Shares of CBAK Energy (NASDAQ:CBAT) stock are blasting off to start Thursday morning, but not due to anything directly related to the company.
The reason for the rise is because of a report published on Wednesday from cnEVpost, a website focused on electric vehicle news in China. In the article, it states that Nio (NYSE:NIO) will begin making vehicle models with “lower-cost lithium iron phosphate batteries to expand its consumer base.”
That said, cnEVpost says word of this news comes from a WeChat account that closely follows the Chinese auto industry. It is also reported that Nio contracted a production line of these specific batteries from Contemporary Amperex Technology (CATL), China’s largest auto lithium-ion battery maker.
So, where exactly does CBAK Energy — and CBAT stock — come into all of this? Well, the firm is one of the leading China-based companies focused on the researching, developing and manufacturing of high-power lithium-ion batteries. In turn, it seems investors are thinking that this news with Nio could later provide some business for CBAK.
CBAT stock was up 21.5% as of Thursday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.
