Quick Takeaways
- Ronbay CATL LFP supply deal investigation puts focus on disclosure practices in China’s battery materials sector.
- The probe follows a record lithium materials order announcement that drew regulatory scrutiny.
On January 20, 2026, shares of Ningbo Ronbay New Energy Technology opened at the daily 20% limit-down before paring losses to about 11%, after the company disclosed it is under investigation by China’s securities regulator. The development follows intense attention on its recently announced supply agreement with CATL.
CSRC probe triggered by contract disclosure
Ronbay said in a Monday exchange filing that it received an investigation notice from the China Securities Regulatory Commission on January 18. The probe relates to suspected misleading statements in the company’s major contract announcement linked to the CATL supply agreement.
The Shanghai-listed firm stated it will fully cooperate with the investigation and emphasized that all company operations and business activities are currently proceeding normally. Despite this reassurance, investor sentiment was affected immediately after the disclosure.
Share reaction and market response
Affected by the investigation, Ronbay shares opened at the daily limit-down of 20% on Monday. As trading progressed, losses narrowed to around 11%, reflecting a partial recovery but continued caution among investors following the regulatory action.
Details of the CATL LFP supply agreement
On January 14, Ronbay announced that it had signed a lithium iron phosphate (LFP) cathode material procurement agreement with CATL. Under the deal, Ronbay is expected to supply LFP cathode material from the first quarter of 2026 through 2031.
According to the initial announcement, the total supply volume is expected to reach 3.05 million tons over the agreement period, with estimated total sales exceeding RMB 120 billion ($17.2 billion). The company described the agreement as the largest order to date in the lithium and battery industries, which drew widespread attention.
Exchange inquiries and clarification on order value
Following the announcement, the Shanghai Stock Exchange raised questions regarding the agreement. The exchange requested supplementary disclosure on specific annual production capacity requirements and Ronbay’s ability to fulfill its contractual obligations over the multi-year period.
In response last week, Ronbay clarified that the RMB 120 billion order value cited in the original announcement was an estimate and remains subject to uncertainty. In its latest response to the exchange on Monday, the company reiterated this position to address ongoing concerns.
LFP division and operational readiness
Ronbay also noted that it established a dedicated lithium iron phosphate division in September 2025. The move was aimed at consolidating research and development resources and securing stronger internal support from the group to back its LFP-related business expansion amid growing demand.
CSRC probe triggered by contract disclosure
Ronbay said in a Monday exchange filing that it received an investigation notice from the China Securities Regulatory Commission on January 18. The probe relates to suspected misleading statements in the company’s major contract announcement linked to the CATL supply agreement.
The Shanghai-listed firm stated it will fully cooperate with the investigation and emphasized that all company operations and business activities are currently proceeding normally. Despite this reassurance, investor sentiment was affected immediately after the disclosure.
Share reaction and market response
Affected by the investigation, Ronbay shares opened at the daily limit-down of 20% on Monday. As trading progressed, losses narrowed to around 11%, reflecting a partial recovery but continued caution among investors following the regulatory action.
Details of the CATL LFP supply agreement
On January 14, Ronbay announced that it had signed a lithium iron phosphate (LFP) cathode material procurement agreement with CATL. Under the deal, Ronbay is expected to supply LFP cathode material from the first quarter of 2026 through 2031.
According to the initial announcement, the total supply volume is expected to reach 3.05 million tons over the agreement period, with estimated total sales exceeding RMB 120 billion ($17.2 billion). The company described the agreement as the largest order to date in the lithium and battery industries, which drew widespread attention.
Exchange inquiries and clarification on order value
Following the announcement, the Shanghai Stock Exchange raised questions regarding the agreement. The exchange requested supplementary disclosure on specific annual production capacity requirements and Ronbay’s ability to fulfill its contractual obligations over the multi-year period.
In response last week, Ronbay clarified that the RMB 120 billion order value cited in the original announcement was an estimate and remains subject to uncertainty. In its latest response to the exchange on Monday, the company reiterated this position to address ongoing concerns.
LFP division and operational readiness
Ronbay also noted that it established a dedicated lithium iron phosphate division in September 2025. The move was aimed at consolidating research and development resources and securing stronger internal support from the group to back its LFP-related business expansion amid growing demand.
Company Press Release
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