An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Cenntro Electric to Establish Subsidiary Cennatic for Advanced Lithium-Ion Battery Production in North America
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Cenntro Electric Group Limited (NASDAQ: CENN) announces the establishment of Cennatic Power Inc., a U.S. subsidiary dedicated to manufacturing advanced lithium-ion batteries for electric commercial vehicles. A lease has been signed for a 10,436 square meter facility in Monterrey, Mexico, with trial production expected in the first half of 2023. This strategic move aims to reduce supply chain dependency on China and enhance the company’s battery technology, thereby accelerating development and reducing costs.
Positive
Establishment of Cennatic Power Inc. for in-house battery manufacturing.
Leased facility in Monterrey will ensure local production efficiency.
Aims to reduce dependency on Chinese suppliers for essential components.
Negative
Trial production of batteries is delayed until the first half of 2023.
U.S. Based Subsidiary will Secure Supply for Electric Commercial Vehicles
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 establishment of a separate operating division and wholly owned U.S. subsidiary, Cennatic Power Inc. (“Cennatic”) to manufacture advanced lithium-ion batteries to be used for its electric commercial vehicles.
The Company has signed a lease for a 10,436 square meter (111,363 square foot) purpose-built manufacturing facility at Aero Industrial Park in Monterrey, Mexico where Cennatic will manufacture advanced lithium-ion batteries. Construction of the building is complete and Cennatic expects to complete the production line installation by the end of 2022 and begin trial production in the first half of 2023.
The facility will produce lithium-ion batteries with advanced features including greater temperature tolerance, faster charging time, safer operating parameters, longer life cycles and cost efficiencies.
“We believe bringing the production of essential battery technologies and manufacturing process in-house will accelerate the development of our electric commercial vehicles and reduce our supply chain dependency from China,” said Peter Wang, Chairman and CEO of Cenntro Electric Group. “We believe it is crucial for an EV company to control its battery supply.”
“The new facility’s strategic location in Mexico will enable competitive production and complements our strategy to open new assembly plants that are in customers’ markets to build our capacity. We have worked diligently to develop our own battery technology. We are confident our in-house production and technology will support and improve our vehicles, allow for significant operational enhancement and reduce cost in battery cell production,” concluded Wang.
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 plans to lead the transformation in the automotive industry through scalable, decentralized production, and smart driving solutions empowered by the Cenntro iChassis. As of December 31, 2021, Cenntro has sold or put into service more than 3,700 vehicles in over 25 countries across North America, Europe, and Asia. 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 significance of Cenntro Electric Group's new subsidiary Cennatic Power Inc.?
The establishment of Cennatic Power Inc. will allow Cenntro to produce lithium-ion batteries in-house, enhancing its manufacturing capabilities and reducing reliance on external suppliers.
Where is Cenntro Electric Group's new manufacturing facility located?
The new manufacturing facility is located in Monterrey, Mexico, spanning 10,436 square meters.
When does Cenntro plan to start battery production?
Cenntro Electric Group expects to begin trial production of lithium-ion batteries in the first half of 2023.
How will the new battery production help Cenntro Electric Group?
In-house battery production is expected to accelerate the development of electric commercial vehicles, improve technological capabilities, and reduce production costs.
What is the impact of this development on CENN's stock performance?
The establishment of the new subsidiary and production facility may positively influence CENN's stock by enhancing operational efficiencies and reducing supply chain risks.
