CBAK Energy subsidiary enters strategic collaborations with Shangqiu City

CBAK Energy Technology announced that its subsidiary, Dalian CBAK Power Battery Co., has successfully reached agreements with the Shangqiu Urban-Rural Integration Demonstration Zone and partnering entities. 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 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. 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.”