Kandi Technologies Group, Inc. announced the establishment of a wholly-owned subsidiary for its battery swapping services: China Battery Exchange Technology Co., Ltd.

By establishing the China Battery Exchange Technology Company, Kandi can better monetize its dozens of patents in the field of battery swap systems. The new Company can also attract strategic investors to participate across the whole sector value chain, including battery swapping services and used battery recycling.

Kandi Chairman and CEO Hu Xiaoming commented: “Kandi is a pioneer in the battery swap concept. As the inventor of the ‘vehicle/battery separation’ battery swap model, we have overcome many obstacles in the development of our company due to past controversy around this concept. Fortunately, on April 23, 2020, the Ministry of Finance and other three Ministries in China jointly issued a paper strongly supporting and encouraging the ‘vehicle/battery separation’ battery swapping model.

In a 2020 Government Work Report, for the first time the battery swapping station is included in infrastructure construction that promotes renewable energy vehicles. We are gratified to see the government fully support this model. By establishing the China Battery Exchange Technology Company, we believe Kandi is even better positioned to reignite growth in the near future.”

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States and Fengsheng Automobile Technology Group Co., Ltd (formerly known as Kandi Electric Vehicles Group Co., Ltd., the “Affiliate Company”). Kandi Vehicles has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.

In 2013, Kandi Vehicles and Geely Group, China’s leading automaker, jointly invested in the establishment of the Affiliate Company in order to develop, manufacture and sell pure electric vehicle (“EV”) products. Geely Group (including its affiliate) and Kandi Vehicles currently holds 78% and 22% of the equity interests in the Affiliate Company, respectively. The Affiliate Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.