Kandi and CBAK Announce Strategic Partnership to Launch U.S. Lithium Battery Facilities in Phases
Kandi Technologies (NASDAQ: KNDI) and CBAK Energy Technology have announced a strategic partnership to establish two lithium battery production facilities in the United States. The initiative includes:
- A near-term battery pack assembly facility (90% Kandi-owned)
- A long-term battery cell manufacturing facility (90% CBAK-owned)
The partnership aims to serve the growing North American off-road vehicle market, valued at $16.7 billion in 2024 and projected to reach $25.0 billion by 2030. The collaboration will develop high-energy density battery systems for UTVs, golf carts, and other off-road vehicles. Initially, CBAK will supply battery cells from overseas production, transitioning to U.S.-based manufacturing when conditions are favorable. The strategy aligns with U.S. Inflation Reduction Act (IRA) clean energy incentives and aims to enhance supply chain resilience.
Kandi Technologies (NASDAQ: KNDI) e CBAK Energy Technology hanno annunciato una partnership strategica per stabilire due impianti di produzione di batterie al litio negli Stati Uniti. L'iniziativa include:
- Un impianto di assemblaggio di pacchi batteria a breve termine (di proprietà al 90% di Kandi)
- Un impianto di produzione di celle batteria a lungo termine (di proprietà al 90% di CBAK)
La partnership mira a servire il crescente mercato nordamericano dei veicoli fuoristrada, valutato 16,7 miliardi di dollari nel 2024 e previsto raggiungere 25,0 miliardi di dollari entro il 2030. La collaborazione svilupperà sistemi di batterie ad alta densità energetica per UTV, carrelli da golf e altri veicoli fuoristrada. Inizialmente, CBAK fornirà celle batteria da produzione estera, per poi passare alla produzione negli Stati Uniti quando le condizioni saranno favorevoli. La strategia si allinea con gli incentivi per l'energia pulita dell'Inflation Reduction Act (IRA) degli Stati Uniti e mira a migliorare la resilienza della catena di approvvigionamento.
Kandi Technologies (NASDAQ: KNDI) y CBAK Energy Technology han anunciado una asociación estratégica para establecer dos instalaciones de producción de baterías de litio en los Estados Unidos. La iniciativa incluye:
- Una instalación de ensamblaje de paquetes de baterías a corto plazo (90% propiedad de Kandi)
- Una instalación de fabricación de celdas de batería a largo plazo (90% propiedad de CBAK)
La asociación tiene como objetivo atender el creciente mercado norteamericano de vehículos todoterreno, valorado en 16,7 mil millones de dólares en 2024 y proyectado para alcanzar 25,0 mil millones de dólares para 2030. La colaboración desarrollará sistemas de baterías de alta densidad energética para UTVs, carritos de golf y otros vehículos todoterreno. Inicialmente, CBAK suministrará celdas de batería de producción en el extranjero, pasando a la fabricación en EE. UU. cuando las condiciones sean favorables. La estrategia se alinea con los incentivos de energía limpia de la Ley de Reducción de la Inflación (IRA) de EE. UU. y busca mejorar la resiliencia de la cadena de suministro.
Kandi Technologies (NASDAQ: KNDI)와 CBAK Energy Technology는 미국에 두 개의 리튬 배터리 생산 시설을 설립하기 위한 전략적 파트너십을 발표했습니다. 이 이니셔티브에는 다음이 포함됩니다:
- 단기 배터리 팩 조립 시설 (Kandi 소유 90%)
- 장기 배터리 셀 제조 시설 (CBAK 소유 90%)
이 파트너십은 2024년 167억 달러로 평가되는 북미 오프로드 차량 시장을 지원하는 것을 목표로 하며, 2030년까지 250억 달러에 이를 것으로 예상됩니다. 협력은 UTV, 골프 카트 및 기타 오프로드 차량을 위한 고밀도 에너지 배터리 시스템을 개발할 것입니다. 초기에는 CBAK가 해외 생산에서 배터리 셀을 공급하고, 조건이 유리해지면 미국 기반 제조로 전환할 것입니다. 이 전략은 미국의 인플레이션 감축법(IRA) 청정 에너지 인센티브와 일치하며 공급망 회복력을 강화하는 것을 목표로 합니다.
