CBAK Energy's Q2 2025: Unraveling Contradictions in Production Capacity and Market Demand

Capacity expansion and production goals, 40135 cell production and market demand, Nanjing expansion and equipment challenges, production capacity and expansion timeline, 46 series cell production timeline are the key contradictions discussed in CBAK Energy Technology Inc.'s latest 2025Q2 earnings call.



Transition in Battery Production:
- CBAK Energy reported a decline in net revenues to $40,520,000, down 15% year-over-year, primarily due to the strategic transition from small format battery model 26,000 to larger model 4,135.
- The decline is attributed to the time required for the Dalian facility to transition and ramp up production of the new model, impacting overall consolidated results.

Supply Constraints and Facility Expansion:
- The Nanjing facility, producing model 32140 cells, is operating at full capacity, unable to meet additional demand due to surging demand and delayed completion of phase two expansion.
- The delay is mainly due to issues with equipment suppliers, causing about a couple of months' delay, but expected to be resolved by year-end.

Heitron's Performance and Market Expansion:
- Heitron reported a 59.36% increase in net revenues to approximately $19,430,000, with net losses narrowing by 32.02%.
- The improvement is due to Heitron's efforts in expanding its market presence, securing new customers, and benefiting from a decline in raw material prices.

Strategic Investment and Long-term Vision:
- CBAK Energy has temporarily paused its Malaysian project due to ongoing US-China tariff negotiations, prioritizing the completion of the 4135 and 031940 projects initially.
- The company remains focused on its long-term strategy of establishing battery cell production capacity in the US, exploring partnerships for cost-effective solutions.