CBAK, the China-based lithium-ion battery maker, has announced a strategic partnership with the battery and electric vehicle (EV) maker Kandi Technologies for two lithium-ion battery production facilities in the United States.
Both companies said that they are currently reviewing options for where these facilities could be located.
The first facility would be for battery pack assembly, and the second as a longer-term initiative between both companies in battery cell manufacturing, it said.
They said that the facilities would be established as separate joint ventures with distinct ownership structures.
The pack assembly facility would be led by and 90% owned by Kandi, while the battery cell manufacturing facility led and 90% owned by CBAK.
The firms want to address the demand in the off-road and recreational vehicle markets, which they claim have been surging in North America.
CBAK claims it will supply battery cells at market rate to support Kandi’s ramp-up of production.
Zhiguang Hu, CEO, CBAK Energy, said: “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, Kandi Technologies, said: “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.”