Kandi Technologies (NASDAQ: KNDI) et CBAK Energy Technology ont annoncé un partenariat stratégique pour établir deux installations de production de batteries au lithium aux États-Unis. L'initiative comprend :
- Une installation d'assemblage de packs de batteries à court terme (90 % propriété de Kandi)
- Une installation de fabrication de cellules de batterie à long terme (90 % propriété de CBAK)
Le partenariat vise à servir le marché nord-américain croissant des véhicules tout-terrain, évalué à 16,7 milliards de dollars en 2024 et prévu d'atteindre 25,0 milliards de dollars d'ici 2030. La collaboration développera des systèmes de batteries à haute densité énergétique pour les UTV, les voiturettes de golf et d'autres véhicules tout-terrain. Dans un premier temps, CBAK fournira des cellules de batterie provenant de la production à l'étranger, avant de passer à une fabrication basée aux États-Unis lorsque les conditions seront favorables. La stratégie s'aligne avec les incitations à l'énergie propre de la loi sur la réduction de l'inflation (IRA) des États-Unis et vise à renforcer la résilience de la chaîne d'approvisionnement.
Kandi Technologies (NASDAQ: KNDI) und CBAK Energy Technology haben eine strategische Partnerschaft angekündigt, um zwei Lithium-Batterieproduktionsanlagen in den Vereinigten Staaten zu errichten. Die Initiative umfasst:
- Eine kurzfristige Montageanlage für Batteriepacks (90% im Besitz von Kandi)
- Eine langfristige Produktionsanlage für Batteriezellen (90% im Besitz von CBAK)
Die Partnerschaft zielt darauf ab, den wachsenden nordamerikanischen Markt für Geländefahrzeuge zu bedienen, der im Jahr 2024 mit 16,7 Milliarden Dollar bewertet wird und voraussichtlich bis 2030 25,0 Milliarden Dollar erreichen wird. Die Zusammenarbeit wird hochenergetische Batteriesysteme für UTVs, Golfwagen und andere Geländefahrzeuge entwickeln. Zunächst wird CBAK Batteriezellen aus Übersee liefern und dann zur Herstellung in den USA übergehen, wenn die Bedingungen günstig sind. Die Strategie steht im Einklang mit den Anreizen für saubere Energie des US Inflation Reduction Act (IRA) und zielt darauf ab, die Resilienz der Lieferkette zu verbessern.
- Strategic expansion into U.S. market with two manufacturing facilities
- Access to IRA clean energy incentives through local production
- Targeting growing $16.7B North American off-road vehicle market
- Vertical integration through end-to-end battery production capability
- 90% ownership stake in battery pack assembly facility
- Long-term cell manufacturing facility dependent on favorable conditions
- Initial reliance on overseas battery cell supply
- Final terms still subject to definitive agreements
- Project locations and timelines not yet finalized
Insights
Kandi's strategic partnership with CBAK represents a significant vertical integration play that addresses multiple strategic imperatives simultaneously. The company is effectively establishing an end-to-end battery supply chain for the North American market, with Kandi controlling 90% of the battery pack assembly operations while CBAK leads cell manufacturing with 90% ownership of that facility.
The financial wisdom of this phased approach is noteworthy. By prioritizing battery pack assembly in the near term while sourcing cells from CBAK's existing production, Kandi can generate earlier returns while minimizing initial capital expenditure. The $16.7 billion North American off-road vehicle market with projected growth to $25 billion by 2030 provides substantial addressable market opportunity.
This partnership creates three distinct value drivers: 1) Qualification for IRA tax credits and incentives for U.S. manufacturing; 2) Margin enhancement through vertical integration and reduced logistics costs; and 3) Supply chain resilience amid global trade uncertainties.
For Kandi's relatively modest
This phased manufacturing approach demonstrates sophistication in Kandi's production strategy. Rather than attempting simultaneous development of both facilities, the company is prioritizing the less capital-intensive battery pack assembly operation first – a logical sequencing that reduces execution risk while establishing market presence.
The ownership structure (90/10 split for each facility, with leadership aligned with core competencies) creates clear operational accountability while maintaining partnership benefits. This structure typically streamlines decision-making while incentivizing both parties to support the other's success.
From a supply chain perspective, this creates immediate resilience for Kandi's North American operations. By building local assembly capacity while initially sourcing cells from CBAK's overseas production, they achieve partial localization benefits quickly while working toward complete vertical integration. The IRA's substantial incentives for domestic battery production (
The partnership addresses a critical vulnerability many EV and off-road vehicle manufacturers face: battery supply constraints. By controlling both pack assembly and eventually cell production, Kandi gains competitive advantage through supply assurance, customization capabilities, and potentially accelerated development cycles for new battery systems optimized for off-road applications.
