CBAK Energy Technology, Inc. (NASDAQ: CBAT)

CBAK Energy Technology, Inc. designs, manufactures, and sells high-power lithium and sodium batteries, along with advanced battery materials, for applications spanning light electric vehicles, electric vehicles, energy storage systems, and uninterruptible power supplies. Operating primarily in the new energy battery sector, the company also produces nickel-cobalt-manganese (NCM) precursors and cathode materials through its majority-owned subsidiary, Hitrans, broadening its footprint in the lithium-ion battery supply chain. With manufacturing facilities in Nanjing, Dalian, Shangqiu, and Shaoxing, the company targets both domestic and international markets, leveraging its research and development capabilities to introduce next-generation battery models.

The company generates revenue through the sale of cylindrical lithium and sodium battery cells, battery packs, and high-performance battery materials. Its lithium batteries, primarily using lithium iron phosphate (LFP) chemistry, cater to light electric vehicles and energy storage applications, while sodium batteries address demand for ultra-low-temperature resilience and fast-charging solutions. Additionally, Hitrans contributes revenue by supplying NCM precursors and cathode materials to battery manufacturers. In 2025, the company reported $195.2 million in revenue, driven by strong demand in light electric vehicles and energy storage, though it posted a net loss of $10.4 million amid expansion and production ramp-up costs.

The company operates through the following segments.

• High-power lithium and sodium battery cells: This segment focuses on the production and sale of cylindrical lithium and sodium battery cells, including models such as 32140, 40135, and 26650. These batteries serve light electric vehicles, electric vehicles, residential energy storage, and uninterruptible power supply (UPS) applications. The segment also includes battery pack integration operations, particularly for light electric vehicle battery swapping infrastructure in African markets.

• Manufacture and sale of battery materials: This segment, conducted through Hitrans, involves the development, production, and sale of NCM precursors and cathode materials for high-power lithium batteries. Hitrans operates a 13,000-metric-ton capacity for both precursors and cathode materials, with expansion plans to increase cathode production to 23,000 metric tons by 2027. The segment targets battery manufacturers across China, supplying critical components for electric vehicles, power tools, and energy storage systems.

CBAK Energy Technology, Inc. competes in a highly fragmented and competitive Chinese battery and materials market, facing rivals such as EVE Battery, Gotion Hi-tech, and Great Power in cylindrical battery production, and Beijing Easpring and Huayou Cobalt in cathode materials. The company differentiates itself through proprietary research and development, holding 302 patents across its subsidiaries, with expirations extending to 2045. Its sodium-ion batteries, capable of retaining 85% capacity at -40°C and charging to 90% in 10 minutes, provide a unique advantage in extreme environments. Additionally, the company’s vertical integration—spanning battery cells to cathode materials—enhances cost control and supply chain resilience, positioning it to capitalize on the growing demand for high-power and energy-dense battery solutions.

The company serves a diverse customer base, including manufacturers of light electric vehicles, electric vehicles, and energy storage systems. Key customers include Anker Innovations, Spiro Mobility, Scania, Ather Energy, Shenzhen ACE Battery, DAT Bike, and Inverted Energy. In 2025, 75% of revenue was derived from mainland China, with significant contributions from Europe, India, and Africa. The company’s battery packs, produced through its Nanjing BFD subsidiary, are primarily deployed in light electric vehicle battery swapping infrastructure across African markets, reflecting its expanding international presence.