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Shares of Lopal Tech hit their daily trading limit following a statement from the leading Chinese supplier of battery materials, indicating that the primary energy storage battery provider has revised its long-term order and increased its total value to as much as CNY45 billion (USD6.3 billion).
The company’s stock in Shanghai [SHA: 603906] climbed 10 percent to CNY18.06 (USD2.54) during the midday trading session. In Hong Kong, shares [HKG: 2465] soared 18.5 percent to HKD14.60 (USD1.88), after reaching an intraday gain of up to 28 percent.
Lopal plans to supply 1.3 million tons of lithium-iron phosphate (LFP) cathode materials to Cornex and three of its manufacturing plants by December 2030. This is a significant increase from the initial agreement, which was for 150,000 tons of materials with a deadline of April 2030. The earlier deal was valued at up to CNY5 billion (USD691 million), based on the price at that time.
Cornex has been actively expanding its energy storage battery production capacity and has entered into agreements with the local governments of Yichang and Xiangyang in Hubei Province. These agreements involve building new facilities with capacities of 80 and 70 gigawatt-hours, respectively.
Last year, Lopal produced 184,700 tons of LFP cathode materials, representing a 56 percent increase from the previous year. Its sales also grew by 65 percent to 178,300 tons, according to its annual financial report. Revenue from this division exceeded CNY5.8 billion, accounting for 75 percent of the company’s total income.
Compared to the more commonly used ternary lithium batteries in the global electric vehicle market, LFP batteries are more economical to produce, safer, and environmentally sustainable.
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