On Tuesday, FRD announced a cooperation agreement with Contemporary Amperex Technology Co., Limited (CATL). In the next five years (2022-2026), CATL will purchase 3.6 billion yuan worth of die castings, liquid cooling plates, connectors, composite materials and other products from FRD. FRD will actively cooperate with the research and development and promotion of CATL’s projects while the actual purchase amount will be decided by CATL.
Both parties agreed that FRD should purchase corresponding equipment to expand production capacity in line with the purchasing demand of CATL, so as to ensure the timely delivery of the products needes. Once the supply is cut, CATL has the right to cancel the order and invalidate the agreement.
CATL is a world’s leading provider of lithium-ion batteries. It focuses on the research, development, production and sales of power battery systems and energy storage systems for new energy vehicles. FRD is mainly engaged in the research, development, design, production and sales of electromagnetic shielding materials and devices, thermal conductive materials and devices, base station antennas and related devices, protective functional devices, and can provide customers with overall solutions in related fields.
In 2019, 2020 and the first three quarters of 2021, FRD achieved revenues of 2.615 billion yuan ($411 million), 2.929 billion yuan and 2.014 billion yuan respectively. The company’s net profit was 351 million yuan, 209 million yuan and 143 million yuan respectively.
According to the 2020 annual report of FRD, the company has obtained the supply qualifications of GAC Motor, BAIC Group, SAIC, FAW, Changan Automobile, Jianghuai, Geely, Chinese Express, Skyline, CATL, Tesla, Shenzhen VMAX New Energy, Gotion High-tech, Farasis Energy and is actively communicating with other customers in the industry. The company has recently supplied some products in small batches.