Shares of CBAK Energy Technology (NASDAQ:CBAT) rose 45.5% in January, according to data from S&P Global Market Intelligence. The battery company’s stock soared early in the month following a report that electric vehicle (EV) specialist NIO was gearing up to launch new models using lithium iron phosphate batteries.
Chinese EV industry news website cnEVpost published a report on Jan. 6 indicating that NIO was planning to introduce new, budget-focused vehicle lines that would use lower-cost lithium iron phosphate batteries. NIO is reportedly turning to CATL (China’s largest auto lithium-ion battery company) to supply the batteries for the upcoming vehicles. However, the announcement prompted speculation that there could be increased demand for CBAK’s technologies, and the company did announce a potentially significant partnership later in the month.
CBAK published a press release on Jan. 25 announcing