China BAK Battery Targets India Growth, AI Data Centers With Major Capacity Expansion

Key Points

• CBAK is accelerating capacity expansion, targeting an increase in Nanjing capacity from 4.5 GWh to 10.5 GWh by the end of 2026, alongside a separate planned 12 GWh project. The company says 32140 cell shipments rose 101.5% year over year in the first seven months of 2026.
• India is a major growth market, with CBAK securing an approximately $96 million order from a leading electric two- and three-wheeler manufacturer and expecting repeat quarterly orders from Indian customers.
• CBAK is testing a full-tab LFP cell for AI data-center backup power with multiple Tier 1 customers, while tariffs remain a challenge for U.S. sales. Plans for a Southeast Asian manufacturing plant are progressing slowly because of funding and Chinese currency-transfer constraints.

China BAK Battery NASDAQ: CBAT, operating as CBAK Energy Technology Limited, outlined plans to expand cylindrical battery production, pursue AI data center backup-power opportunities and build its presence in India and Southeast Asia during Noble Capital Markets’ Emerging Growth Virtual Equity Conference.

Clara Bladey, CBAK’s North American business development and investor relations representative, said the company generated approximately $195 million in revenue during 2025. First-quarter 2026 revenue reached $69.6 million, nearly doubling from the prior-year period, according to the presentation. The company reported fiscal 2025 gross profit of $18.42 million and adjusted EBITDA of $7.05 million.

CBAK said it has 38 gigawatt-hours of annual designed capacity across its facilities, while current production capacity stands at 8.3 GWh. The company operates manufacturing sites in Dalian, Nanjing and Changzhou and said it has more than 500,000 square meters of facilities.

Nanjing Expansion Targets Higher Output

Thierry Li, CBAK’s CFO, director and company secretary, said the Nanjing facility will be a central part of the company’s future expansion. The company increased Nanjing capacity from roughly 1.5 GWh last year by adding 3 GWh, which Li said had been fully ramped up during 2026.

The company said shipments of its 32140 cylindrical cell totaled approximately 32.55 million units in the first seven months of 2026, up 101.5% year over year and above full-year 2025 shipment volume. The second phase of Nanjing’s ramp-up was completed in August, and CBAK said unit production costs declined afterward.

CBAK is targeting an additional 6 GWh of capacity at the Nanjing site by the end of 2026, raising the facility’s annual capacity from 4.5 GWh to 10.5 GWh. It also signed an investment agreement for a separate 12 GWh Nanjing project intended to support future lithium-ion and sodium-ion battery production.

Li said the company experienced capacity constraints as customers sought additional cells beginning in August of the prior year. He said the added capacity is intended to support demand from India, including for the company’s 32140 and larger 60150 cylindrical cells.

India Orders and AI Data Center Testing

The company identified India’s electric two- and three-wheeler market as an important source of demand. Bladey said CBAK secured an approximately $96 million battery-cell order in August from a major Indian two- and three-wheeler manufacturer. She added that the customer places orders quarterly, meaning later-quarter orders were not yet reflected in backlog figures.

Li said most of the company’s reported backlog comes from major two- and three-wheeler operators in India. He said CBAK works with nearly all of India’s top 10 light electric vehicle operators and expects repeat orders after its cells are incorporated into vehicle models.

CBAK also is developing a full-tab 26650 lithium iron phosphate cell for backup-power systems used by AI data centers. Bladey said the company is conducting module-level testing with multiple Tier 1 customers and pursuing certifications for U.S. and European markets.

Li said U.S. AI data center operators testing the cells have provided positive feedback on performance, particularly regarding stability, safety and heat dispersion. He said tariffs on Chinese-manufactured cells remain an issue for potential U.S. business. In response to a separate question about UL and CE certifications for data-center applications, Li answered affirmatively.

Southeast Asia Plans Face Funding Constraints

CBAK said it is considering overseas manufacturing to serve global customers and address tariff and trade-barrier risks. The company has discussed a Southeast Asia plant targeted for site selection in 2027 and mass production in 2028.

However, Li said progress on the project has been slow because the company has not identified a suitable funding source. He cited China’s currency controls as a constraint on transferring operating cash outside the country and said management does not plan to raise capital through a public offering while it believes the company’s stock is undervalued.

The company also highlighted Hitrans, its battery-materials business acquired in 2021. Li said Hitrans previously produced cathode materials and precursors for nickel manganese cobalt batteries, but CBAK discontinued that business as lithium iron phosphate demand grew faster. He said Hitrans has since operated as a financial investment and is expected to improve as raw-material prices recover and customer additions support profitability.

Looking ahead, Li said investors should monitor the company’s capacity expansion and revenue growth. He said higher capital expenditures could limit near-term profit growth, but management expects profitability to improve after expansion projects are completed and revenue scales.

About China BAK Battery (NASDAQ:CBAT)

China BAK Battery, Inc is a battery manufacturer headquartered in Dalian, China, and its shares trade on the Nasdaq under the symbol CBAT. The company develops and produces rechargeable lithium-ion battery cells, battery packs and related energy-storage products.

Its products are designed for applications including electric vehicles, electric bicycles and other light electric vehicles, consumer electronics, power tools, uninterruptible power supplies and stationary energy-storage systems.

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