BUSINESS

China Probes Ronbay Over $17 Billion Battery Deal With CATL

Published: Jan. 20, 2026 1:33 a.m. GMT+8

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Once a leading producer of high-nickel ternary cathode materials, Ronbay is now trying to shift focus as LFP gains traction

China's securities watchdog has launched an investigation into Ningbo Ronbay New Energy Technology Co. Ltd. over concerns it may have issued misleading statements about a major contract announcement with battery giant CATL.

The China Securities Regulatory Commission (CSRC) disclosed the probe on Sunday. In response, the Shanghai-listed materials supplier said it would fully cooperate with authorities and stressed that operations remain unaffected. Still, investors reacted swiftly, with shares tumbling 11.2% on Monday to close at 33.18 yuan ($4.7).

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China’s CSRC is investigating Ningbo Ronbay over possibly misleading statements about a massive 120 billion yuan LFP supply deal with CATL, causing Ronbay’s shares to drop 11.2%.
Doubts arose over Ronbay’s ability to fulfill the contract given its limited capacity; the company admitted its estimates lacked rigor and forecasted a 2025 net loss of 150–190 million yuan.
The controversy comes as China intensifies scrutiny of battery sector overcapacity and price-cutting.

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Who’s Who

Ningbo Ronbay New Energy Technology Co. Ltd.: Ningbo Ronbay New Energy Technology Co. Ltd. is a Shanghai-listed Chinese materials supplier currently under investigation by the China Securities Regulatory Commission (CSRC). The probe concerns potentially misleading statements about a major contract announcement with battery giant CATL. Ronbay's shares dropped 11.2% following the news. The company is transitioning from high-nickel ternary cathode materials to LFP production, seeking to diversify as LFP gains market share.

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) is a prominent battery giant. Ningbo Ronbay New Energy Technology Co. Ltd. announced a major lithium iron phosphate (LFP) cathode supply deal with CATL, valued at over 120 billion yuan. This announcement, however, has drawn scrutiny from regulators due to concerns about misleading statements.

Guizhou Xinren New Energy Technology Co. Ltd.: Guizhou Xinren New Energy Technology Co. Ltd. operates a 60,000-ton capacity LFP production line. Ningbo Ronbay New Energy Technology Co. Ltd. has made a partial payment to acquire a stake in the company as part of its strategy to expand its LFP production capabilities.

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What Happened When

2024：: Ronbay posted a net profit of 296 million yuan.

2025：: After the removal of state subsidies, LFP’s share of China’s power battery market reached 80%. Ronbay forecasted a net loss of between 150 million yuan and 190 million yuan for the year.

January 7, 2026：: The Ministry of Industry and Information Technology and other agencies held a meeting to address overcapacity and aggressive price-cutting in the battery sector, pledging to strengthen oversight on capacity and financing.

January 17, 2026：: Ronbay announced its lithium iron phosphate (LFP) cathode supply deal with CATL. The Shanghai Stock Exchange issued a formal inquiry regarding the deal the same day.

January 18, 2026：: The China Securities Regulatory Commission (CSRC) disclosed its investigation into Ningbo Ronbay New Energy Technology Co. Ltd. over misleading statements about the contract with CATL. Ronbay clarified the contract value in a filing.