Jiangsu Lopal Tech Co Ltd

Lopal Technology, which hit the daily price limit for two consecutive trading days, announced that its second-tier holding subsidiary Nanjing Lithium Source Nanotechnology has signed a Strategic Cooperation Framework Agreement with Zhejiang Jiyangtongxing Energy Technology. Under the agreement, from 2026 to 2030, Lopal will sell a total of 378,600 to 567,800 tonnes of lithium iron phosphate cathode material to Jiyangtongxing, with the agreement valid from January 1, 2026 to December 31, 2030, a period of five years. Jiyangtongxing was established in January 2025 with registered capital of 1 billion yuan and is the battery business entity under Geely Holding, responsible for the research, development and industrialisation of Geely's Shield Aegis battery. Lopal Technology entered the lithium iron phosphate cathode material industry in 2021 and ranked seventh globally by 2025 shipments. Its first-phase 30,000-tonne capacity at its Batang base in Indonesia is already fully operational, the second-phase 90,000-tonne capacity is ramping up, and the third-phase 120,000-tonne capacity is under construction. Once all phases are completed, total overseas capacity will reach 240,000 tonnes. This is another major long-term order secured by Lopal Technology over the past year. Since 2025, the company has signed multiple long-term supply agreements with customers including CATL, EVE Energy, Sunwoda, Chunen New Energy and LG Energy Solution, with cumulative new long-term orders exceeding 60 billion yuan, covering the period from 2025 to 2031. Lopal Technology said that if the agreement is fulfilled smoothly, it will have a positive impact on the company's future performance, but noted that the agreement is a strategic cooperation framework rather than a rigid price- and volume-locked contract, and the final realised scale will still depend on downstream demand, capacity commissioning and product validation progress.

The 15th Five-Year Plan for the Development of the New Battery Industry, jointly formulated by seven departments including the Ministry of Industry and Information Technology, was officially released on September 28, proposing that all-solid-state batteries achieve initial large-scale application by 2030. Boosted by this news, the solid-state battery concept surged again on the morning of September 30, with Transart Technology, Shanghai Xiba, and Xin Ya Zhi Cheng hitting limit up, while lithium battery materials company Lopal Technology was pulled up to a 9.99 percent limit-up. The plan makes arrangements for developing advanced battery materials and high-end manufacturing equipment, proposing to develop isostatic pressing equipment for solid-state batteries, and to develop solid-state electrolytes such as sulfide and halide materials with high air stability, as well as high-performance polymer composite solid-state electrolytes. Lopal Technology recently stated that its solid-state battery precursor product D392 is a high-nickel ternary precursor material tailored for solid-state batteries and launched by its wholly owned subsidiary Sanjin Lithium. Through measures such as element doping and structural adjustment, it has been made more stable, safer, and longer-lasting, and can better solve problems in solid-state batteries such as cracking of cathode materials and high-temperature decomposition of materials.

Lopal Technology released its 2026 interim report, posting a net profit attributable to the parent of 421 million yuan in the first half, swinging from a loss of 85.15 million yuan in the same period last year. Revenue reached 7.2 billion yuan, up 98.7 percent year on year, while net profit attributable to the parent after deducting non-recurring items was 423 million yuan, compared with a loss of 132 million yuan a year earlier. In the second quarter, revenue was 3.7 billion yuan, up 82.4 percent year on year, and net profit attributable to the parent was 206 million yuan, versus a loss of 59.2 million yuan in the prior-year period. As of the end of the second quarter, total assets stood at 26.784 billion yuan, up 43.5 percent from the end of last year, and net assets attributable to the parent were 5.181 billion yuan, up 83.2 percent. The company focuses on lithium iron phosphate cathode materials and environmentally friendly fine chemicals for vehicles. During the reporting period, cathode material shipments reached 3.32 million tonnes, up 59 percent year on year, benefiting from national policy support and the development of the new energy vehicle market.

Lopal Technology plans to use 1.4 billion yuan raised from its 2025 A-share private placement to increase capital in its controlling subsidiary Changzhou Lithium Source. At the same time, all interest and wealth-management income generated in the special fundraising account during the period will be provided to Changzhou Lithium Source as interest-bearing loans. Changzhou Lithium Source will then use the funds it receives to increase capital in its wholly owned subsidiaries Shandong Lithium Source and Hubei Lithium Source by 800 million yuan and 600 million yuan respectively, and will also provide them with interest-free loans. The funds will be used to implement the project for 110,000 tonnes of high-performance phosphate-based cathode materials and the project for 85,000 tonnes of high-performance phosphate-based cathode materials. In the first quarter of 2026, Lopal Technology achieved revenue of 3.497 billion yuan and net profit attributable to the parent company of 214 million yuan.

Lopal Technology has signed a continuing connected transaction agreement with LG Energy Solution, Ltd. Since LG Energy Solution holds a 20% stake in the company's third-tier subsidiary, Lopal Indonesia, it is regarded as a connected person under the Hong Kong Listing Rules. To regulate transactions between the two parties, the company has entered into separate continuing connected transaction agreements with LG Energy Solution for procurement and sales, and has set annual caps for the transaction amounts from 2026 to 2028. These transactions do not constitute connected transactions under the rules of the Shanghai Stock Exchange.

The lithium iron phosphate industry is preparing a collective price increase. At a closed-door meeting led by an industry association last week, raising prices was the main topic, and participating companies generally expressed a willingness to do so. A person in charge at Lopal Technology said the initial expected increase is between one thousand and two thousand yuan per tonne. Hunan Yuneng has already taken the lead by issuing a price adjustment notice, deciding to raise prices for all lithium iron phosphate products by two thousand yuan per tonne starting August 1. This round of price hikes is mainly driven by rising raw material costs such as ferrous sulfate and phosphoric acid, and the current pricing mechanism linked to lithium carbonate can no longer cover the actual cost increases. As of press time, downstream power battery manufacturers have not yet explicitly agreed to accept the price increases, and factors such as expectations of consumption tax levies have added difficulty to price negotiations. As the core cathode material for power batteries, every one thousand yuan per tonne increase in lithium iron phosphate raises battery unit costs by about eight hundred yuan per tonne. For a mainstream family car equipped with a sixty kilowatt-hour battery, the battery cost would increase by about six thousand to seven thousand two hundred yuan. Against the backdrop of vehicle manufacturing profit margins of only one point five percent, upstream price hikes will pose severe challenges to vehicle profit margins.