Kandi partners with CBAK to launch US lithium battery facilities
Each facility will be operated as a separate joint venture between the two Chinese companies, with differing ownership structures tailored to the specific nature and scope of each project.
Kandi Technologies, a Chinese manufacturer of batteries and electric vehicles, and CBAK Energy Technology have jointly announced a strategic partnership to establish two lithium battery production facilities in the US, with locations under evaluation.
CBAK is a China-based manufacturer and distributor of lithium-ion rechargeable batteries.
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, according to a media release.
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 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 own 90% of its equity.
The two companies will jointly develop high energy density battery systems optimized for off-road and power sports 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 US-based facility. This approach supports the creation of an integrated, end-to-end supply chain from battery cells to complete systems, the media release said.
“This partnership with CBAK marks a strategic milestone in our North American expansion,” said Feng Chen, CEO of Kandi Technologies. “By localizing battery cell and pack production, we’re enhancing supply chain agility and aligning with US 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.”
“This collaboration with Kandi reflects our shared vision to globalize advanced battery manufacturing while adapting to the evolving U.S. market,” said Zhiguang Hu, CEO of CBAK Energy. “Our expertise in cell design and production will be key to establishing a reliable local supply for emerging off-road and recreational vehicle platforms.”
