Hunan Yuneng New Energy Battery Material Co.,Ltd. (301358.SZ), a global leader in phosphate-based cathode materials for lithium-ion batteries, has submitted its listing application to the Hong Kong Stock Exchange on August 17. China Securities (International) and HSBC are acting as joint sponsors for the proposed IPO.

According to the prospectus, Hunan Yuneng is a world-class new energy materials company that combines technological innovation with advanced manufacturing capabilities. It focuses on the research, development, production, and sale of phosphate-based cathode materials, primarily lithium iron phosphate (LFP). The company is dedicated to providing high-performance, high-consistency, and cost-effective cathode materials for global new energy clients. Based on shipment volumes, data from Frost & Sullivan shows that the company has been the world's top phosphate-based cathode material supplier for six consecutive years from 2020 to 2025, holding a 28.2% share of the global market in 2025.

Hunan Yuneng's primary product line is LFP cathode materials, and it is strategically advancing into frontier products such as lithium manganese iron phosphate (LMFP), sodium-ion battery cathode materials, and solid-state battery cathode materials. These products are mainly used in power batteries and energy storage batteries, with core performance indicators leading the industry. The company has built a comprehensive R&D and process management system covering raw material selection, particle grading control, high-temperature solid-phase sintering, carbon coating, and doping. It has developed a strong R&D system and industrialisation capabilities for high energy density, consistency, long cycle life, and fast-charging performance, supported by a forward-looking technology strategy for continuous product iteration. The company's fourth-generation LFP product is already in mass production, while its fifth-generation product aims to further improve compaction density while maintaining excellent electrochemical performance. Additionally, a new LMFP material has been developed to meet the differentiated needs of downstream customers. R&D projects for sodium-ion battery cathode materials, lithium-rich manganese-based cathode materials for solid-state batteries, high-nickel NCM materials, and high-voltage LNMO cathode materials are progressing well.

Per Frost & Sullivan, Hunan Yuneng's leading technology, complete product portfolio, and the world's largest LFP production capacity have secured a broad and high-quality customer base. In 2025, the company achieved full coverage of China's top 10 power and energy storage battery manufacturers, and coverage of nine of the top 10 global power battery makers and all of the top 10 global energy storage battery makers. Leveraging its technological edge and capacity advantages, the company is actively expanding overseas, with product sampling and validation underway with several large international battery manufacturers, and plans for building overseas production capacity, including a base in Spain.

Financial Highlights

For the fiscal years ended December 31, 2023, 2024, and 2025, and the three months ended March 31, 2026, the company reported revenue of approximately RMB 41.36 billion, RMB 22.60 billion, RMB 34.63 billion, and RMB 14.97 billion, respectively. Gross profit for these periods was approximately RMB 2.83 billion, RMB 1.74 billion, RMB 3.15 billion, and RMB 2.42 billion, respectively. Profit for the year/period was approximately RMB 1.58 billion, RMB 590 million, RMB 1.27 billion, and RMB 1.36 billion, respectively.

Industry Overview

The lithium-ion battery industry is a cornerstone of the global green energy transition, driving low-carbon changes in transport and electricity. Its core applications are in power batteries, energy storage batteries, and other emerging areas. As lithium-ion battery shipments enter the TWh era, the industry is seeing a surge in demand for high-end capacity and a shift toward higher quality. Continued growth in the downstream electric vehicle and energy storage markets is injecting strong momentum. Consequently, global lithium-ion battery shipments grew from 323.2 GWh in 2020 to 2,243.1 GWh in 2025, at a CAGR of 47.3%, and are expected to reach 7,472.3 GWh by 2030, with a CAGR of 27.2% from 2025 to 2030.

By technology, LFP batteries have become the dominant lithium-ion battery technology, driven by their advantages in safety, cycle life, and cost. Their shipments surged from 82.3 GWh in 2020 to 1,520.2 GWh in 2025 and are projected to reach 5,795.2 GWh by 2030, a CAGR of 30.7% from 2025 to 2030. LFP's share of global lithium-ion battery shipments rose from 25.5% in 2020 to 67.8% in 2025 and is expected to reach 77.6% by 2030.

Driven by demand from power and energy storage batteries, global shipments of lithium-ion battery cathode materials grew from 800,000 tonnes in 2020 to 5.493 million tonnes in 2025, a CAGR of 47.0%. This is forecast to further increase to 16.546 million tonnes by 2030, a CAGR of 24.7% from 2025 to 2030. Phosphate-based cathode materials have shown the most significant growth due to their balanced performance across applications. Their global shipments are expected to rise from 4.037 million tonnes in 2025 to 13.48 million tonnes by 2030, a CAGR of 27.3%.

China, as a core market, leads the global development of lithium-ion battery cathode materials. China's cathode material shipments grew from 508,000 tonnes in 2020 to 5.017 million tonnes in 2025, a CAGR of 58.1%. This is expected to reach 14.926 million tonnes by 2030, a CAGR of 24.4% from 2025 to 2030. Specifically, China's phosphate-based cathode material shipments are forecast to grow from 3.892 million tonnes in 2025 to 12.757 million tonnes by 2030, a CAGR of 26.8%.

As the main type of phosphate-based cathode material, global LFP cathode material shipments grew rapidly from 127,000 tonnes in 2020 to 4.006 million tonnes in 2025, a CAGR of 99.4%. Future demand from downstream EV, energy storage systems, and emerging fields will continue to drive LFP battery demand, leading to strong demand for LFP cathode materials. Global LFP cathode material shipments are projected to grow further to 12.453 million tonnes by 2030, a CAGR of 25.5% from 2025 to 2030.

Board of Directors and Shareholding Structure

The company's board comprises ten directors, including three executive directors, three non-executive directors, and four independent non-executive directors. Their terms are up to three years, with eligibility for re-election upon expiry.

As of the latest practicable date (August 7, 2026), the company's shareholding is as follows: The Electrochemical Group, Xiangtan Electrochemical, and Zhenxiang State Investment hold approximately 9.03%, 5.67%, and 0.71% of the shares, respectively. Together, they control about 15.41% of the voting rights, constituting the single largest shareholder group. Additionally, CATL holds approximately 6.03%, Jinsheng New Materials holds about 6.94%, and the remaining shares are held by other institutional investors and public shareholders.

Intermediary Team

Joint Sponsors: China Securities (International) Corporate Finance Company Limited, HSBC Corporate Finance (Hong Kong) Limited. Company Legal Advisors: Paul Hastings (Hong Kong) (for Hong Kong and US law); Beijing Guofeng Law Firm (for PRC law). Joint Sponsors' Legal Advisors: Herbert Smith Freehills Kewei (for Hong Kong and US law); Commerce & Finance Law Offices (for PRC law). Auditor and Reporting Accountant: Forvis Mazars CPA Limited. Industry Consultant: Frost & Sullivan (Beijing) Inc., Shanghai Branch. Compliance Advisor: China Securities (International) Corporate Finance Company Limited.