- Meeting Surging Demand for Lithium-ion Batteries with
Cost-Effective Expansion
DALIAN,
China, July 21, 2023 /PRNewswire/ -- CBAK
Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy," or the
"Company"), a leading lithium-ion battery manufacturer and electric
energy solution provider in China,
today announced that its subsidiary, Dalian CBAK Power Battery Co.,
Ltd. ("Dalian CBAK"), has successfully reached agreements with the
Shangqiu Urban-Rural Integration Demonstration Zone (the "Shangqiu
City") and partnering entities (the "Lessor"). These strategic
collaborations, in the form of investment and lease agreements,
will enable CBAK Energy to satisfy the surging demand for its 26700
cylindrical batteries at a relatively lower cost.
Under the terms of the cooperation, Dalian CBAK will pay an
annual rental of several million RMB (the "lease payments") to
secure the rights to utilize the Lessor's production line. This
production line is projected to increase Dalian CBAK's capacity by
approximately RMB300 million worth of
our 26700 cylindrical batteries. The Lessor will cover the costs of
renovating the production line to meet Dalian CBAK's manufacturing
needs. Production is expected to commence as early as this year.
Moreover, the investment agreement with Shangqiu City also presents
an opportunity for Dalian CBAK to receive government subsidies once
certain tax conditions are met, which will be used to partially or
fully offset the lease payments, significantly enhancing the
cost-effectiveness to this investment.
Yunfei Li, Chairman and Chief
Executive Officer of CBAK Energy, commented, "We are thrilled to
embark on this collaboration. It will enable us to expand our
production capabilities for high-power batteries, specifically the
26700 lithium-ion cylindrical batteries, in order to meet the
rapidly growing market demand. Furthermore, it strengthens our
commitment to achieving cost-effective and sustainable growth. We
firmly believe that this investment, which allows us to acquire an
additional capacity of RMB300 million
worth of battery products for only RMB3.5
million, will further enhance our sales expectations."
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 batteries and 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, electric tools, energy storage, uninterruptible
power supply (UPS), 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 and Shaoxing, 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 "forward-looking statements" that
involve substantial risks and uncertainties. All statements other
than statements of historical facts contained in this press
release, including statements regarding our future results of
operations and financial position, strategy and plans, and our
expectations for future operations, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. We have attempted to identify forward-looking statements
by terminology including "anticipates," "believes," "can,"
"continue," "could," "estimates," "expects," "intends," "may,"
"plans," "potential," "predicts," "should," or "will" or the
negative of these terms or other comparable terminology. Our actual
results may differ materially or perhaps significantly from those
discussed herein, or implied by, these forward-looking
statements.
The forward-looking statements included in this press release
are made as of the date of this press release and the Company
undertakes no obligation to publicly update or revise any
forward-looking statements, other than as required by applicable
law.
For further inquiries, please contact:
In China:
CBAK Energy Technology, Inc.
Investor Relations Department
Mr. Thierry Jiewei Li
Phone: 86-18675423231
Email: ir@cbak.com.cn
Piacente Financial Communications
Ms. Hui Fan
Tel: +86-10-6508-0677
Email: CBAK@thepiacentegroup.com
In the United
States:
Piacente Financial Communications
Ms. Brandi Piacente
Tel: +1-212-481-2050
Email: CBAK@thepiacentegroup.com
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SOURCE CBAK Energy Technology, Inc.