Jin Rong Jie·2026-01-13 11:50Core Viewpoint - Company Rongbai Technology has signed a significant procurement cooperation agreement with CATL, expected to generate over 120 billion yuan in sales from supplying lithium iron phosphate cathode materials from Q1 2026 to 2031, totaling 3.05 million tons [1][2]. Group 1: Agreement Details - The agreement stipulates that Rongbai Technology will supply more than 500,000 tons of lithium iron phosphate cathode materials annually, resulting in approximately 20 billion yuan in sales each year, which is about 222.48% of Rongbai's revenue for the first three quarters of 2025 and 132.56% of its revenue for 2024 [1][2]. - The contract is binding for both parties and is expected to positively impact Rongbai's future operating performance, enhancing its stability and cyclical resilience [2]. Group 2: Market Context and Expectations - The market had anticipated this major order, following a previous agreement where Rongbai was designated as the primary supplier of sodium battery cathode materials for CATL, with a commitment to purchase at least 60% of its total sodium battery cathode materials from Rongbai [3]. - Following the announcement of the agreement, Rongbai's stock experienced a significant increase, reaching a peak of 38.78 yuan per share, with a closing price of 37.35 yuan, reflecting a market capitalization of 26.69 billion yuan [3]. Group 3: Industry Trends - The lithium iron phosphate market is expected to grow significantly due to advancements in solar and energy storage technologies, alongside the development of AI, which is driving down costs and fostering explosive growth in the energy storage sector [2]. - Rongbai's products are noted for their industry-leading performance in key metrics, making them suitable for high-end energy storage and power applications [2]. Group 4: Raw Material Price Trends - The price of lithium carbonate, a key raw material for lithium iron phosphate cathode materials, has been rising sharply, with battery-grade lithium carbonate reaching 154,100 yuan per ton, a nearly 29.17% increase from the end of December 2025 [6]. - The rising costs of lithium carbonate are expected to impact the entire lithium battery supply chain, affecting downstream companies significantly [6].