CATL, Fulin Precision deepen strategic ties, expanding into robotics field

Beijing (Gasgoo)- Fulin Precision and its majority-owned subsidiary, Jiangxi Shenghua New Materials Co., Ltd., ("Jiangxi Shenghua") have signed a strategic cooperation agreement with CATL, focusing on lithium iron phosphate (LFP) material R&D, capacity expansion, and intelligent robotics.

Photo credit: CATL

Under the deal, Jiangxi Shenghua will introduce CATL as a shareholder through a capital increase, with CATL investing 400 million yuan to acquire 18.74% equity. As a result, Fulin Precision's stake in Jiangxi Shenghua will dilute from 97.92% to 79.57%.  

This marks the third equity collaboration between the two companies. CATL previously increased its stake in Jiangxi Shenghua twice between 2021 and 2022, reaching a peak of 20% before exiting in October 2024. Their renewed partnership signals an expansion beyond cathode material supply into emerging fields like robotics.  

Since 2024, Fulin Precision has accelerated its entry into the robotics sector, viewing humanoid robots as an extension of its precision manufacturing capabilities. The company is focusing on high-value reducers, integrating harmonic and planetary reduction technologies. Its independently developed smart electric joints are undergoing prototype validation, and in October 2024, it partnered with robotics company AgiBot and others to form an industry alliance.  

Fulin Precision has launched a 110-million-yuan R&D base for smart electric joint modules, aiming to establish dedicated production lines for humanoid robots and robotic dogs. Additionally, 65.55 million yuan from a convertible bond project will support industrial-scale production, demonstrating the company's commitment to mass commercialization.  

CATL's robotics strategy is also diversifying. It established a Shanghai-based team in late 2024 to develop industrial robots, including robotic arms and AGVs. In humanoid robotics field, CATL's Future Energy Research Institute is co-developing bionic robots with Shanghai Jiao Tong University, while reports suggest an investment in GALBOT, a humanoid robot manufacturer. In the mobile robotics sector, CATL-linked capital participated in a $250 million-plus financing round for lawnmower robot firm Positec.