CBAK Energy partners with JAC Motors to jointly develop new battery cells

CBAK Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy", or the "Company"), a leading lithium-ion battery manufacturer and electric energy solution provider, today announced that it has signed a three-year strategic agreement (the "Agreement") with Anhui Jianghuai Motors Group Co., Ltd (SSE: 600418) ("JAC Motors") for joint product development.

JAC Motors is a Chinese state-owned automobile and commercial vehicle manufacturer. Founded in 1964, JAC Motors is among the top four domestic Chinese vehicle brands, has an R&D team of 5,000 people, and is focused on producing energy-saving, environmentally friendly, safe, smart, Web-enabled, and comfortable vehicles. As a pioneer in China's alternative energy vehicle industry, JAC Motors currently provides an expansive electric vehicle product line encompassing SUVs, sedans, and other passenger vehicles. It owns a world-class battery cooling technology and is the sole producer of such technology in China. By the end of 2019, JAC Motors has exported over 640,000 vehicles to the international market.

The strategic agreement that CBAK Energy has reached with JAC Motors will combine the former's extensive experience in the research, development, and manufacturing of battery cells with the latter's technology capabilities and electric vehicle industry leadership. By leveraging their shared expertise in product development and applications of both automotive power batteries and battery pack technologies, the two companies plan to jointly develop cylindrical lithium-ion batteries and battery packs, including the 46800 model.

Pursuant to the Agreement, the Company will provide customized implementation solutions for power batteries and battery packs based on the latest technical requirements of JAC Motors. Additionally, the two companies will also establish a joint research and development team to design, test, and enhance the adaptability of their new products in electric vehicles. In addition, JAC Motors has committed to prioritizing the implementation of those batteries and battery pack systems jointly developed by the two companies for its future productions of electric vehicles.

The partnership will leverage the Company's battery technology leadership and JAC Motors' world-class automotive R&D capabilities to accelerate the growth of both parties. More broadly, by working together, the two companies plan to advance the technology of automotive power batteries and actively explore the implementation of a partnership model that is both effective and capable of advancing their businesses going forward.