CBAK Energy announces production capacity expansion in anticipation of increasing client orders

CBAK Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy", or the "Company"), a leading lithium-ion battery manufacturer and electric energy solution provider, today provided additional details for its plans previously disclosed in its 8-K filing to expand its production capacity in Nanjing and Dalian in anticipation of increasing client orders.

For its Nanjing manufacturing plants, the Company plans to attain a total capacity of 8 GWh per year to produce lithium batteries for the light electric vehicle ("LEV"), electric vehicle, and energy storage industries. The Company expects to achieve such capacity expansion through two phases of construction: Phase I is to be completed by the end of 2022 to reach an annual production capacity of 2 GWh. Phase II is to be completed by the end of 2023 to reach the remaining 6 GWh of the planned annual production capacity expansion.

As of February 3, 2021, the Company is on track with its Phase I construction and also designing its Phase II construction. As part of its Phase I construction, the Company plans to invest 70 million yuan to develop a production line with annual capacity of 0.7 GWh for its new model 32140 batteries, which is expected to be put in operation in the second half of 2021 to produce 50,000 model 32140 batteries per day. The Company may adjust its capacity expansion timeline to stay in sync with market conditions and client demands.

In addition to its capacity expansion in Nanjing, the Company also expects to invest 50 million yuan in its manufacturing plants in Dalian to add one more production line with an annual capacity of 0.4 GWh to produce additional 100,000 model 26650 batteries per day. At the same time, the Company continues to renovate its existing facilities, upgrade its equipment, add new equipment, improve its product functionality, and enhance the raw materials and components used for production.

Mr. Yunfei Li, Chief Executive Officer of CBAK Energy, commented, "As the market demand for cylindrical lithium iron phosphate batteries rises rapidly to keep up with the development of light electric vehicles, electric vehicles, and energy storage, we are experiencing an influx of client orders. In anticipation of continuously rising market demand, we are investing aggressively in our production capacity expansion and existing facilities renovation. Looking ahead, we remain committed to optimizing our resource allocation, capitalizing on new market opportunities, and generating lasting value for our shareholders."