A listing by the world’s leading maker of electrolyte materials used in lithium batteries is likely to raise more than $1 billion
image credit: Bamboo Works
Key Takeaways:
- Tinci Materials has filed to list in Hong Kong, reporting its business rebounded last year after sharp revenue and profit declines in 2024
- The leading maker of electrolytes used in lithium-ion batteries is building new production bases outside China and diversifying into sodium ion battery materials
One thing that stands out about Guangzhou Tinci Materials Technology Co. Ltd. is the ages of its top managers. The average of the top three executives at the lithium battery materials maker is nearly 60 years old – something you don’t see too often at Chinese tech companies in emerging areas. That depth of experience is probably a factor helping Tinci to stay at the head of the pack of companies producing electrolytes used in lithium batteries that power not only portable devices like smartphones, but also many of the world’s new energy vehicles (NEVs).
But the track record for Tinci, which last week filed to list its shares in Hong Kong, also reflects the pain the NEV industry, including makers of batteries and their components, has felt over the last two years. The emergence of new technologies like sodium ion batteries is also providing a challenge for the company as it plays in a field where products are constantly changing.
Tinci isn’t sitting idly by while all that is happening, and is developing products for emerging new areas. Still, the rapid pace of change shows that it could easily be overtaken by other companies that develop better products, especially in the current climate where Western governments are trying to seize back some of the momentum from Chinese companies that have come to dominate the new energy sector.
All that said, Tinci looks pretty well positioned, at least for now. Unlike many others in the new energy sector, the company has managed to remain comfortably profitable over the last three years, though its profit fell sharply in 2024 at the height of a price war caused by oversupply. It began to recover last year, with its profits bouncing back.
The company is also trying to build up businesses in new areas, including manufacturing of chemicals used in daily …
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