CBAK Energy Highlights Completed Nanjing Phase II Ramp-Up and Accelerating Global Demand Following Investor Conference

DALIAN, China, Sept. 02, 2026 (GLOBE NEWSWIRE) — CBAK Energy Technology Limited (NASDAQ: CBAT) (“CBAK Energy” or the “Company”), a leading China-based lithium-ion battery manufacturer and energy solutions provider, today issued a post-conference business update following its presentation at the Clean Energy Metals Virtual Investor Conference held on August 27, 2026. The update highlights the completed ramp-up of the Company’s Nanjing Phase II facility, the recently announced approximately US$96 million Indian customer order, accelerating demand for Model 32140 cells, progress in AI data center backup power applications and management’s follow-up responses to selected investor questions that could not be fully addressed during the live Q&A because of time constraints.

The responses summarized below are not intended to be a verbatim transcript of statements made during the conference. They include management’s post-conference explanations and supplemental information prepared after the event and, where appropriate, clarifications or corrections to information discussed during the presentation or live Q&A. Accordingly, certain information in this release may not have been stated in the same form during the live session.

Nanjing Phase II Ramp-Up Completed as Model 32140 Output and Demand Accelerate

CBAK Energy commenced production at its Nanjing Phase II facility in December 2025 and completed the facility’s ramp-up by August 2026. As previously disclosed, shipments of the Company’s Model 32140 cells reached approximately 32.55 million units during the first seven months of 2026, up 101.5% year over year, while daily production capacity at Nanjing Phase II reached approximately 177,800 cells in July, up 174.0% from January 2026.

CBAK Energy’s Chief Financial Officer, Jiewei Li, noted that unit production costs were elevated during the initial Nanjing Phase II ramp-up because the production lines had not yet reached their designed capacity. With the ramp-up now complete, the temporary cost pressure associated with that process has subsided and unit production costs have declined. As output stabilizes and the lines are further optimized, the Company expects manufacturing efficiency and unit economics to improve further and expects the Nanjing facility to become profitable.

The more-than-doubling of Model 32140 shipments reflects broad industry recognition of CBAK Energy’s cells, which the Company believes offer industry-leading consistency, low internal resistance, safety and reliability. In 2025, customer demand exceeded the available capacity at Nanjing Phase I, resulting in a substantial backlog and extended wait times for customers seeking the Company’s cells. Following the start of production at Nanjing Phase II, the Company was able to satisfy customer demand that Phase I had been unable to serve, supporting the 101.5% year-over-year increase in Model 32140 shipments during the first seven months of 2026. These product attributes, together with the broader shift from NCM to LFP cells because of LFP’s thermal stability and longer cycle life, are expanding adoption in LEV applications. Given the acceleration in customer demand, particularly from the Indian and Southeast Asian LEV markets, the Company expects Model 32140 shipments and related sales performance to continue growing in 2027.

With the Phase II ramp-up complete, the Company has gained greater flexibility in production scheduling while maintaining stable delivery timelines. Domestic orders are generally shipped within three days of order entry, while export orders are generally shipped within approximately nine days, including the time required for dangerous goods packaging certification. The Company has not experienced production-related delivery delays under its current production schedule.

Approximately US$96 Million Indian Order Highlights Overseas LEV Growth and Long-Term Customer Retention

Mr. Li provided additional details regarding the battery cell order announced on August 25, 2026, from one of India’s leading two- and three-wheeler manufacturers. The order has an estimated value of approximately US$96 million, excluding applicable taxes. The Company expects to complete delivery in 2027, and the order is expected to bring the designated manufacturing facility to full capacity. The Company is also in advanced discussions with another prospective customer that ranks among India’s five largest two- and three-wheeler manufacturers regarding a potentially sizable order for the same cell model. The Company believes a definitive order could be secured in the near term; however, discussions remain ongoing, no definitive order has been placed, and the potential order’s volume, value, timing and terms remain uncertain.

CBAK Energy continues to see strong LEV growth across India, Vietnam and Africa. Orders in India and Vietnam are primarily for cells directly integrated into electric two-wheelers, while demand in Africa is primarily for cells used in two-wheeler battery-swapping applications. India is becoming one of the Company’s fastest-growing overseas LEV markets, and the Company’s Indian customer base is emerging as its largest customer group by geography. The Company expects this customer base to continue expanding.

The Company also provided additional context regarding customer retention. Once a battery cell has been qualified and integrated into a customer’s battery pack, switching suppliers may require additional engineering, testing and requalification. CBAK Energy supports long-term customer relationships through consistent product performance, reliable supply and technical support. As of the date of this release, the Company’s relationships with its five largest customers have lasted an average of approximately five years. This figure reflects the duration of those ongoing relationships to date and does not indicate that the relationships end after five years.

AI Data Center Customer Validation Advances to Module Level

CBAK Energy provided an update on its 26650 HP V2.0 and 26650 PFS2 V2.0 full-tab LFP cells developed for battery backup unit (“BBU”) and uninterruptible power supply (“UPS”) applications in AI data centers. As previously announced, samples are being evaluated by prospective customers, and multiple customers have advanced to module-level validation.

