CBAK Energy Technology, Inc. (NASDAQ: CBAT), a lithium-ion battery manufacturer and electric energy services provider in China, has acquired a majority stake in Zhejiang Hitrans Lithium Battery Technology Co., through CBAK’s subsidiary, Dalian CBAK Power Battery Co., Ltd.

Hitrans is a lithium-ion battery material supplier based in China and focuses on the manufacturing and sale of NCM precursors and cathode materials. The firm has annual production capacity of 12,000 tons of NCM precursors and 8,000 tons of cathode materials with projections to expand to 50,000 tons over the next two years.

The purchase is intended to enhance the supply chain and competitive advantage in the high-power lithium battery market for CBAK.

“By building a tighter relationship with Hitrans, which has also been a critical supply chain partner of our Company, we believe this offers CBAK Energy a unique vantage point to cope with rising challenges from supply chain constraints in the short run,” added Yunfei Li, CEO at CBAL. “In the longer run, we hope this deal will unlock incredible potential for both companies to seize and tap into growing opportunities available in the burgeoning electric vehicle industry.”