Street Calls of the Week
ZIBO, China - Sunrise New Energy Co., Ltd. (NASDAQ:EPOW), a small-cap energy company with a market value of approximately $30 million, announced Friday it plans to establish a 1GW lithium battery pack project in the United States through its newly formed subsidiary, Alchemistica Incorporated. The company has shown strong revenue growth of 44% over the last twelve months, though InvestingPro analysis indicates challenges with cash management and debt levels.
The facility aims to serve the growing energy storage market in North America, targeting both residential and commercial applications. The company did not disclose the project’s location, timeline, or investment amount in its statement. With a current ratio of 0.73 and significant debt obligations, the expansion plans come at a crucial time for the company’s financial position.
Sunrise said the initiative will be led by founder and CEO Haiping Hu, whom the company describes as having extensive experience in battery pack production and technology development.
The China-based manufacturer of graphite anode materials indicated the U.S. expansion would create synergies between its upstream materials business and downstream battery applications.
Sunrise currently operates a joint venture manufacturing facility in Guizhou Province, China, with a production capacity of 50,000 tons of graphite anode material, according to the press release.
The company stated the Chinese facility utilizes electricity from renewable sources, which it claims helps maintain lower production costs and environmental impact.
Sunrise New Energy is headquartered in Zibo, Shandong Province, and has been publicly traded on the Nasdaq since listing under the ticker EPOW. The stock has shown notable momentum recently, with a 31% gain over the past week. InvestingPro subscribers have access to 14 additional key insights about EPOW’s financial health and market performance.
In other recent news, Sunrise New Energy Co., Ltd. has been awarded a grant of approximately $0.59 million from the National Science and Technology Development Fund. This funding will support the company’s project focused on advancing industrial upgrades in Qianxinan prefecture, specifically through innovations in battery anode materials. The initiative aims to achieve significant advancements in design, precision control, and large-scale preparation of battery anode materials from various carbon sources. Additionally, Sunrise New Energy has commenced construction on a new graphite anode material production line with an investment of around $64 million. This facility, which will include pre-carbonization and high-temperature carbonization processes, is expected to begin operations later this year. The company projects that the new production line will generate approximately $110 million in annual revenue and $16 million in annual profit once it reaches full capacity. These developments highlight Sunrise New Energy’s ongoing efforts to enhance its production capabilities and innovate within the battery materials sector.
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