[SMM Analysis] Frequent Investment Moves by Lithium Battery Companies

By the end of 2024, the profitability of the lithium battery industry chain will improve, the decline in battery cell production schedules will be smaller than in historical years, and investments in the lithium battery industry will be frequent!

EVE Issues Statement in Response

On December 25, EVE announced that the company and EVE Malaysia had established a long-term supply relationship with an overseas customer for battery cells. According to the announcement, the company and its subsidiary EVE Malaysia have signed a cooperation agreement with a certain group customer in the Americas to supply battery cells. The actual supply volume will be subject to formal sales orders. In response to media speculation that the group customer in the Americas might be Tesla, EVE stated, "The company's business is subject to the company's announcements."

CATL to List in Hong Kong

On the evening of December 26, CATL released multiple announcements, including the approval of a proposal to issue H-shares and list on the Hong Kong Stock Exchange. CATL stated that to further advance its global strategic layout, build an international capital operation platform, and enhance its overall competitiveness, the company plans to issue overseas-listed foreign shares (H-shares) and apply for listing on the main board of the Hong Kong Stock Exchange. At the same time, the company will fully consider the interests of existing shareholders and the conditions of capital markets at home and abroad, and will complete the issuance and listing within the validity period of the shareholders' meeting resolution (i.e., within 18 months from the date of approval by the shareholders' meeting or any other extended period agreed upon). This signifies substantial progress in CATL's secondary listing, which is expected to be completed by June 2026 at the latest. By then, CATL's global strategic layout will accelerate, and its international image and overseas financing capabilities will also improve.

Chuneng Secures 5GWh ESS Order

On December 26, Chuneng New Energy announced on its official platform that the company had signed a 5GWh ESS project cooperation agreement with its Indian partner at Chuneng's global headquarters. The two parties will engage in in-depth cooperation on Chuneng's 5MWh battery prefabricated cabin CORNEX M5 ESS project. Specifically, Chuneng New Energy will reach a 5GWh ESS framework cooperation agreement with its Indian partner to supply the Indian market with Chuneng's independently developed 20-foot 5MWh battery prefabricated cabin CORNEX M5-series products. Two phases of the project are scheduled to commence in 2025, with scales of 220MWh and 750MWh, respectively.