Chinese company Lopal experiences a significant leap following a USD 840 million order for battery materials from CATL.
Lopal Tech Secures Major Order from CATL, Boosting Stock and Revenue
Lopal Tech, one of the top three global suppliers of battery materials, has announced a significant order from Contemporary Amperex Technology (CATL), a leading Chinese supplier of battery materials. This order is worth approximately CNY6 billion, based on the current market price for LFP cathode materials.
The order, placed by CATL's overseas factory, will see Lopal supplying 157,500 tons of lithium iron phosphate cathode materials from its Indonesia plant to CATL from the end of June 2026 until 2031. However, the primary end customer for these CATL batteries was not specified by Lopal in the available information.
This news comes at a time when Lopal's stock is performing exceptionally well. The company's shares surged by their daily trading limit after receiving this order, with Lopal's stock closing at CNY17.07 per share in Shanghai, representing a 65% gain so far this year.
Lopal's LFP cathode materials production increased by 56% to 184,700 tons last year, and sales soared by 65% to 178,300 tons. The revenue from Lopal's LFP cathode materials segment reached CNY5.7 billion last year, accounting for 75% of the total.
Meanwhile, CATL and their Indonesian partners started building a power battery plant in West Java in early July. The first phase of this plant is scheduled to go live at the end of next year. It is planned that the joint venture plant, which is likely to become one of Southeast Asia's largest battery production bases, will make energy storage batteries in later phases.
LFP batteries, which will be supplied by Lopal, are cheaper to produce, safer, and more environmentally friendly compared to ternary lithium batteries. This order is a testament to the quality and demand for Lopal's LFP cathode materials.
The Indonesian LFP cathode materials factory operated by Lopal became operational last October and started bulk deliveries in January. This factory will supply 157,500 tons of materials to CATL from the end of next June through 2031.
In addition, Lopal has agreed to supply 152,000 tons of materials to the Malaysian plant of major Chinese battery producer Eve Energy starting next year through 2030.
This order from CATL is a significant step forward for Lopal Tech, further cementing its position as a leading global supplier of battery materials. The company's focus on sustainability, quality, and innovation continues to drive its success in the rapidly growing battery market.
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