Power is shifting in real time, and the contest runs through lithium batteries. Beijing’s latest push meets Washington on its own turf, trading speeches for factories and incentives for speed. Supply chains tighten, policies harden, and rivals move closer than ever. This plan chases scale without the usual delays, while it tests how far cooperation can stretch inside a rivalry. If it succeeds, the rules of clean tech won’t just change—they’ll be rewritten.
A partnership that reframes the stakes
Two names anchor the plan: Kandi Technologies and CBAK Energy, both listed in the United States. They join forces while tensions peak, choosing to build capacity closer to buyers. One project assembles packs soon, and a second, more ambitious project, manufactures cells later.
Each venture stays independent, with ownership tailored to its mission and risk profile. The timing follows export restrictions on critical minerals that can jar supply chains worldwide. Local production pursues U.S. clean-energy incentives under the Inflation Reduction Act, while it also reduces transit delays and regulatory uncertainty.
The approach is pragmatic, because proximity shortens cycles and lifts service quality. It also turns a trade fight into an operational hedge, useful when rules change suddenly. In this frame, lithium batteries become not only components, but strategic assets that anchor jobs, logistics, and bargaining power.
Lithium batteries and a two-plant roadmap in the United States
The near-term site assembles modules and packs, led by Kandi with a 90 percent stake. Designs target off-road vehicles, golf carts, and recreational vehicles, where reliability and quick turnaround matter. Candidate locations remain under review, because utility access, workforce, and permitting shape speed, cost, and compliance.
The longer-term site makes cells, directed by CBAK with a similar 90 percent ownership. At first, cells ship from overseas facilities while U.S. capacity ramps in stages. This bridge keeps customers supplied, and it also allows qualification, safety testing, and tooling decisions to mature cleanly.
Localizing packs and cells trims tariff exposure, logistics miles, and time-to-market. It also aligns designs with U.S. content rules that unlock federal and state incentives. As a result, lithium batteries move from vulnerable imports to platform technology built near the markets that use them most.
Demand signals and the $18–27 billion niche
The North American market for off-road vehicles, golf carts, and recreational vehicles stands near eighteen billion dollars in 2024. Projections reach twenty-seven billion dollars by 2030, a strong pull for investment. That growth rewards high energy density, safe chemistries, and dependable service, because downtime costs margins.
Buyers weigh range, charging convenience, and total lifetime cost, then they expect flexible service agreements. Because fleets scale fast, suppliers must ship quickly, while they balance inventory and warranty risk. Local assembly helps engineers tune packs to duty cycles, terrain, and weather without long feedback loops.
These signals build a clear business case for capacity, since demand is tangible and diverse. When incentives and procurement targets align, procurement cycles shorten and contracts scale. Within that momentum, lithium batteries secure predictable orders, and the factories gain learning curves that reinforce cost advantages.
Lithium batteries capacity race and timelines to 2026
CBAK targets seven point six gigawatt-hours of capacity by late 2025, according to company plans. New Southeast Asia facilities are expected to start operating in 2026, which diversifies sourcing. This phasing spreads capital needs, while it keeps shipment continuity during facility commissioning and workforce training.
Diversification hedges changing trade policy and material bottlenecks across nickel, manganese, LFP, and graphite supply. Domestic content rules still matter, so planners model thresholds that qualify for credits. Operations teams chase high yield and OEE, because better throughput lowers cost without cutting safety or quality.
Kandi’s chief executive, Feng Chen, frames the project as a North American expansion built on localization. The aim is agility and closer customer service, while incentives improve economics. Folded together, the plan positions lithium batteries for faster design refreshes, smoother certification paths, and sturdier supplier relationships.
Risks, politics, and a playbook for resilience
Facilities face siting hurdles, environmental reviews, grid connections, and workforce pipelines that take time. Communities ask for transparency on emissions, recycling, and water, and that scrutiny is healthy. Because timelines slip easily, partners should stage milestones carefully, and set governance that resolves issues quickly.
Policy risks persist, including export controls, investment screening, and national security reviews on critical technologies. To bridge risk, cells ship initially from overseas plants while U.S. lines mature. That choice contrasts with overbuilt megaprojects that stalled in China, and it favors measurable, market-driven execution.
Practical steps include supplier qualification, responsible sourcing, and end-of-life plans that meet recycling rules. Clear reporting keeps auditors comfortable, and it also builds community trust over time. Within that discipline, lithium batteries projects convert pressure into progress, because good governance makes innovation stick.
What this U.S.–China supply move signals next for industry
This blueprint will test whether localized manufacturing can defuse friction while rewarding innovation. If the sites launch on schedule, buyers gain shorter lead times, steadier service, and better compliance. Should policy winds shift again, onshore capacity still holds value as an insurance policy. With lithium batteries central to mobility and storage, this playbook may become a template other suppliers adopt, adapting speed to the realities of geopolitics.