By Sam Boughedda
Investing.com — Kandi Technologies Group Inc (NASDAQ:KNDI) announced Tuesday that its subsidiary Jiangxi Province Huiyi New Energy has started mass production of its lithium iron phosphate battery.
Kandi Technologies shares rose 10% on the news, although they are still down 47% year-to-date.
The company said that its wholly-owned subsidiary has "now achieved a breakthrough in the energy density of its LFP 18650 battery." Energy density is how much energy a battery has in proportion to its weight.
“We are delighted by Huiyi’s technical breakthrough and production achievement,” said Hu Xiaoming, chairman and CEO of Kandi Technologies.
“As technology-leading LFP batteries move into the market, we believe Kandi and Huiyi can harness synergies based on our complementary strengths in R&D and target markets. We are confident that Kandi can strengthen its market position in the supply chains of various electric vehicles as we integrate Huiyi into our operations,” added Xiaoming.
At the start of December, Noble Capital initiated Kandi with an outperform rating and $5 price target. Analyst Michael Heim told investors at the time that he believes the company serves a unique niche in the electric vehicle market.