Ronbay Technology: Anticipates Large-Scale Deployment of Sodium-Ion Batteries Next Year, Advancing Collaboration with Downstream Humanoid Robot Clients

At the Q3 2024 earnings briefing, Ronbay Technology's CFO Yang Yang stated that the company's gross margin in Q3 had increased to 11.15%. Its Q3 overseas customer sales and shipments of 9-series ultra-high nickel products both saw significant QoQ growth. The company continues to advance its globalization strategy and new business initiatives. "With increasing customer demand, the development and promotion of strategic new products, and the gradual improvement in the capacity utilization rate of overseas factories, the company's profitability is expected to further improve," Yang said.

In the first three quarters of this year, Ronbay Technology achieved revenue of 11.323 billion yuan, down 39.04% YoY, and a net profit attributable to shareholders of 116 million yuan, down 81.1% YoY.

On a single-quarter basis, after experiencing consecutive losses in Q4 last year and Q1 this year, the company achieved QoQ growth in Q2 and Q3, with a net profit attributable to shareholders of 106 million yuan in Q3, down 55.15% YoY but up approximately 123.32% QoQ.

Ronbay Technology primarily engages in the R&D, production, and sales of ternary materials, LMFP materials, sodium-ion battery materials, and ternary precursors. The company is active in multiple fields, including sodium-ion batteries, LMFP, and solid-state batteries.

At the earnings briefing, Ronbay Technology's Board Secretary Yu Jiyun stated that in the first three quarters of this year, the company's LMFP product shipments grew by over 100% YoY, maintaining its leading market share in the industry. Meanwhile, the company's LMFP products hold the primary supplier position for multiple customers and have secured orders for thousands of vehicles from top-tier power battery enterprises.

" The company has an annual LMFP production capacity of 10,000 mt, and its South Korea plant is planning a phosphate capacity of 20,000 mt/year. Currently, the low-cost, high-performance second-generation products have overcome technical bottlenecks, achieving long cycle life while further reducing costs to meet the requirements for exclusive use in power batteries. These products have also been designated for commercial vehicles by top-tier enterprises and are expected to become the cathode material with the lowest watt-hour cost after scaling up," Yu said.

Regarding sodium-ion batteries, Yu stated that the company's sodium-ion battery products for both power and ESS sectors have been positioned with leading customers domestically and internationally and are being delivered on a small scale. The next-generation 180Wh/kg system has completed preliminary technical preparations. Among them, the company's layered oxide products have been applied in multiple downstream fields, including power and ESS. In Q3, the company achieved breakthroughs in key performance metrics such as compaction and capacity for polyanion materials, leading the industry.

"The company's self-developed integrated production process for sodium-ion battery materials has passed validation by mainstream domestic and international customers. Recently, the company signed a bulk procurement agreement for sodium-ion battery cathode materials with a well-known sodium-ion battery enterprise, and large-scale implementation is expected next year," Yu said.

In the solid-state battery sector, Ronbay Technology is conducting platform-wide R&D, including solid-state battery cathodes, electrolytes, and key electrolyte raw materials.

Among these, ultra-high nickel ternary cathode materials and sulphide electrolyte materials for all-solid-state batteries have been certified by multiple domestic and international customers. The sulphide electrolyte exhibits excellent ionic conductivity and air stability and has begun preparation of Ah-level capacity density all-solid-state pouch batteries, demonstrating outstanding energy density performance.

Regarding specific customer progress, the company has established partnerships with over 40 domestic and international battery and automaker enterprises in the solid-state battery field, including Qingtao, CATL, and WELION New Energy. In addition to Chinese customers, the company also collaborates with battery and automaker enterprises in South Korea, Japan, and Europe, as well as on several national-level key research projects. Among them, battery products equipped with cathode materials for semi-solid-state batteries have been applied in end-user car models with an ultra-long driving range of 1,000 km. The ternary cathode materials for all-solid-state batteries have gained full recognition from top-tier industry customers, with stable shipment growth expected in 2024.

In terms of new application scenarios, Yu stated that the low-altitude economy is better suited for battery products with high power and high energy density. "With the increasing demand for high energy density products in the low-altitude flight sector, the sales of the company's high-nickel and ultra-high-nickel 9-series products are also continuously increasing."

Meanwhile, in the humanoid robot sector, Yu noted that the company's high-nickel and ultra-high-nickel polycrystalline and monocrystalline ternary cathode materials are at an internationally leading level and can meet the needs of fields like humanoid robots that require high energy density. The company is advancing related collaborations with downstream customers.

In overseas markets, Yu stated that in the first three quarters, the company shipped nearly 15,000 mt to customers in Europe, the US, Japan, and South Korea, with shipments of ultra-high nickel materials above the 9-series exceeding 20,000 mt. The company has established stable development and supply relationships with five of the world's top six most valuable battery and EV customers. "The company maintained high shipment levels in Q4, with a significant QoQ increase in production schedules at the South Korea base, further improving the company's customer structure. The first-phase production line at the Xiantao facility has been largely completed and put into operation."

"The company's globalization strategy is progressing steadily. The first-phase 20,000 mt/year ternary material capacity at the South Korea plant has achieved large-scale shipments, with shipment volumes continuing to increase. The second-phase 40,000 mt/year ternary material capacity is undergoing commissioning and is expected to start production in early 2025. Through investments and acquisitions, the company is conducting site selection for a European plant. The feasibility study for the first-phase 20,000 mt/year project has been completed, and the company is collaborating with several internationally renowned battery and automaker enterprises, aiming to complete the first-phase construction by the end of 2025. Additionally, the company has completed the registration of its North American subsidiary, with site selection for a North American plant progressing steadily. Multiple rounds of site selection have been completed, and discussions with key regional governments are advancing to promote project progress," Yu said.

"In the next 1-2 years, to meet the needs of international customers and provide internationally competitive products, the company will actively conduct site selection in other overseas regions based on its existing facilities," Yu added.