On January 15, Lopal Technology released a series of major announcements, stating that while optimizing the use of proceeds from its global offering, the company is further deepening its strategic partnership with Contemporary Amperex Technology Co., Limited (CATL).
In terms of business expansion, Lopal Technology entered into the New CATL Procurement Framework Agreement with CATL, with a term from January 1, 2026 to December 31, 2026. Under the agreement, CATL will purchase relevant products from Lopal Technology, including lithium iron phosphate (LFP) cathode materials. The two parties have agreed that the annual transaction cap under the agreement for 2026 will be RMB 7.0 billion.
At the same time, in order to enhance capital utilization efficiency, Lopal Technology announced a reallocation of the unused portion of the net proceeds from its global offering.
The company plans to reassign the entire net amount of HKD 198 million, which was originally allocated to the construction of a new lithium manganese iron phosphate (LMFP) production line at its Xiangyang plant in Hubei Province, to the high-performance lithium battery cathode material project in Jintan, Jiangsu Province.
According to the announcement, the change in the use of proceeds is mainly based on considerations of market demand and actual conditions. At present, lithium manganese iron phosphate has not yet achieved large-scale commercial application, with recent shipment volumes significantly lower than those of lithium iron phosphate. In contrast, high-performance lithium iron phosphate offers superior cost-performance advantages.
The proposed “Jintan Project” will be implemented by Lithium Source (Jiangsu) Technology Co., Ltd., a wholly owned subsidiary of Changzhou Lithium Source, which in turn is a wholly owned subsidiary of the Group. The project will be located in the Hualuogeng High-Tech Industrial Development Zone in Jintan, Jiangsu Province, and will involve the construction of an R&D center and a high-performance lithium iron phosphate production base with an annual capacity of 240,000 tons. Phase I is designed with a planned capacity of 120,000 tons per year, with construction scheduled to commence in the first quarter of 2026 and completion and commissioning expected in the third quarter of 2026. Phase II will be launched at an appropriate time depending on market conditions.
At present, the proposed change in the use of proceeds is still subject to approval by shareholders at a general meeting of the company by way of an ordinary resolution before it can take effect.
Source：EnergyTrend