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CBAK Energy to Acquire Majority Stake in Chinese Lithium Battery Material Supplier Zhejiang Meidu
Tuesday 27 July 2021

China-based lithium-ion battery manufacturer CBAK Energy Technology, Inc's (NASDAQ: CBAT) Dalian CBAK Power Battery Co., Ltd subsidiary has entered into a framework agreement to acquire a majority stake in Chinese lithium-ion battery material supplier Zhejiang Meidu Hitrans Lithium Battery Technology Co, the company said.

CBAK Power will acquire 81.56% of the equity interests of Hitrans currently held by Zhejiang Meidu Graphene Technology Co. and Hitrans's management shareholders for an aggregate consideration of approximately RMB 158.74m (approximately USD 24.5m).

The transaction is subject to certain closing conditions, and CBAK Power aims to complete the acquisition in 3Q21.

Hitrans was established in December 2015 to engage in the research and development, production, as well as sales of ternary precursors and anode materials.

Additionally, Hitrans was one of the key suppliers of the company in fiscal 2020.

Through the acquisition, the company expects to further strengthen its supply chain and competitiveness in the high-power lithium battery market.

CBAK Energy Technology, Inc. is a high-tech enterprise in China engaged in the development, manufacturing, and sales of new energy high power lithium batteries.

The applications of the company's products and solutions include electric vehicles, light electric vehicles, electric tools, energy storage, uninterruptible power supply, and other high-power applications.

In January 2006, CBAK Energy became the first lithium battery manufacturer in China listed on the NASDAQ Stock Market.

CBAK Energy has multiple operating subsidiaries in Dalian and Nanjing, as well as a large-scale R and D and production base in Dalian.
Date Published: 27/07/2021