KNDI Kandi Technolgies Group Inc

CBAK Energy Technology, Inc. (NASDAQ: CBAT) (“CBAK Energy,” or the “Company”) a leading lithium-ion battery manufacturer and electric energy solution provider in China, jointly with Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (“Kandi”), a global leader in new energy innovation, today announced a strategic partnership to establish two lithium battery production facilities in the United States. Both companies are currently evaluating potential locations for the facilities. The first facility, dedicated to battery pack assembly, is scheduled for near-term development. The second, focused on battery cell manufacturing, is envisioned as a longer-term initiative that Kandi and CBAK will pursue when market conditions are conducive. Each facility will be established as a separate joint venture, with distinct ownership structures designed to align with the unique objectives and scale of each project.

This partnership underscores CBAK’s long-term commitment to its global expansion strategy. As part of this vision, CBAK is actively evaluating locations outside of China to establish new battery manufacturing capabilities. In the near term, the Company, most likely, plans to launch small-scale battery cell production in a Southeast Asian country, while jointly pursuing the development of a battery cell manufacturing facility in the U.S. with Kandi as a longer-term initiative.

By building localized production capacity for both battery cells and battery packs, CBAK and Kandi aim to address the surging demand in North America’s growing off-road and recreational vehicle markets. This collaboration not only enhances supply chain resilience, but also aligns with the clean energy incentives outlined in the U.S. Inflation Reduction Act (IRA). Collectively, these efforts position both companies to navigate evolving global trade conditions, embrace localization trends, and drive sustainable long-term growth.

As part of the collaboration, two distinct joint ventures will be established. Kandi will lead the development of the battery pack assembly facilities and hold a 90% equity stake in that joint venture. In parallel, CBAK will take the lead on the battery cell manufacturing facilities, holding a 90% equity stake in the corresponding joint venture. Leveraging their respective expertise, the two companies will jointly develop advanced, high energy density battery systems tailored to meet the specific performance demands of 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.

According to market reports1, 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 2030. The partnership is well-positioned to capture a meaningful share of the battery needs of this expanding market.

Zhiguang Hu, CEO of CBAK Energy, commented, “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.”

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.”

Final terms are subject to definitive agreements, and project locations and timelines may change. For more information, please refer to the official filings.

About CBAK EnergyCBAK 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

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.

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CBAK Energy Technology, Inc.Investor Relations DepartmentEmail: ir@cbak.com.cn

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1 Sources: Global Market Insights, NextMSC, and Market Research Future.