Chinese automotive firm Kandi Technologies and battery manufacturer CBAK Energy Technology have formed a strategic partnership to establish two lithium battery production facilities in the US, at locations under evaluation.

The first facility, focused on battery pack assembly, is slated for near-term development. The second facility, for battery cell manufacturing, will be a longer-term initiative that the companies say they intend to pursue when conditions are favorable. Each facility will be operated as a separate joint venture between Kandi and CBAK. The cell manufacturing plant will be led by CBAK, which will own 90% of the equity. The pack assembly facility will be led by Kandi, which will hold 90% of its equity.

The companies will jointly develop high-energy-density battery systems optimized for off-road and powersports vehicles. CBAK will supply battery cells to Kandi’s battery pack facility at market rates—initially from its planned overseas production capacity 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.

By building localized production capacity for 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 collaboration also enhances supply chain resilience and aligns with clean energy incentives under the US Inflation Reduction Act (IRA).

“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 US clean energy policy incentives. We are positioned to meet fast-rising demand in the off-road and recreational vehicle category,” said Feng Chen, CEO of Kandi Technologies.

Source: Kandi Technologies