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 that it had signed a one-year contract with Chengdu Raja New Energy Automotive Technology to provide lithium-ion batteries for vehicles used in the company’s food delivery and logistics projects. After years of relatively weak performance, CBAK stock has skyrocketed over the last several months on signs of potential opportunities in the EV market. The company’s share price is now up roughly 1,110% over the last year.
CBAK stock has continued to make gains early in February’s trading. The company’s share price is up roughly 10% in the month so far.
CBAK now has a market capitalization of roughly $644 million. The overall EV space looks primed for huge growth over the next decade and beyond, but whether the company will be able to continue securing wins in an increasingly competitive space remains speculative.