Sunrise New Energy Co., Ltd. (NASDAQ: EPOW) announced a new supply agreement with Guizhou Jiaying Technology Co., Ltd. that will see Sunrise’s Guizhou subsidiary deliver 10,000 tons of synthetic graphite anode material over the next 12 months, creating a contract worth approximately $30 million.
The deal covers a range of battery applications, including grid‑scale energy storage, unmanned aerial vehicle (UAV) batteries, commercial and residential storage systems, and uninterruptible power supply (UPS) backup power. The contract is structured as a one‑year supply, with deliveries scheduled to begin in the first quarter of 2026 and conclude by the end of 2026.
For Sunrise, the agreement represents roughly 20 % of the 50,000‑ton annual capacity of its Guizhou facility. By locking in a steady stream of orders, the company can raise capacity utilization, improve operating leverage, and potentially expand margins—an important step for a firm that has been operating with negative gross profit margins of –8.92 % and a trailing‑12‑month earnings per share of –$1.08.
The contract provides a predictable revenue base that can help stabilize cash flow for a company that has been burning cash and reporting negative earnings. Management views the deal as a key milestone in deepening Sunrise’s presence in high‑growth energy‑storage and UAV markets, and as a foundation for future margin improvement as production scales.
Analysts noted that the announcement triggered a 6.1 % rise in the company’s stock price on the day of the announcement, reflecting investor optimism that the contract will deliver meaningful revenue visibility and support operational efficiency.
CEO Haiping Hu said the partnership “deepens our presence in the energy‑storage and UAV sectors and provides a stable revenue stream that will drive facility utilization and support margin expansion.” He added that the company remains focused on scaling production and improving cost efficiency to turn the contract into a long‑term competitive advantage.
Sunrise’s ability to convert this contract into sustained profitability will depend on its capacity to manage cash burn, maintain cost discipline, and expand into higher‑margin product lines. Nonetheless, the deal marks a significant step toward positioning the company for a larger share of the expanding electric‑vehicle and energy‑storage battery markets.
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