HLP News & Events

Hongli Group entered into a non-binding Memorandum of Understanding with Sidus Energy Storage to explore a potential strategic manufacturing collaboration relating to advanced battery and energy storage products targeting the high-growth North American and European energy storage markets. This proposed collaboration represents a further step in Hongli Group's clean energy evaluation. It follows the Company's recent initiatives over the past two months, including the planned formation of its New Energy Solid-State Battery Division and the engagement of Dr. Phillip A. Medina IV as Independent Technical Advisor to capture high-margin energy storage opportunities. This strategic MOU is designed to leverage Hongli Group's deeply entrenched industrial manufacturing capabilities alongside Sidus's battery technology. Sidus has licensed foundational battery technology from IBM and has successfully developed advanced battery products characterized by high energy density. The parties intend to jointly evaluate product development, automated production feasibility, capacity planning, and supply chain localization. As contemplated by the MOU, Hongli Group is expected to contribute its extensive mass-production experience, scalable operational infrastructure, and business expansion expertise to support the proposed collaboration, including with respect to the potential development, construction and operation of manufacturing facilities. The Company's precision profile design is suited to optimize the structural integrity and cost-efficiency of battery enclosures, packs, and racking infrastructure. Sidus is expected to contribute to its IBM-licensed battery technology, product know-how, technical specifications, and established commercial pipelines to accelerate time-to-market.

Hongli Group plans to establish a New Energy Solid-State Battery Division as part of its broader strategy to explore opportunities in the clean energy, advanced materials and energy storage sectors. The planned division follows the company's initiatives to explore opportunities in clean energy, energy storage applications, and solid-state lithium battery-related technologies. The New Energy Solid-State Battery Division is expected to focus on business opportunities related to key materials, structural components, production process support, and industrial applications associated with solid-state battery technologies. The New Energy Solid-State Battery Division is currently in the planning and preliminary development stage, and intends to provide additional updates as appropriate based on future developments.

Hongli Group announced its strategic decision to explore opportunities in the clean energy and energy storage sectors. The Company plans to leverage its existing manufacturing expertise, product customization capabilities and industry know-how, with an initial focus on developing products and components that may be used in solid-state battery and other energy storage applications. The Company believes that its experience in designing and manufacturing customized steel profile products may provide a foundation for developing products and solutions for customers in clean energy and energy storage applications. According to the International Energy Agency, global renewable power capacity is projected to increase by almost 4,600 GW between 2025 and 2030. This growth has been supported by a shift in economics. According to Our World in Data, solar photovoltaic costs have fallen by 90% in the last decade, and onshore wind by 70%.

Hongli Group announced that on October 3, the company received a notification letter from Nasdaq stating that it has regained compliance with the minimum bid price requirement. Nasdaq made the determination after the closing bid price of the company's ordinary shares was $1.00 per share or greater for 12 consecutive business days from September 16 to October 1. The company stated the matter is now closed.