Huayou Cobalt secures major precursor supply deal until 2029

Zhejiang Huayou Cobalt Co., Ltd. announced the signing of a binding Memorandum of Understanding with a globally recognized customer for the supply of ternary precursor products. Under the agreement, Huayou Cobalt's subsidiaries will supply a total of 79,600 tonnes of ternary precursor products to the customer's designated buyer over the agreement's duration. The memorandum, which came into effect upon satisfaction of agreed conditions, is valid until March 31, 2029.

The company stated that while the agreement will not significantly impact its 2025 operating performance, it is expected to positively influence its operating results once formal deliveries commence. Revenue will be recognized in the relevant accounting periods based on specific order situations and income recognition principles.

This strategic move is expected to boost Huayou Cobalt's market share in the lithium battery new energy materials industry, enhancing its integrated development advantages and core competitiveness within the supply chain. The company advises investors to be aware of potential risks, including the long-term nature of the agreement, market and policy fluctuations, and price volatility of core raw materials.