CBAK Energy advances 26650 LFP cells for AI data centre backup power
CBAK Energy Technology (NASDAQ: CBAT) has reported that samples of its newly developed 26650 HP V2.0 and 26650 PFS2 V2.0 full-tab cylindrical lithium iron phosphate (LFP) cells are now in the hands of customers for evaluation, with several accounts progressing to joint module-level validation. The Dalian-based battery manufacturer is positioning the cells specifically for battery backup unit (BBU) and uninterruptible power supply (UPS) applications in AI data centres, where rack-level power density is climbing sharply.
The technical programme was led by Huabin Dai, Deputy General Manager of subsidiary Dalian CBAK Power Battery and R&D lead for the project. Dai said the 15-month effort involved dozens of material-formulation cycles and more than 20 validated process routes. "For rack-level BBU and UPS applications, high-rate discharge, long service life, and thermal safety must be achieved together," he said.
Technical design
The central design claim is CBAK Energy's full-tab architecture, which the company says it has developed over seven years. Expanding the current-carrying area and reducing ohmic resistance, the design is reported by the company to achieve internal resistance of approximately 2 to 3 milliohms per cell, compared with approximately 6 to 7 milliohms for conventional multi-tab cylindrical cells. Under internal test conditions, the HP V2.0 achieved a maximum discharge power of 260 W; the PFS2 V2.0 reached 310 W. CBAK Energy estimates these characteristics could reduce thermal-management costs in equipment rooms by 5 to 10 per cent and extend system service life by 10 to 15 per cent relative to multi-tab alternatives. The company was careful to note in its release that all figures derive from internal laboratory conditions and that real-world results will vary with system design and operating environment.
The company also cites format-selection rationale: compared with smaller 18-series and 21-series cylindrical cells, 26650 cells provide more than 20 per cent higher capacity per unit, which the company says can reduce total cell count by approximately 20 per cent for an equivalent pack and improve assembly efficiency by around five percentage points. The existing manufacturing ecosystem around the 26650 form factor, which has more than two decades of production history, is presented as reducing integration risk for OEM customers.
On the path to commercialisation, CBAK Energy says international certification work covering applicable UL and CE requirements is underway, long-term supply agreements with key materials partners have been secured, and the company is evaluating overseas supply-chain options to reduce trade and logistics exposure. The company is working alongside system integrators and UPS original equipment manufacturers to co-develop application-specific solutions.
Market context
AI data centre infrastructure is generating intense demand for reliable backup power as rack densities driven by GPU clusters push thermal and electrical loads well beyond the profiles assumed in legacy UPS and BBU designs. The pivot to LFP chemistry for stationary storage is well established in the energy-storage market more broadly; LFP's relatively lower energy density is acceptable for fixed installations where the chemistry's thermal stability and cycle life are the more critical parameters.
CBAK Energy competes in a space that includes established battery manufacturers such as CATL and BYD on the Chinese side, alongside international suppliers serving the data centre UPS market. For AI data centre operators weighing backup power, the procurement calculus is shifting: total cost of ownership over a multi-year cycle, including cooling burden and replacement cadence, is receiving greater weight than upfront cell cost alone. CBAK Energy's dual-track strategy, pairing smaller high-rate cylindrical cells for backup power and industrial tools with larger cells for high-capacity energy storage, is intended to address both segments across different market cycles.
Whether customer testing converts to commercial orders will be the near-term indicator of market traction. The company has not disclosed the names of customers currently in validation, nor any committed order volumes or revenue expectations tied to the programme.