HK Stock Market Move | Jiangsu Lopal Tech. (02465) rose more than 10% and won the largest global order for lithium iron phosphate this year, with a market value of nearly 10 billion yuan.

Jiangsu Lopal Tech. (02465) surged over 10%, as of the time of writing, it is up 10% at 5.28 Hong Kong dollars, with a trading volume of 52.04 million Hong Kong dollars. On the news front, on the evening of December 24th, Jiangsu Lopal Tech. announced that its holding subsidiaries, Changzhou Lithium Source and Asia-Pacific Lithium Source, have revised the "Long-Term Supply Agreement" signed with South Korea's LG Energy Solution (LGES) in February this year. The most eye-catching change after the revision is the increase in the sales quantity of lithium iron phosphate cathode materials from Lithium Source to LGES from 160,000 tons to 260,000 tons by 2028. Based on the current market prices, the overall market value of this latest order is close to 10 billion RMB, making it the largest transaction contract signed in the global lithium iron phosphate market this year. Huachuang Securities pointed out that Jiangsu Lopal Tech. is a leader in lubricants and automotive urea. In 2021, it acquired 100% equity of BTR (Tianjin) and Jiangsu BTR subsidiaries, and established subsidiaries in Sichuan and Jiangsu to invest in lithium iron phosphate production lines, thus entering the lithium iron phosphate cathode field. BTR's downstream customers cover mainstream battery manufacturers such as Contemporary Amperex Technology and BYD Company Limited. By acquiring leading companies, the company has a customer advantage compared to companies transforming from titanium dioxide or phosphate chemicals to lithium iron phosphate. The product development period is significantly reduced, and may benefit more quickly from the current lithium iron phosphate boom.