Mr. Li said the Company’s cells are currently undergoing testing and validation with certain well-known AI data center operators and described progress to date as satisfactory.

The Company also highlighted key technical features of the products. The full-tab architecture is designed for high-rate discharge applications, while lower internal resistance helps reduce heat generation during sustained high-rate output. Under specified internal test conditions, the 26650 HP V2.0 and 26650 PFS2 V2.0 cells recorded internal resistance below 3 mΩ and achieved maximum discharge power of approximately 260 W and 310 W, respectively. The Company believes these features are well suited to the high-rate discharge and thermal-management requirements of BBU and UPS applications in AI data centers.

Company Clarifies Form F-3 Filing and Current Financing Strategy

CBAK Energy also clarified that its Form F-3 registration statement filed on August 26, 2026, does not represent an additional US$500 million of shelf registration capacity. Following the Company’s redomiciliation to the Cayman Islands and transition to foreign private issuer status, the Form F-3 carries forward the Company’s previously registered US$500 million shelf capacity under its prior Form S-3 registration statement. No securities were offered or sold under the prior Form S-3, and the filing of the Form F-3 does not itself constitute an offer or sale of securities.

Management and the Board of Directors believe the Company is materially undervalued at its current trading price, which does not reflect its business fundamentals or growth prospects. At current price levels, the Company does not view a dilutive equity financing as prudent or fair to public shareholders who have placed their trust in the Company. Subject to the Company’s capital requirements, market conditions and the Board’s fiduciary duties, the Company currently does not expect to pursue an equity issuance unless and until its trading price recovers to a level that management and the Board believe more fairly reflects the Company’s value.

The Company currently relies primarily on bank borrowings in mainland China to support its financing needs. These borrowings generally carry annual interest rates in the 2% to 3% range. The Company believes these favorable rates reflect lenders’ understanding of and confidence in the quality of its operating business, together with the strength of its established banking relationships, providing a low-cost source of capital without immediate equity dilution.

About CBAK Energy

CBAK Energy Technology Limited (NASDAQ: CBAT) is a leading China-based high-tech enterprise engaged in the development, manufacture and sale of high-power lithium-ion and sodium-ion batteries, as well as materials used in the manufacture of high-power lithium batteries. The Company’s battery cell production, research and development, and sales operations are located in Nanjing, Dalian and Shangqiu. The Company also operates battery cell research and development centers in both Nanjing and Dalian. Its raw materials operations, including production, research and development, and sales, are headquartered in Shaoxing. The Company’s products and solutions serve electric vehicles, light electric vehicles, energy storage systems and other high-power applications. In January 2006, CBAK Energy became the first Chinese lithium battery manufacturer to be listed on the Nasdaq Stock Market.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts are forward-looking statements, including statements regarding the expected profitability, manufacturing efficiency, unit economics, production utilization and other anticipated benefits of the completed Nanjing Phase II ramp-up; expected demand for, shipments and sales performance of Model 32140 cells in 2027; continued demand growth in India, Southeast Asia and Africa and the expected expansion and relative size of the Company’s Indian customer base; the timing and fulfillment of the approximately US$96 million Indian customer order and its expected impact on production capacity utilization; the outcome, timing, volume, value and terms of the Company’s discussions with another prospective Indian customer and whether those discussions result in a definitive order; the duration and continued development of customer relationships; customer testing, validation and qualification of the Company’s AI data center backup power products, potential customer demand for such products and whether testing and qualification result in commercial orders; management’s and the Board’s assessment of the Company’s trading price; the Company’s intentions regarding equity financing and the circumstances under which it may consider an equity issuance; and the availability, cost and continued use of bank borrowings or other financing sources.

These forward-looking statements are based on the Company’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Such risks include production-line performance and utilization; manufacturing yields, efficiency, unit costs, product quality and consistency; whether the Nanjing facility achieves or sustains profitability; changes in customer demand, product adoption, order timing or order volumes; the Company’s ability to maintain the performance, consistency, low internal resistance, safety and reliability of its cells; order modifications, delays or cancellations; the Company’s ability to fulfill the approximately US$96 million Indian customer order and translate it into production, shipments, revenue and customer payment; the possibility that the prospective Indian customer discussions do not result in a definitive order, or result in an order with a smaller volume or value, different terms or later timing than expected; the outcomes of customer testing, validation and qualification and whether they result in commercial orders; the ability to maintain long-term customer relationships; the availability and cost of raw materials and other production inputs; supply-chain and logistics conditions; customer concentration and credit risk; foreign exchange fluctuations; competition; changes in the Company’s capital requirements, financing plans or market conditions; the possibility that the Company’s trading price does not increase or does not reach a level that management and the Board consider reflective of the Company’s value; the possibility that the Company may determine that an equity financing is necessary or advisable at a time or price different from current expectations; the availability, terms and interest rates of bank financing in mainland China; macroeconomic, geopolitical and regulatory conditions; and other risks described in the Company’s filings with the U.S. Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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