E‑Power Inc. (NASDAQ: EPOW) and Kehui International Ltd. have entered into a Memorandum of Understanding to create a new U.S. joint venture, E‑Power Grid Inc. USA. Under the agreement, E‑Power will hold a majority stake of at least 55% and will contribute $1.5 million in cash to fund the venture’s initial operations. Kehui will provide its “Synchronous Constant‑Frequency Microgrid” patents and technical support, and the joint venture will receive exclusive rights to use those patents in the United States and Canada.
The partnership marks a decisive shift for E‑Power, which has historically focused on graphite anode manufacturing for battery producers. By aligning with Kehui’s advanced microgrid technology, the company is positioning itself to serve the rapidly expanding market for microgrids that power artificial‑intelligence data centers, power equipment, and automation systems. The move taps a high‑growth niche where reliable, low‑cost power is critical for AI workloads, and it leverages E‑Power’s renewable‑energy‑powered manufacturing expertise to deliver stable solutions.
E‑Power’s parent company, Sunrise New Energy Co., Ltd., has faced significant financial headwinds, reporting negative margins and a distressed Altman Z‑Score. The joint venture’s $1.5 million cash infusion and a target of $3 million in cumulative sales over the first three years are designed to secure long‑term patent retention and provide a new revenue stream that can offset legacy business challenges. The partnership therefore represents a strategic effort to diversify earnings and reduce dependence on the volatile graphite anode market.
Investors have responded positively to the announcement, viewing the joint venture as a credible step toward higher‑margin, high‑growth operations. The deal signals confidence in the microgrid market for AI data centers and underscores E‑Power’s commitment to transforming its business model.
The venture’s success will hinge on the integration of Kehui’s patented technology, the ability to capture market share in the U.S. and Canadian microgrid space, and the execution of the $3 million sales target. If achieved, the joint venture could provide a sustainable revenue base that mitigates the financial risks associated with E‑Power’s legacy graphite anode business and positions the company as a key player in the emerging AI infrastructure sector.
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