Kandi Technologies Acquires Controlling Stake in Xinchu to Boost Energy Sector Presence

Kandi Technologies Group Inc (KNDI) strengthens its position in the energy sector with the acquisition of a controlling stake in Hangzhou Xinchu New Energy Technology Co. Ltd. This strategic move aligns with Kandi's goal to establish a footprint in the burgeoning market of AI data center backup power and energy storage. The deal, valued at approximately $2.9 million, marks a significant step for Kandi as it diversifies its portfolio and taps into innovative energy solutions critical for the future of computing infrastructure.

Acquisition Highlights Kandi's Strategic Vision

The acquisition, set to be finalized by July 2026, grants Kandi a 51% controlling interest in Xinchu, a company well-regarded for its development of lithium battery backup systems and battery management solutions targeting data centers and telecommunications sectors. Xinchu’s product offerings include advanced UPS lithium battery packs and a proprietary battery management system. The founding team’s experience across Southeast Asia, the Middle East, and African regions provides a competitive edge in understanding diverse energy needs, making Xinchu an attractive asset within this pivotal industry.

CEO Emphasizes Importance of Reliable Energy Solutions

Kandi's CEO, Chen Feng, underscores the acquisition's significance, highlighting the growing reliance on efficient energy frameworks to support AI computing demands. By integrating Xinchu's innovative products with its established supply chain, Kandi aims to enhance product development, reduce operational costs, and foster growth strategies tailored to meet market needs. This move positions Kandi Technologies Group to capitalize on the escalating demand for reliable energy solutions in an industry expected to expand rapidly on a global scale.