Kandi Technologies Group and CBAK Energy Technology have announced a strategic partnership to build two lithium battery production facilities in the United States. Locations are currently under evaluation.
The first facility will focus on battery pack assembly and is planned for near-term development. The second, targeting battery cell manufacturing, represents a longer-term initiative to be pursued when conditions permit.
This partnership is part of a broader effort to establish localized battery production capacity in North America, supporting both off-road electric vehicle platforms and broader energy storage applications.
By producing lithium battery packs and cells domestically, the companies aim to enhance supply chain resilience, meet rising demand, and align with US clean energy incentives under the Inflation Reduction Act (IRA).
Each facility will be operated as a joint venture between Kandi and CBAK, with separate ownership structures reflecting the scope and function of the individual projects. CBAK will lead the cell manufacturing plant with 90% ownership, while Kandi will lead the pack assembly facility with an equivalent equity share.
Highlights:
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Two facilities. The collaboration includes a battery pack assembly plant (led by Kandi) and a battery cell manufacturing plant (led by CBAK), structured as independent ventures.
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Market relevance. The North American market for utility task vehicles (UTVs), golf carts, and other off-road vehicles was valued at $16.7 billion in 2024 and is projected to reach $25.0 billion by 2030. These vehicle types represent an early and scalable path for lithium battery deployment beyond traditional passenger EVs.
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End-to-end battery integration: Kandi and CBAK plan to co-develop high energy density battery systems optimized for off-road and powersports platforms. To support initial production at the U.S. pack facility, CBAK will supply lithium cells from its existing overseas manufacturing base, with plans to transition to its anticipated U.S.-based production.
This approach supports the development of an integrated, domestic battery supply chain, from cell fabrication to final pack assembly. It reflects shifting priorities in electrification, EV infrastructure, and clean transportation.
Final terms are subject to definitive agreements. Project locations, scope, and timelines are under evaluation and may be updated as development progresses.
Filed Under: Batteries, Technology News