CBAK Energy Stock Maintains Momentum On Nanjing Expansion Plans: Retail Chatter Reflects Exuberance
While the company’s Phase I project is currently operating at full capacity, it has decided to fast-track the progress of Phase II In response to urgent client requirements.
FollowShares of CBAK Energy Technology Inc (CBAT) continued their uptrend on Monday after the company’s subsidiary, Nanjing CBAK New Energy Technology Co., signed procurement agreements with suppliers and completed prepayment for production equipment and utilities for the first two production lines at its Phase II project in Nanjing.
While the company’s Phase I project is currently operating at full capacity, it has decided to fast-track the progress of Phase II In response to urgent client requirements. Following the disclosure, shares of CBAK Energy rallied by nearly 6% on Monday afternoon.
CBAK Energy is a China-based firm that develops, manufactures, and sells new energy high-power lithium batteries and raw materials for them.
CBAK said the first two production lines at Phase II are scheduled to enter trial production by May 2025, and full-scale mass production is expected to begin by late 2025.
CEO Zhiguang Hu said the addition of the two production lines will significantly enhance the firm’s capacity to meet clients' surging demand.
"The flexibility of one of the lines to produce the Model 40135 battery cells opens up exciting new opportunities in the energy storage sector. We will continue to keep our investors informed as we reach key milestones in this transformative project,” Hu said.
Meanwhile, retail chatter on Stocktwits reflected a positive take on the stock.
Last week, Nanjing CBAK New Energy Technology won significant orders from Chinese intelligent hardware brand firm Anker Innovations Technology Co. The company said the total value of the orders stood at approximately between RMB 200 million and RMB 250 million, or around $30 million to $35 million.
Despite the recent rally, shares of CBAK Energy have gained just over 7% year-to-date.
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