LOPAL TECH Secures 5 Billion Yuan LFP Cathode Material Order, Primarily for Power Batteries

Deep News12-03

On December 3, shares of Jiangsu Lopal Tech. Group Co., Ltd. (SH603906) surged by the daily limit to 23.41 yuan per share, up from the previous closing price of 21.28 yuan, marking a 6.29% increase.

The rally followed an announcement on December 2 that LOPAL TECH's subsidiary, LBM New Energy (AP) Pte. Ltd. ("Lithium Source Asia-Pacific"), signed a long-term supply agreement with Sunwoda Automotive Energy Technology (Thailand) Co., Ltd. ("Sunwoda"). Under the deal, Lithium Source Asia-Pacific will supply 106,800 metric tons of lithium iron phosphate (LFP) cathode materials to Sunwoda from 2026 to 2030, with the total contract value estimated between 4.5 billion and 5.5 billion yuan.

Sunwoda, a Thailand-based company majority-owned by Hong Kong Sunwoda Power (99%), is a subsidiary of Shenzhen Sunwoda Electronics (SZ300207). It specializes in manufacturing lithium-ion batteries, battery management systems, and energy storage solutions.

The agreement stipulates minimum purchase volumes and maximum supply capacities, with demand recalibrated biennially. Pricing will be adjusted monthly based on raw material fluctuations, subject to mutual negotiation in case of significant market shifts.

LOPAL TECH stated that the contract aligns with its strategic goals, fostering long-term partnerships and stable sales. Successful execution is expected to positively impact future earnings.

A company representative confirmed that Sunwoda's purchases are primarily for power batteries. Overseas capacity expansion is underway, with Indonesia's second-phase 90,000-ton project set for full production by Q1 2026.

After reporting steep losses in 2023, LOPAL TECH has shown improvement in 2024. Q1–Q3 revenue rose 2.91% year-on-year to 5.83 billion yuan, while net losses narrowed by 63.53% to 110 million yuan, attributed to higher capacity utilization and overseas profitability.

Separately, industry sources noted potential LFP cathode material price hikes from 2026 due to rising raw material costs, which LOPAL TECH is negotiating with clients.

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