China BAK Battery, Inc. (Nasdaq: CBAK), a global manufacturer of lithium-based battery cells, announced that the Company’s Shenzhen-based subsidiary entered into a strategic cooperation program for electric vehicle (“EV”) development with Hua-chuang Automobile Information Technical Center Co., Ltd. (“HAITEC”), a subsidiary of Yulon Group, Taiwan’s largest automaker.
In June 2011, China BAK’s Shenzhen facility supplied cylindrical battery cells to HAITEC to power Dongfeng-Yulon's pure electric vehicles, which were delivered to the public transportation authority of the city of Hangzhou, China. Under the new strategic cooperation program, the Company and HAITEC will focus on developing EV battery packs and high capacity battery products. The battery cells manufactured for HAITEC under this program, a result of two years' research and development by BAK Canada technical team, are cylindrical battery cells produced in the Company’s Shenzhen facility.
HAITEC will cooperate with China BAK’s Shenzhen facility to benefit from the compatibility between its cylindrical cells’ material system and battery design advantages. At the same time, the Company intends to continue to develop its high-power lithium batteries for other EV opportunities at its Tianjin facility.
“We are pleased to advance our cooperation with HAITEC by entering into a new strategic program, demonstrating the high-quality and stable performance of our products delivered last year. We believe our joint cooperation to develop advanced battery products used in electric vehicles will contribute to a mutually beneficial long-term relationship in the rapidly growing EV segment for both China BAK and HAITEC,” commented Mr. Xiangqian Li, CEO of China BAK Battery, Inc.
