Good News on Listing | Frost & Sullivan Assists Zhongwei New Materials Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2579.HK)

Zhongwei New Materials Co., Ltd. (hereinafter referred to as 'Zhongwei Shares') successfully listed on November 17, 2025. The company issued a total of 104 million H shares, of which 90% were international offerings and 10% were public offerings. The maximum selling price per share was HK$37.8, raising a total of up to HK$3.94 billion (before the green shoe mechanism).

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, and over the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 47 (market share 72%), 62 (market share 69%), and 162 (market share 70%) Hong Kong stock listings, ranking first in terms of number, with rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• In the nickel-based material cathode precursor (pCAM) market, the company has ranked first in global shipments for five consecutive years from 2020 to 2024;

   

• In the cobalt-based material cathode precursor (pCAM) market, the company has ranked first in global shipments for five consecutive years from 2020 to 2024;

   

• Since 2017, the company has continuously maintained a leading shipment volume and high market share in niche markets such as ternary precursors, cobalt tetroxide, iron phosphate, and lithium iron phosphate;

   

• The company has been deeply involved in key new energy raw materials for over a decade and is a leader in China's continuously growing new energy industry.

New energy batteries can be mainly divided into ternary batteries, lithium cobalt oxide (LCO) batteries, lithium iron phosphate (LFP) batteries, and emerging technology routes such as sodium-ion batteries based on different core chemical elements. These battery technologies are not only widely used in mature scenarios such as electric vehicles, consumer electronics, and energy storage systems but are also gradually expanding into emerging fields with broad prospects such as robotics, electric ships, and drones. The main end applications of the new energy battery market include power batteries, energy storage system batteries, and consumer electronics batteries. The shipment volume of new energy batteries increased from 260.6 GWh in 2020 to 1,393.2 GWh in 2024, and it is expected to further grow to 6,019.1 GWh by 2030, with a compound annual growth rate of 27.6% between 2024 and 2030.

Global New Energy Battery Market Shipments (by End-Use) from 2020 to 2030

Source: Analysis by Frost & Sullivan

In the cathode material system, nickel-based materials mainly include NCA/NCM as the cathode active material, as well as NCA/NCM hydroxides or oxides as precursors. With the continuous improvement of battery energy density requirements, the nickel content in ternary materials has been continuously increasing, evolving from early NCM/NCA523, NCM/NCA622 to the NCM/NCA811 series, and further upgraded to the NCM/NCA90 series. This trend has not only significantly increased the energy density of batteries, meeting the demand for longer cruising ranges in high-end electric vehicles, but also effectively reduced the proportion of cobalt usage, promoting the development of battery material systems towards higher performance and better cost structures. Based on different nickel contents, nickel-based precursors can be divided into medium-nickel, high-nickel, and ultra-high-nickel categories. In recent years, driven by the continuous growth in market demand for high-energy-density batteries, the high-nickel and ultra-high-nickelization of ternary precursor materials have become clear technical development directions. Between 2020 and 2024, global nickel-based pCAM shipments increased from 472,000 tons to 962,000 tons, with an annual compound growth rate of 19.5%. With the further expansion of the new energy vehicle market, the commercialization of solid-state batteries, and the development of emerging scenarios such as electric ships and low-altitude aircraft, the demand for nickel-based pCAM is expected to maintain steady growth. It is estimated that by 2030, global nickel-based pCAM shipments will further increase to 3.104 million tons, with an annual compound growth rate of 21.6% between 2024 and 2030.

Ni-based PCAM shipments (by product type) from 2020 to 2030

Source: Analysis by Frost & Sullivan

Global cobalt-based materials mainly include LCO used as CAM and cobalt tetroxide used as pCAM. LCO batteries manufactured using cobalt tetroxide pCAM are primarily applied in the consumer electronics sector, including smartphones, computing devices, wearable devices, and other products. With the overall demand for downstream 3C electronics increasing, global cobalt-based pCAM shipments have shown a steady growth over the past few years. Global shipments increased from 86,000 tons in 2020 to 102,000 tons in 2024, with an annual compound growth rate of 4.6%. As artificial intelligence continues to expand into the field of smart devices, the demand for high-performance batteries is also increasing. Therefore, it is expected that the market demand for cobalt-based pCAM will accelerate in the future, and global cobalt-based pCAM shipments are expected to increase to 210,000 tons by 2030, with an annual compound growth rate of 12.7% from 2024 to 2030.

Cooperate shipments (by product type) from 2020 to 2030

Source: Analysis by Frost & Sullivan

Phosphorus-based materials mainly include LFP, which serves as a cathode material (CAM), and iron phosphate (FP) compounds, which serve as anode materials (pCAM). The demand for LFP batteries varies due to cost, performance requirements, and industry priorities. As the demand for LFP batteries increases, global shipments of phosphorus-based CAM have risen from 245,000 tons in 2020 to 2.45 million tons in 2024, with an annual compound growth rate of 77.8%. It is expected to increase to 8.79 million tons by 2030, with an annual compound growth rate of 23.7% from 2024 to 2030.

