Xingfa Group unit inks major lithium iron phosphate processing deal with BYD affiliate

Hubei Xingfa Chemicals Group Co. (Xingfa Group) announced its wholly-owned subsidiary, Hubei Xingshun New Materials Co., has entered into a commissioned processing agreement with Qinghai Forti Industrial Co.

Under the agreement, Xingshun New Materials will process 80,000 tons per year of lithium iron phosphate products for Qinghai Forti, receiving processing fees in return. The initial term is two years, effective from December 4, 2025, to December 4, 2027, with an option to automatically renew for an additional year.

This agreement is expected to positively impact Xingfa Group's operating performance. Qinghai Forti, a wholly-owned grandchild company of BYD Co., will provide lithium carbonate and additives, while Xingshun New Materials will supply other raw materials and facilities, adhering to BYD's technical standards.

Risks include potential changes in policy, market conditions, and increased industry competition in the lithium iron phosphate sector, which could affect product prices and order stability. The company's new energy segment accounted for approximately 3% of its total revenue from January to September 2025.