HyperStrong and CATL Sign a Ten-year Agreement, Deepening Strategic Partnership Including 200 GWh Procurement Over Three Years
News Summary
On November 16, 2025, Beijing HyperStrong Technology Co., Ltd. (HyperStrong) and Contemporary Amperex Technology Co., Limited (CATL) signed a Strategic Cooperation Agreement, marking a new milestone in their long-term partnership. Under the agreement, HyperStrong will procure no less than 200 GWh of battery cells from CATL from January 1, 2026, to December 31, 2028, laying a solid foundation for the large-scale deployment of its global energy storage business. This three-year procurement commitment is part of a broader ten-year cooperation framework (January 1, 2026, to December 31, 2035), which includes annual reviews and updates of rolling three-year cooperation targets. The partnership will also expand into innovative business models, including the joint establishment of energy storage industry investment funds, creation of an integrated management platform for project development, investment, operation, and maintenance, and collaborative procurement of AC system components. Both parties aim to reinforce their competitive advantages, deepen synergy across the industrial chain, and promote efficient resource integration, jointly advancing technological progress and industrial upgrading of the energy storage sector to empower global energy transition.
Background
HyperStrong (688411.SH), founded in 2011, is a global leading provider of energy storage solutions with over 14 years of R&D experience and a track record of over 300 projects, delivering over 45 GWh of energy storage systems worldwide. The company offers a comprehensive portfolio of products and solutions for utility-scale, commercial, and industrial applications. Contemporary Amperex Technology Co., Limited (CATL) (300750.SZ, 03750.HK) is a global leader in new energy technology innovation, committed to providing premier solutions and services for new energy applications worldwide. By 2024, CATL's EV battery consumption volume has ranked No.1 globally for eight consecutive years, and it has ranked first in the market share of global energy storage battery shipments for four consecutive years. CATL has announced strategic goals of achieving carbon neutrality in core operations by 2025 and across the battery supply chain by 2035. The energy storage sector plays a critical role in global energy transition, essential for integrating renewable energy and stabilizing grids.
In-Depth AI Insights
What are the strategic implications and market impacts of this long-term collaboration for CATL and HyperStrong, respectively? - For CATL, securing a 200 GWh three-year procurement order (and a ten-year framework) ensures long-term sales volume and market share in energy storage batteries, particularly amidst accelerating global energy transition. This helps solidify its position as an industry leader and provides stable revenue expectations, mitigating risks of over-reliance on a single customer amidst geopolitical or economic fluctuations. - For HyperStrong, securing core battery supply for the next three years mitigates risks of supply chain disruptions and raw material price volatility. Partnering with a supplier of CATL's scale and technological prowess also enhances HyperStrong's competitiveness in the global energy storage solutions market, especially when expanding overseas, by offering more reliable and high-performance products. - Furthermore, the collaboration in investment, platform building, and collaborative procurement suggests deep vertical integration of the industrial chain, potentially forming stronger competitive barriers and making it harder for smaller competitors to enter. Beyond battery procurement, what potential investment opportunities and risks do the 'innovative business models' of this strategic cooperation point to? - The establishment of an 'energy storage industry investment fund' indicates both parties may strategically invest upstream in materials or downstream in application segments. This could optimize cost structures, cultivate new growth points, and strengthen control over the entire energy storage ecosystem. This offers investors opportunities to participate in the energy storage industry's expansion through funds or related industrial companies, but also carries the high risks associated with early-stage investments. - The development of an 'integrated management platform' aims to improve project development, investment, operation, and maintenance efficiency, potentially through digital and intelligent solutions, thereby reducing the LCOE (Levelized Cost of Energy) for energy storage projects and enhancing profitability. This could create investment opportunities in new software services or technology providers. - 'Collaborative procurement of AC system components' could accelerate the overall cost reduction of energy storage systems, promoting wider commercialization of energy storage technology. However, such deep integration might limit both parties' future flexibility in supply chain choices, potentially causing ripple effects if one party encounters issues. Given the re-election of the Trump administration, what geopolitical challenges might this Greater China-led global energy storage partnership face, and what are the implications for investors? - Despite both companies' commitment to global energy transition, the Trump administration's 'America First' policy may lead to stricter scrutiny and restrictions on critical technology supply chains. Energy storage, as a strategic emerging industry, could become a focal point of US-China technological competition. - Investors need to watch for potential new trade barriers, tariffs, or subsidy policies from the US and its allies targeting Chinese battery and energy storage technology. These could impact HyperStrong and CATL's expansion strategies and profitability in North American and other Western markets. For instance, the US might prioritize non-Chinese supply chains through measures like the Inflation Reduction Act. - Furthermore, the trend of 'de-risking' supply chains may prompt Western customers to seek alternative solutions, increasing the difficulty for Chinese companies to secure international orders. Investors should assess the long-term impact of such geopolitical risks on the global business layouts of both companies and consider the concentration risk in their portfolios tied to a single country or supply chain.