Here is a piece of trivia that even lithium aficionados might not know. In January of 2005, CBAK Energy Technology (NASDAQ:CBAT) became the first Chinese lithium battery company to get listed in the United States. Of course, you can still trade CBAT stock today. Importantly, it has even made some big moves in 2020.
As its corporate profile notes, CBAK Energy Technology broadly engages in the sale of high-power lithium batteries for electric and hybrid vehicles, as well as for electric tools and energy storage.
Clearly CBAK has been, and still is, an early player in the lithium production space. It is only in recent years that market participants have begun to really appreciate the importance of lithium.
As you may know, lithium is often essential for the production of batteries for electric cars and bicycles, electric tools and other products. If CBAK Energy Technology can set itself apart from its competitors in the lithium battery production niche, then CBAT stock could be a worthy name to buy and hold.
CBAT Stock at a Glance
The first thing you might want to pay attention to is its market capitalization of around $200 million. Suffice it to say that this is not a huge company. Yet, this should not be a problem as it means that there is room to grow as the electric vehicle market expands.
Next, let’s take a look at the price action of CBAT stock. This one is not for the timid as it has a 52-week range of 36 cents to $4.98. Clearly, CBAT is capable of making outsized moves, so you probably won’t want to take a gigantic position in this one.
Speaking of outsized moves, CBAT rocketed up from less than $1 in mid-September to nearly $5 in early October. Thankfully, CBAT stock has pulled back somewhat.
As a result, you can start to accumulate the shares at a lower price point now.
Passing the Test
A development of significance took place in late September as CBAK Energy Technology announced the release of a large-sized cylindrical tabless battery which “has officially passed its technical and Pilot Plant tests.”
Consequently, the company is planning to construct a new production line for this battery. Mass product delivery for the battery is slated for the first half of 2021.
Known as the 32140 model, this battery will replace the 26650 model. For the newer model, the energy capacity of a single cell will be five times greater.
Moreover, there will be a 25% increase in energy density along with a 20% reduction in cost per kilowatt.
Sometimes, Bigger Is Really Better
For CBAK Energy Technology CEO Yunfei Li, there is no denying that size is a factor:
“Large-sized cylindrical battery becomes very competitive in electric vehicle and energy storage market according to its high energy density, extremely low internal resistance and material cost and high durability. In the meantime, CBAK is developing more new series of large-sized batteries with better performance and lower cost for the sake of the need of the market.”
Contributing to the “better performance and lower cost” is the tabless design for the new battery. You might have heard about tabless battery designs as a buzzword, but they are much more than that.
Much of the beauty of tabless batteries comes in the nitty-gritty details. For instance, traditional lithium-ion batteries have tabs. These tabs create more resistance, generating more heat and making energy transfer less efficient. CBAK Energy Technology has introduced its new 32140 model to solve that problem. The new model reduces internal battery resistance, thereby reducing the heat problem.
So for these new batteries, it is truly about both size and efficiency. CBAK Energy Technology and CBAT stock are leading the way in all of these areas.
The Takeaway
There is a lot riding on the introduction of this potentially game-changing lithium battery technology. This represents a big step forward for CBAK Energy Technology, and the rest of the industry.
What should you do now? Before the share price moves higher, capitalize on the pursuit of innovation with a stake in CBAT stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
