On the evening of February 1, Rongbai Technology (688005) issued an announcement to sign a Joint Research and Development Agreement with South Korean battery giants to carry out comprehensive and in-depth cooperation in the fields of lithium manganese iron phosphate, precursor-free cathode materials and medium-nickel high voltage materials.

The agreement with Rongbai Technology is LG Energy Solution, Ltd. ("LGES"). Founded on December 1, 2020, LGES is a listed company on the main board of the Korean stock market, providing research and development of batteries, components, BMS, battery packs, technical support and all product business portfolios related to automotive batteries, and is currently one of the world's largest manufacturers of electric vehicle batteries.

This cooperation covers key areas such as lithium manganese iron phosphate, precursor-free positive materials, and medium-nickel high voltage, and the development results are expected to achieve global scale sales on corresponding projects. The two parties will also establish an irregular exchange of visits mechanism to discuss and share the progress and results of project development to ensure that both parties maintain their leading advantages in the above-mentioned fields.

"Rongbai Technology and LGES are long-term partners. The signing of this technical agreement marks the further deepening of the cooperative relationship between the two parties." Rongbai Technology said that based on the results of the joint development between the two sides, the company's materials will be imported into LGES and its end customers, further enhancing the company's global customer structure.

Rongbai Technology is a leading domestic three-way positive pole enterprise, will go to the sea to stand anchor South Korea. Previously, Rongbai Technology has completed the integrated layout of three-way positive, front-drive and recycling in South Korea, and completed the first phase of 20000 tons/year high nickel three-way positive and 6000 tons/year front-drive production capacity.

in August 2023, rongbai science and technology voluntarily disclosed the relevant announcement that it would invest in the construction of 40000 tons of high nickel ternary and 20000 tons of lithium manganese iron phosphate cathode projects in south Korea. During the same period, the company signed a framework cooperation agreement with well-known lithium-ion customers in Japan and South Korea, and shipments to European and American customers are also increasing. In the fourth quarter of 2023, the company shipped more than 1,000 tons in a single month, and it is still growing rapidly in 2024.

according to the announcement on the evening of the 1st, the company, as the only enterprise to achieve large-scale mass production of lithium manganese iron phosphate positive electrode, manganese iron ratio 6:4 products have been shipped in bulk. The company has broken through the next generation of solid-liquid integrated process and realized the performance improvement and cost reduction of lithium manganese iron phosphate material. At present, the company is promoting the 20000-ton/year lithium manganese iron phosphate cathode project in South Korea, and has carried out in-depth cooperation with overseas customers in technology, strategy and sales.

Precursor-free cathode materials are products produced using an integrated process that reduces cathode material manufacturing costs and carbon emissions, and also provides new, efficient and environmentally friendly solutions. At the same time, the company has accumulated many years of research and development experience in the field of ternary high voltage, and some high-voltage products have been recognized by downstream customers. The joint development with LGES will accelerate the industrialization process of high-voltage products.

It is understood that the two sides will continue to cooperate on other cutting-edge materials to promote the large-scale application of related products in the power and energy storage markets of Japan, South Korea, Europe and the United States.

On the evening of January 24, Rongbai Technology issued an announcement stating that the company is expected to achieve revenue of 22.873 billion yuan in 2023, a year-on-year decrease of 24.07; it will achieve a net profit of 0.593 billion yuan, a year-on-year decrease of 59.51. Basic earnings per share fell to $1.29 from $3 in 2022.

Based on this calculation, Rongbai Technology's net profit for the fourth quarter of 2023 is expected to be -22.85 million yuan, down about 105.25 percent year-on-year and down about 109.66 percent month-on-month. This means that Rongbai Technology has not continued the trend of Q3 performance in 2023, and it is also far from the company's expectation of maintaining high growth in the fourth quarter.

Regarding the reasons for the decline in performance, Rongbai Technology said that it was mainly due to the sharp drop in the price of lithium salt, and the company increased investment in the development of new materials and cutting-edge technologies.