Kandi Technologies Group and CBAK Energy Technology—both based in China—announced a strategic partnership to establish two lithium battery production facilities in the US, 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 US Inflation Reduction Act (IRA), offering a forward-looking response to global trade and localization pressures while unlocking long-term growth potential, the partners said.

The cell manufacturing plant will be led by CBAK, which will own 90% of the equity. The pack assembly facility will be led by Kandi, which will own 90% of its equity.

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 20301. The partnership is well-positioned to capture a meaningful share of the battery needs of this expanding market, the companies said.

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 US-based facility. This approach supports the creation of an integrated, end-to-end supply chain from battery cells to complete systems.