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Shares of Lopal Tech hit their daily trading limit following the announcement that they secured a contract valued at approximately 6 billion CNY (around USD 840 million) from an overseas facility operated by a major domestic battery manufacturer.
As of midday trading today in Shanghai, the company’s stock jumped 10%, reaching CNY 17.07 (about USD 2.49) per share.
The company’s plant in Indonesia is set to supply 157,500 tons of lithium iron phosphate (LFP) cathode materials to the battery producer from the end of next June through 2031, according to a statement released late yesterday. This company is ranked among the top three suppliers globally in this sector.
Based on current market prices for LFP cathode materials, this order is expected to generate roughly 6 billion CNY in revenue.
While specific destinations of the supplied materials were not disclosed, the battery manufacturer mentioned earlier revealed in early July that it had commenced construction on a new power battery factory in West Java alongside local partners. This plant is scheduled to commence operations by the end of next year and is anticipated to become one of Southeast Asia’s largest battery manufacturing hubs after planned future expansions to include energy storage batteries.
Compared to the widely used ternary lithium batteries in international electric vehicles, LFP batteries are more affordable to produce, safer, and environmentally friendly.
Lopal’s Indonesian LFP cathode material factory became operational last October, with mass shipments beginning in January. In early June, the company also agreed to supply 152,000 tons of materials to the Chinese battery producer Eve Energy’s Malaysian plant, starting next year and continuing through 2030.
Production of LFP cathode materials by Lopal increased by 56% last year, reaching 184,700 tons, while sales grew by 65% to 178,300 tons. Revenue from this segment exceeded 5.7 billion CNY, representing 75% of the company’s total revenue.
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