Xin Lang Cai Jing·2025-05-20 11:47Core Viewpoint - Wanrun New Energy has secured a significant contract with CATL for the supply of lithium iron phosphate, ensuring stable sales for the next five years [1][4]. Company Summary - Wanrun New Energy signed a business cooperation agreement with CATL to supply approximately 1.3231 million tons of lithium iron phosphate from May 1, 2025, to May 1, 2030, averaging about 264,600 tons per year [1]. - The total value of the order is estimated to exceed 42.3 billion yuan, contributing approximately 8.46 billion yuan in annual revenue, compared to the company's total revenue of 7.52 billion yuan last year [1]. - The company reported a 38.21% year-on-year decrease in revenue last year due to falling lithium iron phosphate prices, resulting in a net loss of 870 million yuan [4][5]. - Wanrun New Energy's sales to its top five customers accounted for 88.21% of total sales, indicating a high dependency on a few clients [4]. Industry Summary - Lithium iron phosphate is primarily used in lithium-ion batteries, with a market share exceeding 80% in domestic power batteries last year, and 92.5% in global energy storage batteries in 2024 [3]. - The order with Wanrun New Energy is the largest lithium iron phosphate order of the year, valued at four times the previous largest order signed by Longpan Technology with LG Energy [1][3]. - The lithium iron phosphate industry is currently in a profit recovery phase, with Wanrun New Energy's gross margin improving by 3.51 percentage points to 2.66% in Q1, although the company continues to incur losses [5]. - The demand for high-density lithium iron phosphate, particularly for fast-charging batteries, is increasing, with major battery manufacturers like CATL and BYD focusing on this segment [5].