CBAK Energy signs 12 GWh sodium-ion deal in Nanjing
CBAK Energy Technology (NASDAQ: CBAT) has signed an investment agreement with the Nanjing Gaochun Economic Development Zone to develop a 12 gigawatt-hour (GWh) large-cylindrical battery cell plant in Jiangsu Province. The facility is designed to produce either sodium-ion or lithium-ion cells, with the chemistry choice deferred to market conditions. CBAK said it plans to advance the project in the second half of 2027, contingent on securing financing.
The agreement sits alongside a separate, nearer-term expansion at CBAK's existing Nanjing site. The company plans to add 6 GWh of annual capacity there before the end of 2026, taking that facility from 4.5 GWh to 10.5 GWh. Both moves extend a sodium-ion expansion plan the company had previously signalled to investors.
The deal
Revenue estimates in the release are heavily caveated: at full capacity with all output sold, the 12 GWh project is estimated to generate approximately US$712 million to US$741 million in additional annual revenue, benchmarked at current lithium-ion cell market prices. The 6 GWh Nanjing expansion is estimated at US$356 million to US$400 million annually under the same full-utilisation assumption. Neither figure represents contracted sales, and the company's forward-looking statement disclaimer is unusually explicit that actual results may differ materially.
No project cost, equity or debt financing terms were disclosed for either expansion. Customer testing of CBAK's sodium-ion samples is described as underway across residential energy storage, portable power, electric mobility, specialty vehicles and backup power applications, but no named offtakers or qualification milestones were cited.
Chief executive Zhiguang Hu said designing the new lines to support both chemistries would give the company more flexibility to serve customers as demand develops. "We plan to develop the project in phases, with investment guided by financing availability and customer demand," he said.
Market context
Sodium-ion batteries have attracted significant interest as a potential lower-cost, lithium-free alternative for applications where energy density matters less than price and supply-chain resilience. Unlike lithium-ion cells, sodium-ion chemistries do not require cobalt or lithium, reducing exposure to the critical-mineral supply chains that have been a persistent risk factor for battery manufacturers and their investors.
Commercial-scale sodium-ion production is still in its early stages globally. China's CATL has been the most prominent backer of the chemistry, with a first-generation sodium-ion cell unveiled in 2021 and a supply agreement announced with a domestic automotive partner. Several other Chinese manufacturers and a handful of Western startups are pursuing the technology, but the market remains pre-commercial at meaningful volumes, and cost-per-kilowatt-hour competitiveness with mature lithium iron phosphate (LFP) cells is still being tested in the field.
For CBAK, the dual-chemistry design of the planned Nanjing lines reflects a pragmatic hedge: if sodium-ion demand ramps more slowly than expected, the facility can revert to lithium-ion production. That optionality reduces capital risk but also limits the degree to which the 12 GWh agreement can be read as a firm sodium-ion capacity commitment.
Policy and financing path
The project's progression depends on financing that has not yet been arranged, making the second-half 2027 timeline indicative rather than fixed. China's battery manufacturing sector benefits from a range of provincial and national industrial subsidies, though the release makes no specific reference to government incentive support for the Nanjing project.
Investors tracking CBAK will watch for three near-term signals: confirmation of a financing structure for the 12 GWh plant, the completion and qualification outcomes from ongoing customer testing of sodium-ion samples, and whether the existing Nanjing site reaches its 10.5 GWh capacity target by year-end 2026 as planned.