On November 25, Lopal Technology announced that the Second Supplementary Agreement and the Original Agreement signed between the company and Cornex New Energy and its subsidiaries carry risks related to industry fluctuations and changes in customer demand. The Second Supplementary Agreement and the Original Agreement stipulate varying supply volumes for different years during the cooperation period.
The total LFP supply for 2026 is 100,000 tonnes, while the annual supply from 2027 to 2030 is 300,000 tonnes. If the commissioning of new production capacity by the customer falls short of expectations, the lithium battery industry experiences overall volatility, industry demands for product performance and technological pathways shift, or competition from other qualified suppliers of Cornex New Energy intensifies, the actual demand for the company's products may differ from the initial projections made at the time of signing the agreements. This could subsequently impact their procurement commitments to the company. Additionally, risks such as failure to deliver supplies on time or failure to meet product quality standards may lead to breaches of contract and compensation liabilities. The long execution cycle of the agreements introduces uncertainty in revenue recognition.
Edited by Cassie Li, lixiangying@mysteel.com