While implementation details remain pending, this operational framework positions Kandi to capture value across the battery supply chain while strengthening their competitive position in the North American off-road vehicle market.
- Partnership establishes two production facilities in the U.S. in phases to serve growing off-road vehicle demand and align with clean energy incentives under the U.S. IRA
Hangzhou, China / Dallas, April 14, 2025 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (“Kandi”), a global leader in new energy innovation, and CBAK Energy Technology, Inc. (NASDAQ: CBAT) (“CBAK”), today jointly announced a strategic partnership to establish two lithium battery production facilities in the U.S., with locations under evaluation. The first facility, focused on battery pack assembly, is slated for near-term development. The second facility, dedicated to battery cell manufacturing, represents a longer-term initiative that both parties intend to pursue when conditions are favorable. Each facility will be operated as a separate joint venture between Kandi and CBAK, with differing ownership structures tailored to the specific nature and scope of each project.
The partnership represents a significant milestone in Kandi’s North American strategy. By building localized production capacity for both battery cells and battery packs, Kandi and CBAK are addressing rising demand in the region’s rapidly growing off-road and recreational vehicle segments. The collaboration also enhances supply chain resilience and aligns with clean energy incentives under the U.S. Inflation Reduction Act (IRA), offering a forward-looking response to global trade and localization pressures while unlocking long-term growth potential.
Strategic Highlights
- Two Facilities, Complementary Focus: The cell manufacturing plant will be led by CBAK, who will own
90% of the equity. The pack assembly facility will be led by Kandi, who will own90% of its equity.
- Market Opportunity: The North American market for UTVs, golf carts, and other off-road vehicles was valued at
$16.7 billion in 2024 and is projected to reach approximately$25.0 billion by 20301. The partnership is well-positioned to capture a meaningful share of the battery needs of this expanding market.
- End-to-End Integration: The two companies will jointly develop high energy density battery systems optimized for off-road and powersports vehicles. To ensure a seamless production ramp-up at Kandi’s battery pack facility, CBAK will supply battery cells at market rates—initially from its planned overseas production capacity in the near term, and later from its anticipated U.S.-based facility. This approach supports the creation of an integrated, end-to-end supply chain from battery cells to complete systems.
Feng Chen, CEO of Kandi Technologies, commented, “This partnership with CBAK marks a strategic milestone in our North American expansion. By localizing battery cell and pack production, we’re enhancing supply chain agility and aligning with U.S. clean energy policy incentives. We are positioned to meet fast-rising demand in the off-road and recreational vehicle category, creating sustainable value for our shareholders.”
Zhiguang Hu, CEO of CBAK Energy, stated, “This collaboration with Kandi reflects our shared vision to globalize advanced battery manufacturing while adapting to the evolving U.S. market. Our expertise in cell design and production will be key to establishing a reliable local supply for emerging off-road and recreational vehicle platforms.”
Final terms are subject to definitive agreements, and project locations and timelines may change. For more information, please refer to the official filings.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua New Energy Vehicle Town，Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Kandi Electric Vehicles (Hainan) Co., Ltd. and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
About CBAK Energy
CBAK Energy Technology, Inc. (NASDAQ: CBAT) is a leading high-tech enterprise in China engaged in the development, manufacturing, and sales of new energy high power lithium and sodium batteries, as well as the production of raw materials for use in manufacturing high power lithium batteries. The applications of the Company’s products and solutions include electric vehicles, light electric vehicles, energy storage and other high-power applications. In January 2006, CBAK Energy became the first lithium battery manufacturer in China listed on the Nasdaq Stock Market. CBAK Energy has multiple operating subsidiaries in Dalian, Nanjing, Shaoxing and Shangqiu, as well as a large-scale R&D and production base in Dalian. For more information, please visit ir.cbak.com.cn.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
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Contacts:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.co
1 Sources: Global Market Insights, NextMSC, and Market Research Future.
FAQ
What is the ownership structure of the new U.S. battery facilities between Kandi and CBAK?
What is the market size for North American UTVs and off-road vehicles that KNDI is targeting?
How will KNDI's battery supply chain work in the initial phases of the U.S. facilities?
What types of vehicles will KNDI's new battery facilities serve?
