Kandi Technologies Acquires 51% of Xinchu for RMB20M Entry into AI Data Center Backup Power
KNDI•Kandi Technologies will pay RMB20 million (US$2.9 million) to acquire a 51 percent controlling stake in Hangzhou Xinchu New Energy, closing in July 2026. The deal grants Kandi entry into AI data center backup power, leveraging Xinchu’s lithium battery UPS systems and intelligent BMS platform for high-rate discharge and millisecond response.
1. Acquisition Details
Kandi Technologies has signed investment agreements to acquire a 51% controlling stake in Hangzhou Xinchu New Energy for RMB20 million (US$2.9 million), with the transaction expected to close in July 2026. Xinchu specializes in lithium battery backup power and battery management systems for data centers and telecom base stations.
2. Strategic Expansion into AI Data Center Market
The acquisition positions Kandi in the rapidly growing AI data center backup power segment, where demand for millisecond-level response time and high-rate discharge lithium battery solutions is surging. Xinchu’s UPS packs and proprietary BMS platform address power quality and reliability needs in high-density GPU computing environments.
3. Synergies and Growth Outlook
Kandi plans to leverage its global supply chain and capital resources to support Xinchu’s product development and market expansion, aiming to broaden offerings into higher-margin software and services. The combined capabilities enhance Kandi’s exposure to critical energy infrastructure underlying AI compute deployments.
