CBAK Energy Technology Inc (NASDAQ: CBAT) is flying in the market this morning, but if you’re looking for press releases or SEC filings, you’re not going to find much. There has been nothing released from the company.
So, what’s the deal?
According to an ITDCW report, the company has joined the list of battery makers that are looking to take advantage of Tesla’s technology with regard to batteries. Here’s what’s going on:
CBAK Energy Technology Joins Team 4680
A report that first appeared on ITDCW was translated by Tasmanian, suggesting that CBAK Energy Technology will be producing a valuable battery cell.
It all started in September when Tesla held its Battery Day event. At the event, the company announced a new tabless 4680 cell form factor that was designed to increase energy density and features the thermal characteristics of smaller battery cells.
At the same time, the new 4680 cells improve the power-to-weight ratio and lowers the cost of battery ownership.
So, it’s not surprising that major battery makers have been jumping all over the opportunity to get involved. In fact, Panasonic, LG Energy, and CATL have all joined the list of battery makers that intend to produce the new 4680 cell.
Well, according to the ITDCW report, CBAK Energy Technology will be producing 25Ah/1kW peak power density 4680 cylindrical cells on a large scale, initially completing their development and receiving samples by the end of this year.
In fact, BAK Power, a subsidiary of CBAK Energy Technology, officially unveiled its first 4680 cylindrical battery at the CIBF 2021 exhibition.
Importantly, the head of BAK’s battery cell research and development department, Dr. Wenguang Fan, said that the new cells will be for mid-range and high-end electric vehicles. Moreover, in addition to the increased power density, the company said that fast charging capabilities have been improved.
To add icing to the cake, there are reports surfacing that BAK Batter is also collaborating with several customers on the application and development of large cylindrical batteries.
Why Investors Are Excited
There’s no question, electric vehicles are going to be a major part of transportation in the future. However, quality batteries will be needed to make this happen.
The battery companies that stay ahead of the curve when it comes to technology are likely to become major players in this industry ahead, and that seems to be exactly what’s taking place with CBAK Energy Technology.
As the company continues to work to stay ahead of the competition with regard to battery technology, there will be plenty of demand, revenue, and profitability to look forward to ahead.
The Bottom Line
The bottom line here is simple. CBAK Energy Technology is setting the stage for dramatic growth, playing on the field with companies like Panosonic and LG Energy. As the company continues to work to stay ahead of the competition, the opportunity is only growing, making CBAT stock one that’s well worth watching.