CBAK Energy Technology (NASDAQ: CBAT) has emerged as one of the major movers in the stock market in October so far. The stock has rallied strongly so far and managed to gain as much as 100% this month. The rally continued on Monday as the CBAK stock gained a further 32%.
The CBAK Energy Technology stock has come into the attention of investors in recent days owing to two main factors. The uncertainty in the electric vehicle battery and lithium sectors has been cited as the main factor behind the rally.
CBAK Energy is engaged in manufacturing, commercializing, and distributing lithium-ion rechargeable batteries. The batteries in question are mainly deployed in high power-consuming machines like electric vehicles, power supply machines, and electric tools among others.
CBAK is involved in the manufacturing of as many as five different types of lithium-ion rechargeable batteries. Some of them include the battery pack, high power lithium battery cell, and cylindrical cell among others.
The company’s operations are spread across China, the United States, Israel, Europe, and other nations. However, the lion’s share of the revenues generated by CBAK comes from China. Yesterday, the stock rallied strongly and hit $4.15 a share.
The Possible Trigger
However, it is necessary to go back to the end of last month in order to fully understand the latest rally in the CBAK stock. On September 28 the company that its 32140 large cylindrical tabless batteries cleared the pilot plant and technical tests devised by CBAK.
It is a significant development for the company since it demonstrated that the batteries are a success as far as product research is concerned. It is also necessary to point out that CBAK has also managed to achieve the capability of mass-producing the above-mentioned battery. CBAK is now in the process of planning a mass production line with the aim of delivering the battery far and wide before June next year.
The development of the 32140 large cylindrical tabless batteries has been the company’s central project for many years and it marks the culmination of years of hard work. Hence, it has not come as a surprise that the news has resulted in a strong rally in the stock.
It is a significant improvement on the previous model as well. One cell has 5 times the energy capacity of the previous 26650 model.
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