Binding CATL! Lithium Iron Phosphate Leader Expected Orders Exceed 40 Billion!

(Source: Qidian Lithium Battery)

23 Days Countdown

2026 (Second) Qidian Lithium Battery Cylindrical Battery Technology Forum and Top 20 Cylindrical Battery Rankings Launch Event

Event Theme: Full-Tab Ear Technology Leap, Leading the Large Cylindrical Market

Event Date: April 10, 2026

Event Location: Venus Hall, 3rd Floor, Venus Royal Hotel, Bao’an, Shenzhen (Jingji Baina Store, Shenzhen International Convention and Exhibition Center)

Organizer: Qidian Lithium Battery, Qidian Research Institute SPIR

First Batch of Sponsors and Speakers: Penghui Energy / Duofuduo New Energy / Chune New Energy / Tianpeng Power / Lanjing New Energy / Yantai Lihua / Chuangming New Energy / Xiao Lu Lithium / Livi Energy / Lian Dong Tianyi / Dazhu Lithium Battery / Chengjie Intelligent / Yixin Feng / Jiazhi Xin Nuo / Fuyue Technology / Huapusen / Pengjin Intelligent / Gaoshi Technology / Chuanyuan Technology, etc.

Recently, Hunan Yune announced its projected related-party transaction amount with CATL in 2026.

According to the announcement, Hunan Yune expects that the total amount of routine related-party transactions with CATL and its subsidiaries, Jingxi Xiangtan Electrochemical, in 2026 will not exceed 32.687 billion yuan, and from January to May 2027, not more than 17.209 billion yuan. The total estimated transaction amount reaches 49.896 billion yuan.

In product sales, the company expects to sell 26.733 billion yuan worth of lithium iron phosphate and other products to CATL in 2026, significantly surpassing the actual and projected amounts of 2025; from January to May 2027, it is expected to reach 14.48 billion yuan, totaling approximately 41.213 billion yuan.

The announcement also shows that in the first two months of this year, the company has already sold products worth 2.426 billion yuan to CATL.

The projected related-party transaction amount for 2026 disclosed by Hunan Yune is the largest annual related-party transaction plan since its listing, showing a significant increase in scale compared to historical data.

In 2025, the actual sales amount to CATL was still somewhat below the projected amount, with a completion rate of about two-thirds. The difference mainly stems from fluctuations in the market price of lithium iron phosphate and adjustments in downstream battery production schedules.

Regarding the transaction cycle, this announcement not only covers the entire year of 2026 but also extends to January-May 2027, forming a long-term “annual + cross-period” cooperation plan. This breaks the previous routine of only annual disclosures, reflecting high confidence from both parties in cooperation stability over the next 1-2 years, and providing clear timing and scale anchors for Hunan Yune’s capacity release and CATL’s raw material supply.

For Hunan Yune, related-party transactions with CATL are the “ballast stone” for its performance growth in 2026. In 2025, the company’s net profit attributable to the parent is expected to be between 1.15 and 1.4 billion yuan, a year-on-year increase of 93.75%-135.87%. In 2026, the revenue contributed solely by related-party transactions with CATL will exceed 26.7 billion yuan, securing the full-year performance baseline and providing order guarantees for its 1.5 million-ton capacity release.

For CATL, partnering with Hunan Yune is a core implementation of its “upstream resource locking, midstream capacity locking” strategy.

By the end of 2025, CATL’s lithium battery capacity reached 772 GWh, with 321 GWh under construction (progressing steadily at Zhongzhou, Jining, Fuding, Liyang, Yibin, Hungary, and Indonesia battery projects). In 2026, CATL’s total battery capacity is expected to surpass 1 TWh, with lithium iron phosphate batteries making up the majority.

Through large-scale related-party transactions with Hunan Yune, CATL locks in nearly half of its core raw material supply, avoiding supply chain risks caused by fluctuations in supply and demand and price increases in the lithium iron phosphate industry, ensuring large-scale production of Kirin batteries and energy storage batteries, and consolidating its position as a global leader in power batteries.

Today, the relationship between the two is not just a simple “supplier-client” relationship but has evolved into a deep strategic partnership involving equity binding, business cooperation, and technological collaboration, setting a benchmark for upstream and downstream cooperation in the new energy industry chain.

In December 2020, CATL participated in Hunan Yune’s Pre-IPO strategic capital increase, becoming its third-largest shareholder. After Hunan Yune’s listing, CATL’s shareholding ratio, after dilution, remains among its top five shareholders.

From 2022 to 2024, the sales revenue share from Hunan Yune to CATL was 80.45%, 78.81%, and 58.44%, respectively.

On the supply chain level, both sides have achieved deep coordination. CATL provides procurement support for core raw materials such as lithium carbonate and ammonium phosphate, while Hunan Yune reduces raw material costs through self-supply of lithium iron phosphate and phosphate ore resource layout, ultimately realizing “cost control and profit sharing.”

To match CATL’s capacity expansion, Hunan Yune has laid out lithium iron phosphate capacity around CATL’s battery bases in Guizhou, Yunnan, Sichuan, and other regions, achieving “raw material origin to battery factory” close support.

In product and technology collaboration, Hunan Yune continues to optimize capacity structure, increasing the proportion of high-end lithium iron phosphate (high voltage, ultra-long cycle, high density) capacity. In 2025, the shipment proportion of high-end products increased from 30% at the beginning of the year to nearly 50% by year-end, with plans to raise it to 55%-60% in 2026. 70% of new capacity will be high-end, fully matching the raw material needs of CATL’s Kirin batteries and Shenxing batteries.

The two sides have established joint laboratories to develop next-generation technologies such as lithium manganese iron phosphate and solid-state battery cathode materials.

Hunan Yune and CATL are both global leaders in lithium iron phosphate cathode materials and power batteries. Their deep binding not only consolidates their respective leading positions but also reshapes the competitive landscape of the new energy industry chain.

Since 2020, Hunan Yune’s lithium iron phosphate shipments have ranked first globally. According to Qidian Research SPIR, in 2025, Hunan Yune continued to top the list of China’s top 10 lithium iron phosphate cathode material shipments.

The company’s clear plan: by 2026, total lithium iron phosphate capacity will exceed 1.5 million tons; in 2027, it will surpass 2 million tons; and in 2028, aim for 2.5 million tons, forming a “tripling” capacity expansion rhythm over three years, maintaining global leadership in lithium iron phosphate capacity.

In the next 3-5 years, as the global new energy vehicle and energy storage industries continue to explode, Hunan Yune, backed by leading partners like CATL, will fully benefit from industry dividends, upgrading from a lithium iron phosphate leader to a global cathode material leader, leading technological upgrades and reshaping the industry landscape.

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