Regulators Question Battery-Materials Supplier in $17 Billion CATL Deal
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
Ningbo Ronbay New Energy Technology's deal with battery giant Contemporary Amperex Technology has triggered an inquiry from the Shanghai Stock Exchange.
Shanghai's securities regulator issued a sharp inquiry to Ningbo Ronbay New Energy Technology Co. Ltd. (688005.SH) on Tuesday night, demanding the Chinese battery materials supplier explain the feasibility of a 120 billion yuan ($17.2 billion) supply contract signed with battery giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ) just hours earlier.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- Ronbay signed a 120 billion yuan ($17.2 billion) six-year LFP cathode supply deal with CATL, despite current LFP production capacity being much lower than required.
- Shanghai regulators suspended Ronbay’s stock and questioned the feasibility and motives of the contract, amid concerns about share inflation or insider trading.
- Ronbay, historically a ternary materials leader, is pivoting to LFP after industry shifts, expecting a net loss in 2025 and depending on capacity expansion to fulfill the deal.
AI generated, for reference only
Who’s Who
- Ningbo Ronbay New Energy Technology Co. Ltd.
- Ningbo Ronbay New Energy Technology Co. Ltd. is a Chinese battery materials supplier founded in 2014, known for its leading market share in ternary cathode materials. Facing a shift towards LFP batteries, Ronbay has expanded into the LFP sector through R&D and acquisitions. The Shanghai Stock Exchange recently questioned the feasibility of its 120-billion-yuan LFP supply contract with CATL due to concerns about Ronbay's production capabilities and potential stock manipulation. Its stock was suspended pending a detailed explanation.
- Contemporary Amperex Technology Co. Ltd. (CATL)
- Contemporary Amperex Technology Co. Ltd. (CATL) is a Chinese battery giant. It signed a 120 billion yuan ($17.2 billion) supply contract with Ningbo Ronbay New Energy Technology Co. Ltd. for lithium iron phosphate (LFP) cathode materials. Deliveries under this agreement are expected to begin in the first quarter of 2026 and span six years.
- Guizhou Xinren New Energy Technology Co. Ltd.
- Guizhou Xinren New Energy Technology Co. Ltd. is a local firm that was acquired by Ronbay in December. It specializes in LFP (lithium iron phosphate) cathode materials and has an annual production capacity of 60,000 tons. This acquisition is part of Ronbay's strategy to expand into the LFP sector due to the shifting battery market towards LFP batteries.
- Hunan Yuneng New Energy Battery Material Co. Ltd.
- Hunan Yuneng New Energy Battery Material Co. Ltd. is a major supplier of Lithium Iron Phosphate (LFP) materials. In late December, they, along with other key LFP suppliers, announced month-long production halts for maintenance. This action was widely seen as resistance against pressure from their clients, such as CATL, to lower prices for their materials.
- Shenzhen Dynanonic Co. Ltd.
- Shenzhen Dynanonic Co. Ltd. is mentioned as a major LFP material supplier. In late December, it announced month-long production halts for maintenance, a move interpreted as resistance against downstream pressure to cut prices.
AI generated, for reference only
What Happened When
- 2014：
- Ningbo Ronbay New Energy Technology Co. Ltd. was founded.
- From 2021 to 2024：
- Ronbay ranked first globally by market share in ternary cathode materials.
- 2024：
- Ronbay reported a net profit of 296 million yuan.
- July 2025：
- Ronbay announced plans to expand into the LFP (lithium iron phosphate) sector.
- Late December 2025：
- Major LFP material suppliers, including Hunan Yuneng and Shenzhen Dynanonic, announced month-long production halts for maintenance.
- By December 2025：
- Ronbay acquired Guizhou Xinren New Energy Technology Co. Ltd., which has an annual LFP cathode capacity of 60,000 tons.
- Monday, January 12, 2026：
- Ronbay disclosed that it expects to swing to a net loss of 150 million to 190 million yuan in 2025.
- Tuesday, January 13, 2026：
- Ronbay signed a supply contract worth over 120 billion yuan with CATL and disclosed the agreement in a filing.
- Tuesday night, January 13, 2026：
- Shanghai's securities regulator issued an inquiry to Ronbay about the feasibility of their contract with CATL.
- Wednesday, January 14, 2026：
- Shanghai Stock Exchange ordered an immediate suspension of Ronbay's stock pending a detailed response.
AI generated, for reference only
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新