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Cenntro Electric Announces the Completion of Construction of Cennatic’s Advanced Lithium-Ion Battery Facility in Mexico
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Rhea-AI Summary
Cenntro Electric Group Limited (NASDAQ: CENN) has completed the construction of a 10,436 square meter facility for its U.S. subsidiary, Cennatic Power Inc., which will produce advanced lithium-ion batteries for electric commercial vehicles. The facility in Monterrey, Mexico, is set to begin trial production in the first half of 2023, aiming to reduce dependency on foreign supply chains. This initiative aligns with the new Inflation Reduction Act, potentially qualifying Cenntro's EVs for tax credits. The technology promises enhanced battery performance and cost efficiencies.
Positive
Construction of the manufacturing facility was completed ahead of schedule.
The new facility will manufacture advanced lithium-ion batteries, enhancing product quality.
Potential eligibility for tax credits under the Inflation Reduction Act could improve financial outlook.
Negative
None.
North American-based Lithium-Ion Battery Production to Reduce Dependence on Foreign Supply Chain and Facilitate Greater Technological Advancements
FREEHOLD, N.J.--(BUSINESS WIRE)--
Cenntro Electric Group Limited (NASDAQ: CENN), a leading EV technology company with advanced, market-validated electric commercial vehicles, today announced the completion of construction of the 10,436 square meter (111,363 square feet) facility that will house the Company’s wholly owned U.S. subsidiary, Cennatic Power Inc. (“Cennatic”). Cennatic will manufacture advanced lithium-ion batteries that will be installed in Cenntro’s electric commercial vehicles. The construction was completed ahead of schedule.
Installation of the production line equipment will begin immediately at the purpose-built manufacturing facility strategically located in the Aero Industrial Park in Monterrey, Mexico. The facility is on track to be fully completed by the end of 2022, and trial production is scheduled to begin in the first half of 2023.
Cennatic will produce lithium-ion batteries with advanced features, including greater temperature tolerance, faster charging time, safer operating parameters, longer life cycles, and cost efficiencies.
“This is an important milestone and moves us closer to in-house production of these essential batteries that will ultimately reduce our supply chain dependency on China,” said Peter Wang, Chairman and CEO of Cenntro Electric Group. “Bringing Cennatic online ensures that we have control of a critical component in our supply chain. Moreover, Cennatic’s technology will differentiate our vehicles, allow for operational enhancements, and reduce costs in battery cell production,” concluded Wang.
Manufacturing batteries, battery packs, and electric vehicles in North America could make Cenntro’s Commercial EVs eligible for tax credits under the new Inflation Reduction Act.
About Cenntro Electric Group
Cenntro Electric Group Ltd. (or "Cenntro") (NASDAQ: CENN) is a leading designer and manufacturer of electric light and medium-duty commercial vehicles. Cenntro's purpose-built ECVs are designed to serve a variety of organizations in support of city services, last-mile delivery, and other commercial applications. Cenntro has committed to lead the transformation of commercial fleets to zero-emissions vehicles and develop a full line of zero-emission commercial vehicles through scalable, decentralized production, and smart driving solutions empowered by the Cenntro iChassis. For more information, please visit Cenntro's website at: www.cenntroauto.com.
Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as "may,'' "believe,'' "anticipate,'' "could,'' "should,'' "intend,'' "plan,'' "will,'' "aim(s),'' "can,'' "would,'' "expect(s),'' "estimate(s),'' "project(s),'' "forecast(s)'', "positioned,'' "approximately,'' "potential,'' "goal,'' "strategy,'' "outlook'' and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management's current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro’s forward-looking statements, please see disclosures contained in Cenntro's public filings with the SEC, including the "Risk Factors" in Cenntro's Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 25, 2022 and which may be viewed at www.sec.gov.
What is the recent announcement by Cenntro Electric Group (CENN)?
Cenntro Electric Group announced the completion of a manufacturing facility for lithium-ion batteries in Monterrey, Mexico, set to begin trial production in 2023.
How will Cenntro's new facility impact its supply chain?
The facility will reduce Cenntro's dependency on foreign supply chains by producing essential batteries in-house.
What advantages do the new lithium-ion batteries offer?
The batteries will provide greater temperature tolerance, faster charging, safer operations, longer life cycles, and cost efficiencies.
Will Cenntro Electric Group's products qualify for tax credits?
Yes, manufacturing in North America may make Cenntro's electric commercial vehicles eligible for tax credits under the Inflation Reduction Act.
When will trial production at Cenntro's new facility begin?
Trial production at the new facility is scheduled to start in the first half of 2023.
