Sunrise New Energy signs $30 million graphite anode supply contract

DOVER - Sunrise New Energy Co., Ltd. (NASDAQ:EPOW) announced Tuesday that its subsidiary has secured a $30 million contract to supply synthetic graphite anode materials to Guizhou Jiaying Technology Co., Ltd. The deal comes as the company, currently valued at just $36.17 million in market capitalization, prepares to release its earnings report on December 5.

Under the agreement, Sunrise’s Guizhou subsidiary will deliver 10,000 tons of synthetic graphite anode materials over a one-year period. The materials will be used in lithium-ion batteries for grid-scale energy storage systems, commercial and residential storage, UPS backup power, and unmanned aerial vehicle applications.

The company said the contract is expected to increase capacity utilization at its Guizhou production facility, which has a total production capacity of 50,000 tons.

"This agreement is expected to deliver stable, meaningful revenue over the next year, drive higher utilization of our Guizhou production facility," said Haiping Hu, CEO of Sunrise, in the press release statement. The deal could provide much-needed financial stability for EPOW, which according to InvestingPro analysis, has been quickly burning through cash and operating with negative gross profit margins of -8.92%.

Sunrise New Energy, headquartered in Zibo, Shandong Province, China, manufactures graphite anode material for lithium-ion batteries through its joint venture. The company’s Guizhou facility operates using electricity from renewable sources, which the company claims helps reduce production costs and environmental impact.

The contract represents approximately 20% of the facility’s annual production capacity and will be fulfilled over the next 12 months.

Guizhou Jiaying Technology specializes in lithium-ion batteries and integrated energy storage systems, with multiple production lines serving various energy storage applications.

In other recent news, Sunrise New Energy Co., Ltd. has secured a significant sales contract valued at approximately $30 million for synthetic graphite anode materials. This agreement involves the supply of 10,000 tons of these materials to Guizhou Jiaying Technology Co., Ltd. over the course of one year. Additionally, the company has obtained a technological innovation patent for a multivariable particle size control system, which uses AI algorithms to enhance the production of graphite micro-powder. Sunrise New Energy was also granted another patent for an AI-enabled safety control system designed for graphitization furnaces, enhancing safety measures in the anode material graphitization process.

Moreover, Sunrise New Energy has co-developed an advanced chemical vapor deposition (CVD) fluidized bed system for silicon-carbon anodes in collaboration with Songci Electromechanical Technology Co., Ltd. This development aims to improve uniformity and consistency in silicon-carbon composite material production. These recent developments indicate the company’s ongoing efforts to enhance its technological capabilities and expand its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.