Shares of Kandi Technologies (KNDI 1.20%) jumped 10.5% as of noon ET Tuesday after the Chinese electric car parts-maker announced that it has reached the stage of "successful mass production" of its new rechargeable battery for electric cars and trucks.
As Kandi explained in its press release, the new battery, dubbed the "IFR18650-2200mAh," is a lithium iron phosphate or "LFP" battery built in the familiar 18650 form factor. That is to say, it looks like an oversized double-A battery. It's the same one you're probably already familiar with, used to power miniature LED flashlights and to assemble the battery packs in your laptop -- and it's also the original battery shape used to create the battery modules for Tesla electric cars.
The main differences in Kandi's product are that (1) it uses iron in its chemistry, making the battery cheaper than the standard nickel-cobalt-aluminum-manganese and lithium mix, and (2), Kandi says the new battery has an energy density that "is 22% higher than the current industry average" -- so it lasts longer than an average 18650 battery, too.
In its statement, Kandi said it is "delighted by [its subsidiary] Huiyi's technical breakthrough and production achievement" and is "confident that Kandi can strengthen its market position ... as technology-leading LFP batteries move into the market."
Now the only question is: Sure, Kandi can make these batteries in large volumes -- but will corporate customers and consumers trust the quality enough to buy them?