The global shipments of phosphorus-based pCAM increased from 208,000 tons in 2020 to 2.205 million tons in 2024, with an annual compound growth rate of 80.4%. This further expands the cost advantage of LFP batteries. Technological breakthroughs and cost-effectiveness drive continuous increases in the shipments of phosphorus-based pCAM, which are expected to reach 8.253 million tons by 2030, with an annual compound growth rate of 24.9% from 2024 to 2030.

Phosphorus-based PCAM and CAM shipments (by product type) from 2020 to 2030

Source: Analysis by Frost & Sullivan

● Continuous growth of downstream mainstream applications

The continuous expansion in core areas such as electric vehicles, energy storage systems (ESS), and consumer electronics has driven steady growth in battery demand. The penetration rate of AI technology in applications such as autonomous driving and edge computing has increased further, adding to energy consumption and battery demand. In addition, the rapid expansion of data centers driven by AI development has led to a surge in energy storage demand. In the consumer electronics sector, the technological evolution of 5G/6G networks and AR/VR devices has strengthened the dependence on high-energy-density batteries, accelerated the material innovation process, and simultaneously boosted the demand for batteries and new energy materials as well as performance standards.

● Global energy transformation

The global energy transition driven by the shift from fossil fuels to renewable sources such as solar and wind energy is accelerating the demand for new energy batteries, thereby intensifying the need for materials for these batteries. As countries strive to achieve carbon neutrality and improve energy security, new energy batteries play a key role in stabilizing power grids, storing energy, and supporting the widespread adoption of electric vehicles. This growing demand is reshaping industries, driving investment in battery production and raw material supply chains, and positioning energy storage as the cornerstone of future energy systems.

● Emerging applications drive demand for high-performance materials

Innovation areas such as electric vertical takeoff and landing vehicles, humanoid robots, and AI-driven wearable devices have significant growth potential. These applications require extremely high energy density and discharge rates from batteries. High-performance battery technologies (such as high-nickel batteries and solid-state batteries) are expected to see a significant demand increase, further accelerating the development of advanced new energy materials.

● AI empowers science and drives industrial performance improvement

AI is comprehensively enhancing the performance of the new energy material industry chain, with its influence evident in R&D, production, and application. AI can predict material properties, significantly shortening the development cycle of new materials. In manufacturing, digital twin technology optimizes process parameters, and AI intelligent control systems improve line efficiency. Additionally, AI-based battery life prediction models enhance the accuracy of safety assessments, extend the operating cycle of battery systems, and indirectly drive material technology iterations.

● Policy coordination boosts industrial upgrading

Major global economies continue to support the transformation of the new energy battery material industry with strong policy support, driven by the deep integration of renewable energy and smart industry changes. For example, China has extended the exemption from new energy vehicle purchase taxes to boost demand, while the EU's 'Green Deal' has explicitly banned the sale of fuel vehicles by 2035. International policy trends are not only favorable to high-performance materials such as high-nickel ternary cathodes and silicon-carbon anodes but also strengthen circular economy initiatives. In addition, emerging industries are cultivated through the evolution of regulatory frameworks, promoting an integrated ecosystem of research and development, production, and application, thereby forming a complete industrial value chain.

● Vertical integration demand intensifies

Mastering upstream resources such as nickel, phosphorus, and lithium has become a key competitive advantage. Geopolitical fluctuations and supply chain disruptions prompt companies to accelerate localization of resources. Leading manufacturers ensure cost stability and raw material security through mineral investments or long-term supply agreements, and improve the overall efficiency from resource extraction to material production.

● Accelerated by technical iteration

AI technology is reshaping the material research model, from improving material screening efficiency to simulating electrochemical properties, significantly shortening the development cycle. Advanced material technologies such as high-nickel cathodes, solid-state batteries, and silicon-based anodes continue to evolve to meet higher energy density and safety requirements. At the same time, AI-driven intelligent manufacturing systems optimize production parameters and improve yield rates, driving the industry towards efficient and precise material innovation.

● Market concentration increases

The new energy materials and battery industry is showing a trend of two-way strengthening and integration. Large-scale enterprises continue to expand their market share by virtue of cost control, production efficiency, and R&D advantages. Small and medium-sized operators face dual barriers of technology and scale. Government policies further strengthen the market position of leading manufacturers, driving the industry towards higher concentration.

● Deepen customer collaboration

The collaboration models among new energy material producers, battery manufacturers, and automakers are trending towards deep integration, focusing on joint development of customized material solutions. Supply chain resilience and product consistency are strengthened through long-term supply contracts, closed-loop recycling systems, and joint R&D initiatives to support globalization expansion and regulatory compliance.