Huayou Cobalt unit inks major lithium battery material supply deal with EVE Energy

Zhejiang Huayou Cobalt's subsidiary, Chengdu Bamo, has signed a "Product Supply Framework Agreement" with Huizhou EVE Energy Co., Ltd. (EVE Energy). This agreement stipulates that Chengdu Bamo's Hungarian factory will supply approximately 127,800 tonnes of high-nickel ternary cathode materials to EVE Energy's Hungarian factory between 2026 and 2035. About 126,500 tonnes are specifically designated for the 2027-2031 period. The estimated sales volume is preliminary and subject to final purchase orders.

The agreement, effective upon signing, is expected to positively impact Huayou Cobalt's operating performance once formal bulk deliveries commence, though it will not significantly affect current-period results. The company plans to recognize revenue based on specific orders and accounting principles.

Key risks include potential non-fulfillment due to policy, market, environmental, or customer demand changes, as well as possible delays in supply or quality issues. The agreement does not constitute a performance commitment.