HK Stock Market Move | Jiangsu Lopal Tech (0265) rises nearly 6% in the afternoon. The company has signed a supply agreement with LG New Energy, with the total order value close to 10 billion yuan.

Jiangsu Lopal Tech. (0265) rose nearly 6% in the afternoon trading session, reaching a 3.66% increase at the time of publication, trading at HK$4.81 with a transaction volume of HK$20.7966 million. On the news front, on December 24, Jiangsu Lopal Tech.'s subsidiary Changzhou Lithium Source and Asia-Pacific Lithium Source revised a long-term supply agreement with South Korea's LG Energy Solution (LGES), increasing the sales of 260,000 tons of lithium iron phosphate cathode materials products to LGES from 2024 to 2028, an increase of 100,000 tons from the original agreement. Based on current market prices, the overall market value of this latest order is close to RMB 10 billion. Huachuang Securities pointed out that Jiangsu Lopal Tech. is a leader in lubricants and automotive urea, acquired 100% equity of BTR (Tianjin) and Jiangsu BTR subsidiary companies in 2021, and established subsidiary companies in Sichuan and Jiangsu to invest in lithium iron phosphate production lines, thus entering the lithium iron phosphate cathode field. BTR downstream customers include major battery manufacturers such as Contemporary Amperex Technology and BYD Company Limited. By acquiring leading enterprises, the company has a customer advantage compared to companies transforming from titanium dioxide and phosphate chemicals to lithium iron phosphate. The product development cycle is significantly reduced, potentially allowing the company to benefit faster from the current lithium iron phosphate boom.