Putailai Increases Overseas Production Capacity Layout, Plans to Invest 2.051 Billion Yuan to Build Anode Material Production Base in Malaysia

On March 11, Putailai (603659.SH) announced that the company, through its wholly-owned overseas subsidiary Zichen Malaysia Limited, plans to invest in the construction of a 50,000-ton annual lithium-ion battery anode material production project in Malaysia, with a total investment of $297 million (approximately RMB 2.051 billion). The funding for the project will come from the company’s free funds, and the construction period is 24 months.

Public information shows that Putailai mainly engages in the research, development, production, and sales of new energy battery materials and automation equipment, and provides OEM services for new energy battery electrodes. Its main business includes membrane materials and coating processing, anode materials, functional materials such as PVDF and binders, aluminum oxide and bauxite, as well as automated equipment and services for new energy batteries.

Putailai analysts state that since 2025, the global new energy battery market has been developing rapidly. The end-user markets, represented by electric vehicles, energy storage, and new consumer electronics, continue to grow quickly, offering broad market prospects. Domestic and international new energy lithium battery manufacturers are increasing their overseas presence, especially in Southeast Asia, to seize development opportunities in the new energy market.

From industry demand, as an important raw material for lithium batteries, anode materials directly benefit from downstream market expansion. According to EVTank statistics, China’s anode material shipments are expected to reach 2.922 million tons in 2025, a year-on-year increase of 38.1%, with a growth rate 14.5 percentage points higher than in 2024.

Regarding the impact of this investment on the listed company, Putailai states that the construction of the anode material production base will further improve the company’s overseas capacity layout, effectively meet downstream customer supply chain management and order demands, and help the company deepen its relationships with downstream clients while gaining long-term stable business opportunities domestically and internationally. This is significant for promoting the company’s long-term stable development and enhancing its competitive advantage in the anode business.

Putailai emphasizes in the announcement that this project still requires approval or filing from relevant Chinese government authorities, and the company must comply with local laws and regulations. There is uncertainty regarding whether the project will obtain the necessary approvals or filings, and the timing of such approvals remains uncertain.

Notably, in May 2023, Putailai disclosed plans to develop a 100,000-ton lithium-ion anode material integrated production base in Sweden. However, due to disagreements over conditions proposed by Swedish review authorities, the project was not approved. The company announced the termination of this project at the end of 2024. At that time, Putailai stated that it would actively communicate with overseas clients to seek alternative medium- and long-term supply solutions.

In 2025, Putailai is turning its focus to Malaysia. The annual report shows that in 2025, Zichen Malaysia Limited was newly established and included in the company’s consolidated financial statements. The company plans to focus on expanding its anode material capacity in Malaysia to meet the diversified supply needs of overseas customers.

Financially, in 2025, Putailai achieved operating revenue of RMB 15.711 billion, a year-on-year increase of 16.83%; net profit attributable to the parent was RMB 2.359 billion, up 98.14%. Regionally, the company’s revenue mainly comes from the domestic market, with RMB 14.595 billion in 2025, accounting for about 93%, a 22.29% increase year-on-year; overseas revenue was RMB 936 million, accounting for about 6%.