At the beginning of 2026, the lithium battery industry will usher in a heavyweight cooperation: Rongbai Technology and Ningde Times signed a procurement agreement for lithium iron phosphate cathode materials, agreeing to supply 3.05 million tons from the first quarter of 2026 to 2031, with an expected total transaction volume of over 120 billion yuan, setting a new industry record for single orders. As a leader in traditional ternary cathode materials, Rongbai Technology has been involved in the field of lithium iron phosphate for less than a year. This order not only demonstrates the recognition of downstream leaders, but also becomes a key opportunity for its business transformation.

Hundreds of billions of orders break industry records

The explosive demand for new energy vehicles and energy storage markets is driving the continuous expansion of lithium iron phosphate orders. By 2025, the total amount of public orders in the industry has exceeded 3.2194 million tons, corresponding to a total amount of over 112.3 billion yuan. Among them, two orders between CATL and Wanrun New Energy, and Chu Neng New Energy and Longpan Technology both exceeded 45 billion yuan. The 3.05 million ton order between Rongbai Technology and Ningde Times topped the industry with a transaction volume of 120 billion yuan, becoming the largest cooperation project in the marketization of lithium iron phosphate.

Rongbai Technology has long focused on ternary materials, but due to the downturn in the industry and the squeeze of lithium iron phosphate, the price of ternary materials has dropped by nearly three-quarters from its peak in 2022. The company's revenue and net profit have continued to decline from 2023 to 2024. In July 2025, the company officially entered the lithium iron phosphate track and quickly laid out its production capacity through overseas production lines and mergers and acquisitions. The landing of this order will provide stable revenue support, but the current gap between production capacity and a six-year supply of 3.05 million tons means that capacity expansion will become a core task.

Lithium iron phosphate is the key to transformation and breakthrough

During the same period of order disclosure, Rongbai Technology released its 2025 performance forecast, with an expected loss of 150-190 million yuan in net profit attributable to the parent company for the whole year. However, it achieved a profit of 30 million yuan in the fourth quarter, turning losses into profits in a single quarter. Behind this turning point, the potential of lithium iron phosphate business is gradually emerging. The industry predicts that the global demand for lithium iron phosphate will reach 5.8 million tons by 2026, and the industry is transitioning from "low-end surplus" to "high-end competition", with the fourth generation high-performance products becoming the profit core.

Rongbai Technology seizes the track with its technological advantages: streamlining the production process of iron phosphate from 15 to 6, reducing costs by 40% and consumption by 30%. Its key performance indicators are industry-leading, and it has completed the development of third and fourth generation products. At the same time, the North American recycling project has established an industrial chain advantage through cooperation with the European supply chain. If the processing fee increases by 3000 yuan/ton in 2026, the industry's gross profit margin is expected to rise to 7.5%, providing strong support for Rongbai Technology to create a second growth curve and promoting the concentration of industry resources towards leading technology-based enterprises.Editor/Bian Wenjun