CBAK Energy Expects Robust Year-End Rebound with New Battery Production Lines and Nanjing Expansion Approaching Completion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Source: SeekingAlpha
Management Transition: CBAK Energy is shifting production from the Model 26650 battery to the larger Model 40135, causing a decline in revenues and profits at their Dalian facility. The Nanjing facility faces supply constraints due to high demand for model 32140 cells, with expansion delays impacting order fulfillment.
Financial Performance: The company reported net revenue of $40.52 million for Q2 2025, down 15% year-over-year, primarily due to a 44.8% drop in residential energy storage sales. Net losses attributable to shareholders were $3.07 million.
Strategic Initiatives: Plans for overseas manufacturing have been paused amid U.S.-China trade negotiations, while management remains focused on expanding market share in Europe, America, and India, particularly in the portable power supply sector.
Outlook and Risks: Management anticipates a recovery by year-end as new production lines come online, but faces challenges such as operational delays, capital constraints for future projects, and a significant decline in the residential energy storage segment.
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About CBAT
CBAK Energy Technology Inc is a holding company principally engaged in manufacturing new energy high power lithium and sodium batteries. The Company primarily operates through two segments. CBAK's segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium-ion rechargeable batteries for use in a wide array of applications. Hitrans' segment mainly includes the development and manufacturing of nickel cobalt manganese (NCM) precursor and cathode materials. The Company's products consist of new energy high power lithium and sodium batteries, as well as battery pack products, which are mainly used in light electric vehicles, electric vehicles, energy storage such as residential energy supply & uninterruptible power supply (UPS) application, and other high-power applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- High-Performance Battery Launch: CBAK Energy introduces the 26650 HP V2.0 and 26650 PFS2 V2.0 cells, designed for 40C and 38C discharge rates respectively, addressing the stable power needs of AI data centers during transient load fluctuations, thereby enhancing GPU performance and computational efficiency.
- Transient Response Capability: The new cells support up to 100C pulse discharge under transient conditions, enabling rapid response to power transient events, reducing the risk of computational interruptions, and ensuring voltage stability during critical moments, thus improving overall system reliability.
- Ultra-Low Internal Resistance Design: Compared to conventional 12 mΩ cells, CBAK's batteries feature internal resistance below 3 mΩ, significantly reducing energy loss and heat generation under high-current conditions, ensuring smooth transitions during UPS to BBU switching, and enhancing stability in large-scale AI data centers.
- Space Efficiency Improvement: The new batteries achieve single-cell outputs of 260W and 310W within the same 26650 form factor, meeting the rising power demands while reducing system complexity, thus supporting more efficient backup system designs to accommodate the scaling needs of AI data centers.
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- Transient Response Capability: The new cells support pulse discharge rates of up to 100C under transient conditions, enabling rapid response to power transient events, acting like a real-time 'shock absorber' to stabilize voltage and reduce the risk of computational interruptions, ensuring reliability during critical moments.
- Improved System Reliability: Compared to conventional 12 mΩ cells, CBAK's ultra-low internal resistance of below 3 mΩ significantly reduces energy loss and heat generation under high-current conditions, facilitating smoother power handover during UPS-to-BBU transitions and enhancing overall system stability.
- Optimized Space Efficiency: The 26650HP V2.0 and 26650PFS2 V2.0 deliver single-cell output power of 260W and 310W respectively, significantly exceeding the industry standard of 120W to 200W, helping data centers achieve higher backup power within limited rack space, reducing system complexity, and supporting higher performance.
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- Transient Load Response Capability: The new batteries can rapidly respond to power transients within milliseconds, supporting pulse discharges of up to 100C, which helps data centers maintain GPU performance during critical moments, reducing the risk of computational interruptions and ensuring system reliability.
- Space Efficiency Improvement: Compared to conventional batteries, CBAK's new cells achieve single-cell power outputs of 260W and 310W within the same 26650 form factor, significantly increasing power density in backup systems, reducing system complexity, and adapting to increasingly constrained rack spaces.
- Long-Duration Backup Performance: The next-generation LFP batteries support over 600 cycles in UPS applications, providing stable long-duration backup performance, lowering battery replacement frequency, and operating effectively in temperatures ranging from -40°C to 70°C, thereby enhancing overall operational safety for data centers.
