Core Viewpoint - The partnership between Haike Xinyuan and BYD marks a significant step in the electrolyte supply chain, with a total procurement volume expected to exceed 300,000 tons over three years, indicating strong growth potential for both companies in the lithium battery sector [3][4]. Group 1: Partnership Details - On January 23, Haike Xinyuan signed a long-term cooperation agreement with BYD Lithium Battery Co., Ltd., committing to supply at least 100,000 tons of electrolyte products annually through pipeline transportation [3]. - The agreement includes the procurement of four types of solvents: Dimethyl Carbonate (DMC), Ethylene Carbonate (EC), Ethyl Methyl Carbonate (EMC), and Diethyl Carbonate (DEC) [3]. - Haike Xinyuan is one of the few domestic companies capable of supplying five types of lithium battery carbonate solvents and additives, already collaborating with major players in the electrolyte supply chain [3]. Group 2: Market Context - Since the second half of 2025, Haike Xinyuan has been actively securing contracts, with total supply expected to exceed 1.36 million tons, indicating a robust demand in the electrolyte market [4]. - The lithium battery electrolyte shipments in China are projected to reach 211,000 tons in 2025, reflecting a year-on-year growth of 45.3%, with leading companies like Kunlun New Materials and Fanelite ranked third and eighth in shipment volume [4]. Group 3: BYD's Expansion - BYD is a key player in the energy storage market, and its demand for lithium materials is expected to rise as the market grows [4]. - BYD's battery production capacity is projected to reach 650 GWh, with expectations of further increases to over 800 GWh in the next 1-2 years [6]. - The collaboration with Haike Xinyuan is closely tied to BYD's electrolyte project in Yichang, Hubei, which is part of a broader strategy to enhance its industrial layout in the region [7]. Group 4: Synergy and Efficiency - The proximity of Haike Xinyuan and BYD's operations in Yichang allows for efficient collaboration, leveraging the local lithium battery industry ecosystem to reduce costs and enhance production efficiency [8]. - This partnership is expected to foster technological advancements and scale production capabilities in the lithium battery sector, benefiting both companies [8].