Sunrise New Energy Co., Ltd. (EPOW) announced a new supply agreement with Xiaolu Lithium that will deliver approximately 3,000 tons of anode material beginning in 2026. The contract, valued at roughly USD 11 million, targets high‑rate discharge applications such as unmanned aerial vehicles, large‑scale energy storage systems, and power tools.
The agreement expands Sunrise’s customer base into the sodium‑ion and lithium‑ion battery markets, adding a new revenue stream that is expected to contribute significantly to the company’s 2026 shipment volumes. The 3,000‑ton commitment represents about 17 % of Sunrise’s 2025 revenue of USD 65 million, underscoring the deal’s materiality for a micro‑cap company.
Management highlighted that the contract reflects growing recognition of Sunrise’s advanced anode technology and product reliability. The company expects to deepen collaboration with high‑quality customers and to further expand shipment volumes through this partnership, positioning it to capture demand in high‑performance battery applications.
Financially, the $11 million deal adds a substantial, predictable revenue source that can help offset the company’s recent profitability challenges. Sunrise’s 2024 revenue grew 44 % year‑over‑year, but the company reported a net loss of USD 12.76 million. The new contract provides a clear path to revenue growth and may improve margin stability as production scales in the Guizhou plant, which benefits from inexpensive renewable electricity.
Investors remained cautious, reflecting concerns about the company’s ongoing profitability and broader market sentiment. The deal’s positive impact on revenue is tempered by the company’s negative earnings history and the need to demonstrate sustained profitability to fully realize the contract’s value.
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