See More
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- Safety Compliance Advantage: The 26650 FS4 and 26700 FB2 batteries have obtained multiple certifications, including UL and IEC, helping customers reduce compliance risks and streamline product validation processes, thereby improving market entry efficiency and boosting customer confidence.
- Long-lasting Performance Enhancement: The 40135 battery achieves over 4,000 cycles at 0.5C charge/discharge conditions with an energy density of 159 Wh/kg and operates effectively at -30°C, significantly reducing replacement frequency and maintenance costs for customers while enhancing long-term economic benefits.
- New Product Development: CBAK Energy introduced the second-generation 26650 HP/PFS2 battery designed for AI data centers, addressing the need for high-density and rapid-response power, further solidifying the company's market position in high-power applications.
See More
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- Safety and Reliability: Built with stable LFP chemistry and a robust steel shell, the 32140 FS battery is designed to withstand Africa's hot climates and rough road conditions, ensuring long-term reliable operation and boosting local operators' confidence.
- Deepening Strategic Partnerships: Following the expo, CBAK Energy plans to deepen collaborations with local partners to support Africa's transition to cleaner mobility, with annual production capacity expected to expand from 8.3 GWh to 38 GWh to meet market demand.
See More
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- Battery Technology Innovation: CBAK Energy's 40135 FS2 cells showcased at the Vietnam exhibition maintain superior capacity retention over 2,500 cycles, with an expected lifespan of 8 to 10 years, significantly lowering Total Cost of Ownership and attracting strong interest from local fleet operators.
- Enhanced Thermal Safety: The new full-tab architecture reduces temperature rise by 50% during charge-discharge cycles, effectively mitigating thermal runaway risks and ensuring safe performance in high-temperature environments, sparking procurement discussions among local swapping network integrators.
- Leading Energy Density: With an impressive energy density of 172 Wh/kg, the 40135 FS2 cells significantly enhance electric vehicle range, reducing the frequency of swapping station visits and enabling commercial riders to maximize daily operational revenue.
- Market Expansion Plans: CBAK Energy will participate in Autoexpo Kenya from June 3-5, further supporting the African electric mobility market with its latest integrated cylindrical battery solutions, solidifying its position in the global market.
See More
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- High-Performance Battery Launch: CBAK Energy introduces the 26650 HP V2.0 and 26650 PFS2 V2.0 cells, designed for 40C and 38C discharge rates respectively, addressing the stable power needs of AI data centers during transient load fluctuations, thereby enhancing GPU performance and computational efficiency.
- Transient Response Capability: The new cells support up to 100C pulse discharge under transient conditions, enabling rapid response to power transient events, reducing the risk of computational interruptions, and ensuring voltage stability during critical moments, thus improving overall system reliability.
- Ultra-Low Internal Resistance Design: Compared to conventional 12 mΩ cells, CBAK's batteries feature internal resistance below 3 mΩ, significantly reducing energy loss and heat generation under high-current conditions, ensuring smooth transitions during UPS to BBU switching, and enhancing stability in large-scale AI data centers.
- Space Efficiency Improvement: The new batteries achieve single-cell outputs of 260W and 310W within the same 26650 form factor, meeting the rising power demands while reducing system complexity, thus supporting more efficient backup system designs to accommodate the scaling needs of AI data centers.
See More
CBAK Launches Next-Gen High-Rate Lithium Batteries
- Enhanced High-Rate Performance: CBAK Energy's newly launched 26650HP V2.0 and 26650PFS2 V2.0 cells, designed for 40C and 38C discharge rates respectively, aim to address the rapid load fluctuations in AI data centers, thereby ensuring stable GPU performance under high loads and improving computational efficiency.
- Transient Response Capability: The new cells support pulse discharge rates of up to 100C under transient conditions, enabling rapid response to power transient events, acting like a real-time 'shock absorber' to stabilize voltage and reduce the risk of computational interruptions, ensuring reliability during critical moments.
- Improved System Reliability: Compared to conventional 12 mΩ cells, CBAK's ultra-low internal resistance of below 3 mΩ significantly reduces energy loss and heat generation under high-current conditions, facilitating smoother power handover during UPS-to-BBU transitions and enhancing overall system stability.
- Optimized Space Efficiency: The 26650HP V2.0 and 26650PFS2 V2.0 deliver single-cell output power of 260W and 310W respectively, significantly exceeding the industry standard of 120W to 200W, helping data centers achieve higher backup power within limited rack space, reducing system complexity, and supporting higher performance.
