Benzinga | Mar 15, 2021 09:17AM EDT

CBAK Energy Shares Move Higher; Co Says Partners With European Hydrogen Energy Giant To Promote Hydrogen Fuel Cell Development

CBAK Energy Technology, Inc. (NASDAQ:CBAT) ("CBAK Energy," or the "Company"), a leading lithium-ion battery manufacturer and electric energy solution provider, today announced that it has signed a memorandum of cooperation (the "Cooperation") with a leading European hydrogen energy group with 100 years of operation history (the "Hydrogen Energy Company") to promote the development of hydrogen fuel cells.

As part of the Cooperation, both parties will be able to capitalize on each other's competitive advantages in technological innovation and industrial resources as well as exchange ideas on industry development. At the same time, both parties will be able to actively explore more opportunities to collaborate on high-quality projects going forward, including but not limited to such areas as hydrogen fuel cell production, hydrogen fuel cell stack, hydrogen transportation, hydrogen storage, hydrogen refueling stations, and more. The signing of the Cooperation reflects the mutual belief between both parties that it is a win-win arrangement which will help to advance the broader technological and industrial development of society over the long run.

Compared to diesel fuel, the advantages of hydrogen fuel cells include low noise, zero emissions, and high energy conversion rates. Such advantages help to improve the energy structure, reduce pollution, decrease the greenhouse effect, and contribute to the sustainable development of society. In recent years, as the Chinese government has placed a greater emphasis on the development of hydrogen fuel cells for the automobile industry, hydrogen fuel cells have become an increasingly important part of the Chinese government's strategy to transform automobile power systems and upgrade new energy vehicles. According to an analysis by the China Hydrogen Energy and Fuel Cell Industry Alliance, hydrogen energy will become an increasingly important component of China's overall energy system. As such, by 2050, it is expected that the demand for hydrogen will reach 60 million tons, the number of hydrogen refueling stations will be more than 10,000, and the number of fuel cell vehicles produced annually will reach 5 million. According to research on China's hydrogen fuel cell industry by the Intelligence Research Group, the hydrogen fuel cell industry is still at the early stage of commercial operations. In addition, over the next ten years, as unit costs continue to fall, the industry is expected to grow by more than one hundred times its current size. By 2030, the size of the market for fuel cell vehicles is expected to reach RMB500 billion, while the size of the market for automotive fuel cells is expected to reach RMB120 billion.

Mr. Yunfei Li, Chief Executive Officer of CBAK Energy, commented, "As a result of the great importance placed upon the transition to more sustainable forms of energy and carbon neutrality by the Chinese government, there is currently an unprecedented number of development opportunities in the market for hydrogen fuel cells. By working together closely, the Hydrogen Energy Company and CBAK Energy will enhance their industry leadership positions as well as attain new achievements in terms of providing basic research, tackling core technologies, and aggregating industrial resources. We are confident that this Cooperation will become a benchmark case study on hydrogen fuel cell cooperation in China, further promoting the low-carbon revolution in energy usage, transformation and upgrade of China's energy structure, and sustainable development of the country's larger economy."