Ganfeng's battery arm raises ~$150M to bet on big cells amid storage glut
What's the deal? Jiangxi Ganfeng Lithium Battery TechnologyDealroom has a profile for this one. Try Dealroom → has raised US$136.1M (roughly $150 million) in a growth equity round from bank-backed investors including Xingyin Financial Asset Investment and Gongrong Jintou No. 6. The round lifted its registered capital from about US$437.3M to US$482.6M, part of two funding rounds inside six months that together brought in more than US$316.3M of external capital.
Where's the money going? The cash targets a new 10GWh/year storage battery line and a self-developed 588Ah large-format cell line at the company's Nanchang base. Parent Ganfeng LithiumDealroom has a profile for this one. Try Dealroom → keeps its stake near 64%, so control is undiluted.
Why now? The move comes as the energy storage cell sector faces a glut: planned industry capacity tops 2TWh against 2026 global shipment expectations of just 850GWh. Regulators have begun surveying capacity, and some unstarted projects may see approvals delayed.
What's the bet? Ganfeng is wagering that overcapacity is concentrated in low-end, commoditised cells — the 314Ah and smaller class where a two-hour lithium iron phosphate system recently bid as low as US$0.05/Wh. Large cells remain a seller's market: 500Ah+ penetration was under 5% in the first quarter, with forecasts of 15% to 20% by year-end.
By the numbers: Battery products brought Ganfeng Lithium US$1.08B in the first half of 2026, up 163.22% year-on-year and about 33.9% of group revenue. But the unit's gross margin sat at just 12.43%, down 1.74 points and far below the group's 42.44% lithium-salt margin — classic revenue growth without matching profit.
Why bank money? The parent posted a US$585.3M first-half net profit and could likely have funded expansion alone. Choosing equity from bank-backed institutions — priced at US$0.41 per US$0.14 of registered capital — spreads risk at a time when lithium prices remain volatile. The parent swung from a US$2.82B net profit in 2022 to a US$285.2M loss in 2024.
What could go wrong? Ganfeng is a latecomer. CATL began mass delivery of 587Ah cells in June 2025 and has shipped over 5GWh; Ganfeng's 588Ah line only entered trial production in late August, with volume slated for year-end. Rivals including ChunengDealroom has a profile for this one. Try Dealroom →, REPTDealroom has a profile for this one. Try Dealroom → and CALBDealroom has a profile for this one. Try Dealroom → are also lining up 588Ah products.
The signal: The round shows capital still flowing into China's storage sector, but selectively — toward premium, high-capacity cells that buyers are carving out as separate procurement lots, and away from the price-war commodity segment. The window to scale before large cells too become crowded is narrow, and Ganfeng's ticket buys entry, not victory.
Read more: 36kr.com
Image credit: Generated with Gemini