See More
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- High-Performance Battery Launch: CBAK Energy introduces the 26650 HP V2.0 and 26650 PFS2 V2.0 high-rate lithium iron phosphate batteries, designed to support 40C and 38C discharge rates respectively, addressing the needs of AI data center battery backup units and enhancing system stability and response speed.
- Transient Load Response Capability: The new batteries can rapidly respond to power transients within milliseconds, supporting pulse discharges of up to 100C, which helps data centers maintain GPU performance during critical moments, reducing the risk of computational interruptions and ensuring system reliability.
- Space Efficiency Improvement: Compared to conventional batteries, CBAK's new cells achieve single-cell power outputs of 260W and 310W within the same 26650 form factor, significantly increasing power density in backup systems, reducing system complexity, and adapting to increasingly constrained rack spaces.
- Long-Duration Backup Performance: The next-generation LFP batteries support over 600 cycles in UPS applications, providing stable long-duration backup performance, lowering battery replacement frequency, and operating effectively in temperatures ranging from -40°C to 70°C, thereby enhancing overall operational safety for data centers.
See More
CBAK Energy Successfully Showcases Innovations at The Battery Show Europe 2026
- Market Demand Insight: At The Battery Show Europe 2026, CBAK Energy showcased its 26650 FS4 and 26700 FB2 batteries, highlighting the increasing emphasis on safety, longevity, and efficiency in the European market, which is expected to enhance the company's competitiveness in the rapidly growing energy storage sector.
- Safety Compliance Advantage: The 26650 FS4 and 26700 FB2 batteries have obtained multiple certifications, including UL and IEC, helping customers reduce compliance risks and streamline product validation processes, thereby improving market entry efficiency and boosting customer confidence.
- Long-lasting Performance Enhancement: The 40135 battery achieves over 4,000 cycles at 0.5C charge/discharge conditions with an energy density of 159 Wh/kg and operates effectively at -30°C, significantly reducing replacement frequency and maintenance costs for customers while enhancing long-term economic benefits.
- New Product Development: CBAK Energy introduced the second-generation 26650 HP/PFS2 battery designed for AI data centers, addressing the need for high-density and rapid-response power, further solidifying the company's market position in high-power applications.
See More
CBAK Energy Showcases Battery Technology at Autoexpo Kenya 2026
- Growing Market Demand: CBAK Energy showcased its 32140 and 40135 large cylindrical LFP cells at the 2026 Autoexpo Kenya, targeting Africa's expanding electric two-wheeler and three-wheeler markets, which is expected to enhance the company's market share in the region.
- Significant Technical Advantages: The 32140 FS series battery features ultra-low internal resistance (approximately 1.3mΩ) and long cycle life, supporting 2C fast charging and 3C continuous discharging to meet the demands of Africa's high-frequency commercial motorcycles, thereby improving operational efficiency and reducing costs.
- Safety and Reliability: Built with stable LFP chemistry and a robust steel shell, the 32140 FS battery is designed to withstand Africa's hot climates and rough road conditions, ensuring long-term reliable operation and boosting local operators' confidence.
- Deepening Strategic Partnerships: Following the expo, CBAK Energy plans to deepen collaborations with local partners to support Africa's transition to cleaner mobility, with annual production capacity expected to expand from 8.3 GWh to 38 GWh to meet market demand.
See More
CBAK Energy Showcases New Battery Technology in Vietnam
- Battery Technology Innovation: CBAK Energy's 40135 FS2 cells showcased at the Vietnam exhibition maintain superior capacity retention over 2,500 cycles, with an expected lifespan of 8 to 10 years, significantly lowering Total Cost of Ownership and attracting strong interest from local fleet operators.
- Enhanced Thermal Safety: The new full-tab architecture reduces temperature rise by 50% during charge-discharge cycles, effectively mitigating thermal runaway risks and ensuring safe performance in high-temperature environments, sparking procurement discussions among local swapping network integrators.
- Leading Energy Density: With an impressive energy density of 172 Wh/kg, the 40135 FS2 cells significantly enhance electric vehicle range, reducing the frequency of swapping station visits and enabling commercial riders to maximize daily operational revenue.
- Market Expansion Plans: CBAK Energy will participate in Autoexpo Kenya from June 3-5, further supporting the African electric mobility market with its latest integrated cylindrical battery solutions, solidifying its position in the global market.
See More
