Core Viewpoint - Shengxin Lithium Energy has announced a collaboration with Zhongchuang Innovation航 to sign a framework agreement for lithium salt product procurement from 2026 to 2030, with a total of 200,000 tons to be purchased during this period [1][8]. Company Overview - Shengxin Lithium Energy's main business includes lithium ore mining, production, and sales of basic lithium salts and lithium metal products. As of the first half of 2025, the company has established lithium salt production capacity of 137,000 tons per year and lithium metal capacity of 500 tons per year [4][11]. Collaboration Details - The collaboration with Zhongchuang Innovation航 could result in a total contract value of approximately 22 billion yuan if all products are lithium carbonate, calculated at the current price of 110,000 yuan per ton. If all products are lithium hydroxide, the contract value could exceed 17 billion yuan, calculated at 87,000 yuan per ton [4][11]. - This new order scale is approximately 3.7 to 4.8 times Shengxin Lithium Energy's total revenue of 4.58 billion yuan in 2024, indicating a strong growth trend for the company [4][11]. Market Context - The power and energy storage markets have been experiencing rapid growth, particularly in the energy storage sector, leading to a surge in demand for energy storage batteries. This has prompted battery companies to secure upstream materials through equity investments or long-term contracts [4][11]. - Lithium carbonate, a key raw material for batteries, has seen a significant increase in both volume and price, with prices reaching new highs since June 2024, surpassing 90,000, 100,000, and 110,000 yuan per ton. As of December 23, the main contract for lithium carbonate on the Shanghai Futures Exchange approached 120,000 yuan per ton [4][11]. Industry Performance - Major lithium salt companies, including Ganfeng and Tianqi, have shown significant improvement in their performance in the second half of the year, with many turning profitable. For instance, Ganfeng Lithium reported a third-quarter revenue of 6.249 billion yuan, a year-on-year increase of 44.10%, and a net profit of 557 million yuan, up 364.02% [6][12]. - Battery companies, including CATL, BYD, and others, have initiated a "rush for goods" to avoid supply chain disruptions, despite the challenges in returning material prices to peak levels [6][12]. Strategic Investments - In late October, Shengxin Lithium Energy terminated its Hong Kong IPO plan and announced the introduction of strategic investors, including Shengtun Group, Zhongchuang Innovation航, and Huayou Cobalt Group, signing a strategic cooperation agreement with Zhongchuang Innovation航 for a subscription of 945 million yuan. If successful, Zhongchuang Innovation航 will become a shareholder with over 5% ownership [6][14]. - Prior to placing orders with Shengxin Lithium Energy, Zhongchuang Innovation航 also signed a three-year supply cooperation agreement for 373,000 tons of copper foil with Nord's subsidiary and a supply framework agreement for 725,000 tons of electrolyte products with Tianci Materials [7][14].