China BAK Battery Highlights India Order, AI Data Center Backup-Power Push

Key Points

• CBAK reported strong growth and expansion plans: Fiscal 2025 revenue reached $195 million, while first-quarter 2026 revenue rose 99% year over year to $69.62 million. The company operates 8.3 GWh of capacity and is expanding its Nanjing facility and planning a 3-GWh Southeast Asia plant by 2028.
• A $96 million India order could improve production efficiency: The quarterly battery-cell order from an Indian two- and three-wheeler maker covers CBAK’s 26 Series cells, potentially increasing utilization and lowering unit costs. The company’s 32140-cell shipments also doubled year over year during the first seven months of 2026.
• CBAK is pursuing AI data-center backup power but has no contracts yet: Its 26650 lithium iron phosphate cell is undergoing testing with multiple Tier 1 customers and certification efforts in the U.S. and Europe. Management said no definitive supply agreements or purchase orders have been secured from AI data-center operators.

China BAK Battery NASDAQ: CBAT, which operates as CBAK Energy, said it is expanding production capacity, pursuing growth in electric mobility and energy-storage markets, and testing a new battery cell for AI data center backup-power applications.

During the Clean Energy Metals Conference, Clara Blady, the company’s North America business development and investor relations representative, said CBAK generated net revenue of $195 million in fiscal 2025 and currently operates 8.3 gigawatt-hours of battery production capacity. The company has designed capacity of 38 GWh across its facilities and is targeting a 3-GWh Southeast Asia plant for 2028.

Blady said the company’s current backlog totals $78 million. She also highlighted a recently announced $96 million battery-cell order from an Indian two- and three-wheeler manufacturer. According to management, the order will be placed quarterly, with the first-quarter 2027 order included in the current backlog and the remaining orders expected to be added as received.

Production Expansion and India Order

CBAK operates production and research sites in Dalian, Changzhou and Nanjing, China. Its Nanjing facility is currently its largest, with 4.5 GWh of capacity and an eventual target of 20 GWh, according to the presentation.

The company said shipments of its 32140 battery cells totaled 32 million units during the first seven months of 2026, up 101% from 16 million units in the year-earlier period. Those shipments also exceeded full-year 2025 shipments by approximately 8.6%, Blady said.

CBAK is targeting production of 220,000 cells per day from its Nanjing Phase 2 lines by the end of 2026 and had reached about 80% of that target as of the prior month. A company representative said the newer lines use equipment capable of producing 200 cells per minute, compared with 60 cells per minute on the Phase 1 lines.

Thierry Li, CBAK’s chief financial officer, said the recently announced Indian order is for the company’s 26 Series cells. He said the order could improve utilization of 26 Series production lines, which had experienced reduced utilization after some customers shifted to the company’s 40 Series cells.

“With this significant order coming in and the production capacity for 26 Series would just continuously running, then we believe that unit cost for 26 Series would be significantly lower,” Li said.

Data Center Backup-Power Effort

CBAK also outlined plans to address demand for battery backup systems at AI data centers with its full-tab 26650 lithium iron phosphate cell. Blady said the cell is designed to provide 40C continuous discharge capability and 100C pulse capability. The company said the cell can provide 310 watts of constant output for 100 seconds.

The company is conducting module-level testing with multiple Tier 1 customers and is pursuing UL and CE certifications for the U.S. and European markets. Li said CBAK’s cells are being tested and validated by unnamed AI data center operators, but said the company has not yet entered into definitive supply agreements or received purchase orders from those customers.

Blady said the company believes its large-format cylindrical cells offer safety and cost benefits compared with other designs, including lower manufacturing costs and higher energy density. CBAK said it has reinvested 8% of sales into research and development, holds 462 patents, and dedicates 20% of its workforce to research.

Revenue Mix and Materials Business

For fiscal 2025, residential storage and uninterruptible power supply applications accounted for about 65% of CBAK’s battery-business revenue, while light electric vehicles and electric vehicles contributed about 35%, according to the company.

CBAK reported group gross profit of $18.42 million and adjusted EBITDA of $7.05 million for fiscal 2025. First-quarter 2026 group revenue reached $69.62 million, up 99% from the prior-year quarter, Blady said.

The company also discussed Hitrans Technology, its battery-materials subsidiary. Hitrans has cathode material capacity of 23,000 tons, with an additional 10,000 tons under construction, according to CBAK. The subsidiary reported net income of $1.57 million in the first quarter of 2026.

Management said the materials business is intended to provide greater control over raw-material supply and costs. CBAK also said its planned Southeast Asia facility is intended to mitigate geopolitical risks and support global customers.

Shelf Registration Clarification

During the question-and-answer session, Li addressed a recent filing concerning a $500 million mixed shelf registration. He said it was not a new shelf offering, but rather a replacement of a prior filing following the company’s redomiciliation from Nevada to the Cayman Islands.

Li added that the company did not intend to undertake a private placement or other dilutive action in the near term, citing management’s view that the company’s stock was undervalued.

About China BAK Battery (NASDAQ:CBAT)

China BAK Battery Inc NASDAQ: CBAT is a China-based developer and manufacturer of rechargeable lithium-ion batteries and related power solutions. The company's core product lines include small, medium and large format batteries, battery modules and pack assemblies designed for consumer electronics, electric vehicles, energy storage systems and other industrial applications. China BAK Battery offers polymer lithium-ion cells, prismatic and cylindrical cells, as well as integrated battery systems tailored to meet the performance requirements of its clients.

Founded in 2001 and headquartered in Shenzhen, China BAK Battery has expanded its manufacturing footprint and research and development capabilities over the years to serve customers across Asia, Europe and North America.

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