According to bjx.com, on the evening of April 14th, Shandong Fengyuan Co., Ltd. issued an announcement stating that its wholly-owned subsidiary, Shandong Fengyuan Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Fengyuan Lithium Energy") recently signed the "Lithium Iron Phosphate Cooperation Framework Agreement" with Huizhou BYD Battery Co., Ltd. (hereinafter referred to as "BYD Battery"). Both parties agree to establish a stable, mutually trusting and mutually beneficial partnership regarding the procurement of lithium iron phosphate cathode material products and joint development for the period from 2025 to 2028. Through in-depth cooperation, they aim to achieve resource sharing and complementary advantages, and jointly promote the rapid development of both parties in the field of new energy materials.
Both parties agree that within the next three years (i.e., from April 1, 2025, to March 31, 2028), Fengyuan Lithium Energy will supply lithium iron phosphate cathode material products to BYD Battery. BYD Battery undertakes to give priority to using the products of Fengyuan Lithium Energy under the same business conditions and will allocate a certain procurement share. Fengyuan Lithium Energy will ensure the stable implementation of the above-mentioned supply, make reasonable production arrangements, and guarantee the stable supply of qualified products.
This agreement shall be effective from April 1, 2025, to March 31, 2028. If the starting date of the supply of qualified products is later than the above-mentioned effective date due to reasons such as equipment installation and debugging, this agreement shall be postponed and shall come into effect as of the date when Fengyuan Lithium Energy's various bases officially supply qualified products to BYD Battery, and the validity period shall be three years. Both parties may negotiate the renewal matters before the expiration of the agreement according to the cooperation situation. During the cooperation period, if both parties need to terminate the contract in advance due to certain reasons, they shall notify the other party 30 days in advance. After both parties confirm the cooperation matters and the accounts in transit, the withdrawal process shall be implemented.
Both parties will jointly commit to the research and development of cathode materials and cost optimization, and promote technological innovation and industrial upgrading. Fengyuan Lithium Energy will utilize its professional R&D team and technological accumulation to provide customized product solutions for BYD Battery. BYD Battery, in turn, will actively provide feedback on market demands and product performance requirements, facilitating the continuous iteration and upgrading of the products of both parties. During the contract period or after the expiration of the contract, without the consent of BYD Battery, Fengyuan Lithium Energy shall not sell the jointly developed products to any third party to ensure the confidentiality of the cooperation between the two parties.
The settlement price of lithium iron phosphate cathode material products shall be subject to the agreement reached through negotiation between the two parties and shall follow the principles of market fairness and justice. During the validity period of this agreement, both parties may, based on factors such as market changes and cost fluctuations, adjust the price mechanism upon negotiation and mutual recognition to ensure the maximization of the interests of both parties. The supply volume and price mechanism stipulated in this agreement will cover the existing and future lithium iron phosphate cathode material products jointly cooperated on by both parties of Fengyuan Lithium Energy, ensuring the comprehensiveness and in-depth nature of the cooperation between the two parties.
The specific cooperation matters covered by this agreement shall be subject to the business agreement signed by both parties.
Source：https://news.bjx.com.cn/html/20250415/1436900.shtml
