Shares of Easpring Material Technology rose after the leading Chinese supplier of lithium battery cathode materials said it received an order worth around CNY14 billion (USD1.9 billion) from South Korean battery giant LG Energy Solution.
Easpring [SHE: 300073] jumped 3.4 percent to CNY46.40 (USD6.39) a share as of 1.25 p.m. in Shenzhen today, after surging by as much as 6.6 percent in the morning trading session.
LG Energy will buy 110,000 tons of high-nickel and medium-nickel cathode materials from Easpring starting this year through 2027, the Beijing-based company announced yesterday, citing a deal the pair inked in South Korea.
Easpring received CNY972 million (USD134 million) from LG Energy in the first three quarters of last year, accounting for 8.3 percent of its total revenue. The annual figure was CNY1.3 billion (USD179.1 million) in 2023 and CNY677 million in 2022.
LG Energy, the battery arm of multinational conglomerate LG Group, will deepen Easpring's integration into its premium electric vehicle supply chain while boosting its international influence in cathode materials and accelerating its global industrial layout, the Chinese firm noted.
Easpring's factories in the Chinese city of Changzhou and Finland will be the main production bases for fulfilling the LG Energy contract, with both plants participating in signing the long-term agreement.
On March 3, Easpring announced it secured a three-year supply deal from another South Korean battery giant, SK On, nothing that the Seoul-based company will likely buy 17,000 tons of various high-nickel and medium-nickel cathode materials by 2027.
In 2023, Easpring announced it would invest EUR774 million (USD839.2 million) to set up its first overseas plant in Finland to meet fast-growing demand in the European electric vehicle market. The project's first phase, with an annual production capacity of 60,000 tons, is expected to go live next year.
Easpring holds a 70 percent stake in the factory, while Finnish Battery Chemicals Oy owns the rest.
Easpring has established long-term and stable ties with leading overseas battery makers, including SK On, LG Energy Solution, Samsung SDI, and Murata Manufacturing, according to its most recent financial report. Through these clients, it has entered the supply chains of Volkswagen Group, Hyundai Motor, BMW Group, Mercedes-Benz Group, and other leading global EV producers.
