CATL has recently made significant progress in strengthening its upstream supply chain for critical materials.
According to the latest disclosed transaction update, CATL plans to become the controlling shareholder of Jiangxi Shenghua through a capital increase and share expansion, further consolidating its strategic position in the lithium iron phosphate (LFP) sector.
Under the proposed transaction structure, CATL intends to invest approximately RMB 2.563 billion to subscribe for about RMB 2.084 billion of newly issued registered capital in Jiangxi Shenghua. At the same time, existing shareholder Fulin Precision will make a concurrent capital increase of RMB 1.0 billion, subscribing for approximately RMB 813 million of newly issued registered capital.
Upon completion of the capital increase, CATL will hold 51% of Jiangxi Shenghua’s equity, becoming its controlling shareholder, while Fulin Precision’s shareholding will be adjusted to 47.4096%.
At present, the transaction is still subject to the completion of decision-making procedures in accordance with regulations governing major asset restructurings, including reviews and approvals by the boards of directors and shareholders’ meetings, as well as regulatory approval from securities authorities.
This strategic investment is expected to accelerate Jiangxi Shenghua’s progress in the research and production of high-quality lithium iron phosphate products, international expansion, supply chain upgrades, and development in the energy storage market. Following the completion of the transaction, Jiangxi Shenghua’s capital strength and overall competitiveness will be significantly enhanced, supporting faster international expansion, supply chain optimization, and further growth in the energy storage sector.
Source：EnergyTrend