Huayou Cobalt secures LGES battery material deals, adjusts share structure

Zhejiang Huayou Cobalt has signed two major sales contracts with LG Energy Solution (LGES) and its subsidiaries. Its subsidiary, Quzhou New Energy, will supply LGES with 76,000 tonnes of ternary precursors from 2026 to 2030. Concurrently, its subsidiaries Chengdu Bamo and Bamo Technology Hungary KFT will supply LGES and LGES Poland with 88,000 tonnes of ternary cathode materials during the same period. These agreements are expected to positively impact the company's operating performance from 2026 to 2030.

Separately, the company completed the early redemption of its "Huayou Convertible Bonds." This redemption, effective September 29, 2025, resulted in the convertible bonds ceasing to trade and convert. The total share capital increased to 1,899,272,277 shares, driven by the conversion of convertible bonds into A-shares.

Additionally, Huayou Cobalt’s controlling shareholder, Huayou Holding Group, and Mr. Chen Xuehua, have updated their share pledge arrangements. Huayou Holding's pledged shares changed by 70,592,000 shares, while Mr. Chen Xuehua's pledges changed by 8,500,000 shares. As of the announcement date, 54.94% of their combined holdings, representing 11.29% of the total share capital, remain pledged.