- Partnership establishes two production facilities in the U.S. in phases to serve growing off-road vehicle demand and align with clean energy incentives under the U.S. IRA-

Hangzhou, China / Dallas, USA, April 11, 2025 – Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (“Kandi”), a global leader in new energy innovation, and CBAK Energy Technology, Inc. (NASDAQ: CBAT) (“CBAK”), today jointly announced a strategic partnership to establish two lithium battery production facilities in the U.S., with locations under evaluation. The first facility, focused on battery pack assembly, is slated for near-term development. The second facility, dedicated to battery cell manufacturing, represents a longer-term initiative that both parties intend to pursue when conditions are favorable. Each facility will be operated as a separate joint venture between Kandi and CBAK, with differing ownership structures tailored to the specific nature and scope of each project.

The partnership represents a significant milestone in Kandi’s North American strategy. By building localized production capacity for both battery cells and battery packs, Kandi and CBAK are addressing rising demand in the region’s rapidly growing off-road and recreational vehicle segments. The collaboration also enhances supply chain resilience and aligns with clean energy incentives under the U.S. Inflation Reduction Act (IRA), offering a forward-looking response to global trade and localization pressures while unlocking long-term growth potential.

Strategic Highlights

· Two Facilities, Complementary Focus: The cell manufacturing plant will be led by CBAK, who will own 90% of the equity. The pack assembly facility will be led by Kandi, who will own 90% of its equity.

· Market Opportunity: The North American market for UTVs, golf carts, and other off-road vehicles was valued at $16.7 billion in 2024 and is projected to reach approximately $25.0 billion by 2030. The partnership is well-positioned to capture a meaningful share of the battery needs of this expanding market.

· End-to-End Integration: The two companies will jointly develop high energy density battery systems optimized for off-road and powersports vehicles. To ensure a seamless production ramp-up at Kandi’s battery pack facility, CBAK will supply battery cells at market rates—initially from its planned overseas production capacity in the near term, and later from its anticipated U.S.-based facility. This approach supports the creation of an integrated, end-to-end supply chain from battery cells to complete systems.

Feng Chen, CEO of Kandi Technologies, commented, “This partnership with CBAK marks a strategic milestone in our North American expansion. By localizing battery cell and pack production, we’re enhancing supply chain agility and aligning with U.S. clean energy policy incentives. We are positioned to meet fast-rising demand in the off-road and recreational vehicle category, creating sustainable value for our shareholders.”

Zhiguang Hu, CEO of CBAK Energy, stated, “This collaboration with Kandi reflects our shared vision to globalize advanced battery manufacturing while adapting to the evolving U.S. market. Our expertise in cell design and production will be key to establishing a reliable local supply for emerging off-road and recreational vehicle platforms.”

Final terms are subject to definitive agreements, and project locations and timelines may change. For more information, please refer to the official filings.