Clean-Fuel Aficionados Should Check Out High-Powered CBAK Energy Stock

Advertisement

Chinese lithium rechargeable battery-maker CBAK Energy Technology (NASDAQ:CBAT) has been around for nearly 20 years, but 2021 could be a very special year for CBAT stock holders, as the green-energy movement is well under way.

An image of the outline of a battery reflecting a blue sky with light clouds.

Source: petrmalinak/ShutterStock.com

Interestingly, CBAK Energy has the distinction of being China’s first lithium-battery company to get listed for trading in the U.S., an event that took place in January of 2005.

The company is deeply committed to developing clean power solutions for a wide range of vehicles and other products. These include not only electric cars, but also electric bicycles, hybrid electric vehicles and even electric tools.

Not everyone has experience investing in Chinese companies, so it’s understandable if you need more information before you consider investing in CBAT stock. Therefore, let’s see if we can uncover the outstanding potential of this fascinating alternative-energy superstar in the making.

CBAT Stock at a Glance

Before the market became fascinated with electric vehicles this year, CBAT was truly a penny stock. We can say this because a penny stock is defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.

If you can believe it, there was a time in 2020 when CBAT stock traded for the ultra-low price of 36 cents per share. Now, that would definitely count as a penny stock. However, CBAT was destined to break through that all-important $5 threshold this year.

Nov. 16 was a very special day for CBAT stockholders because the stock attained a 52-week high of $11.40. At long last, the trading community saw the true value of CBAK Energy and its vision of cleaner, more efficient batteries.

Yet, there was no need to chase CBAT stock at its highest point. At the close of the market on Nov. 24, the shares settled at $7.12. Thus, patient traders have been given another opportunity to own this stock at a more favorable price point, possibly before the next leg up.

Big Batteries, Healthy Market

Not long ago, J.P. Morgan analysts released a positive note on China’s new energy vehicles sector. Over the next five years, they’re expecting 43% annual growth for the sales of electric cars, plug-in hybrids and fuel-cell vehicles.

Of course, we can reasonably expect that many of these vehicles will need batteries. This puts CBAK Energy in a solid position as an early and ambitious battery supplier in a healthy and growing Chinese electric-vehicle market.

To this end, the company announced the release of a large-sized cylindrical tabless battery which “has officially passed its technical and Pilot Plant tests.” This battery is known as the 32140.

Compared to the previous 26650 model, the 32140 offers an eye-popping five-fold increase in energy density. Moreover, it provides a 20% reduction in cost per kilowatt.

China at the Center

Perhaps you need more convincing that a Chinese company like CBAK Energy can excel in the global lithium-battery market.

If so, then consider this. Last year, China was home to 73% of the global lithium-cell manufacturing capacity. At 12% of the global capacity, the U.S. was far behind in second place.

In other words, China remains at the center of the world’s lithium-battery market. And, this market won’t slow down anytime soon. By 2025, the global lithium-cell manufacturing capacity is expected to expand to a mind-boggling 1,211 gigawatt-hours.

Moreover, Chinese lithium production in 2018 was 8,000 metric tons. That’s nearly 10 times the U.S.’s lithium production. Clearly, now and in the coming years, CBAK Energy is a “right place, right time” company for the clean-fuel movement.

The Takeaway

It’s true that CBAT stock didn’t come to many traders’ attention until this year. Nonetheless, CBAK Energy is an early mover in the Chinese lithium-battery market.

And since CBAT stock has come off of its 52-week high price, investors can take a position in the stock without feeling like they’re chasing.

CBAK Energy currently has an “A” rating in my Portfolio Grader.

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. 


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/clean-fuel-aficionados-should-check-out-high-powered-cbat-stock/.

©2024 InvestorPlace Media, LLC