China plans 12 GWh project to mass-produce large cylindrical sodium-ion cells

Chinese battery maker CBAK Energy plans to build 12 GWh of annual battery capacity in Nanjing, with new lines capable of producing large cylindrical sodium-ion or lithium-ion cells. The Nasdaq-listed company has signed an investment agreement with the Nanjing Gaochun Economic Development Zone for the project, which will also include research and development as well as battery module and pack integration. CBAK plans to advance the 12 GWh project in the second half of 2027, although construction and production will depend on securing financing, customer demand and project readiness. The company has not disclosed the project’s investment cost. The expansion comes as CBAK tests sodium-ion battery samples with customers for residential and portable energy storage and electric mobility. Its cells are also being evaluated for specialty vehicles, automotive start-stop systems and backup power. A key feature of the planned factory is manufacturing flexibility. CBAK says its production lines will be designed to make either large cylindrical sodium-ion or lithium-ion cells, allowing it to choose the chemistry according to market conditions and customer demand. The company estimates the 12 GWh project could generate RMB4.8 billion to RMB5 billion ($712 million to $741 million) in annual revenue if it operates at full capacity and sells all its output. That estimate, however, is based on current lithium-ion cell market prices and does not represent contracted sales. Actual revenue will depend on factors including product mix, pricing, manufacturing yields and capacity utilization. The sodium-ion project is separate from another expansion already planned at CBAK’s existing Nanjing plant. The company is targeting an additional 6 GWh of annual production capacity there by the end of 2026. The facility currently has 4.5 GWh of annual capacity for its Model 32140 cylindrical cells. Adding 6 GWh would more than double the site’s capacity to 10.5 GWh annually. Cylindrical capacity ramps higher CBAK is considering installing two production lines for its larger Model 60150 cells as part of the 6 GWh expansion. Strong demand for its existing Model 32140 cells, however, could lead it to install one line for each cell format instead. At full utilization with all output sold, CBAK estimates the additional 6 GWh could generate RMB2.4 billion to RMB2.7 billion ($356 million to $400 million) in annual revenue. “The 6 GWh expansion would more than double annual cell capacity at our existing Nanjing facility and help us meet strong demand for large cylindrical cells,” said Zhiguang Hu, Chief Executive Officer of CBAK Energy. “The 12 GWh investment agreement advances our plans for sodium-ion production. Designing the lines to produce lithium-ion cells as well would give us more options to serve customers as demand develops in both markets.” Combined, the two plans represent 18 GWh of additional annual cell capacity, although they are at different stages and the larger 12 GWh project remains dependent on financing. CBAK currently develops and manufactures both lithium-ion and sodium-ion batteries, with operations serving electric vehicles, light electric vehicles, energy storage systems and other high-power applications.Get the latest in engineering, tech, space & science - delivered daily to your inbox.With over a decade-long career in journalism, Neetika Walter has worked with The Economic Times, ANI, and Hindustan Times, covering politics, business, technology, and the clean energy sector. Passionate about contemporary culture, books, poetry, and storytelling, she brings depth and insight to her writing. When she isn’t chasing stories, she’s likely lost in a book or enjoying the company of her dogs.