Profits surge by 640%—GEM goes all out!

According to the announcement, following the collaboration, a breakthrough in ultra-high-energy-density battery technology is expected within one year, and industrialization of all-solid-state batteries and other lithium batteries with energy density exceeding 400 Wh/kg is targeted within three years. On the downstream side, humanoid robots have achieved successful application. In addition to Wolong Electric Drive, GEM has also entered the supply chains of Unitree Robotics and Siasun Intelligent. On April 10, 2025, GEM deepened its cooperation with Siasun Intelligent, deploying 27 intelligent robots of various types. In its earnings briefing in May 2025, GEM further revealed that the battery materials used in Unitree’s humanoid robots are supplied by GEM. Having successfully integrated both upstream and downstream operations, GEM now stands at the center of a massive market. Regarding overseas expansion, GEM and CATL are moving in unison. In 2018, GEM, CATL, and Tsingshan Holding jointly invested approximately RMB 1.85 billion to build a laterite nickel mine project in Indonesia—the first batch of Chinese battery enterprises to establish overseas manufacturing facilities. From 2018 to 2024, GEM generated over RMB 42.118 billion in overseas revenue. Entering 2025, GEM continues to strengthen its overseas footprint. In March 2025, GEM carried out its largest-ever executive reshuffle: 23 senior executives saw changes in their positions. A notable shift was the increased number of vice presidents specifically assigned to overseas business. On one hand, GEM optimized its overseas capital structure. In 2024, GEM incurred losses on its investment in ECOPRO MAT, resulting in a fair-value loss of approximately RMB 662 million, which brought its net profit for the year to RMB 1.02 billion—a mere 9.19% increase year-on-year. Excluding this loss, GEM’s non-recurring net profit for 2024 reached RMB 1.291 billion, representing a 636.24% year-on-year growth. This indicates that the company’s core operations continue to improve—though this performance was temporarily obscured. GEM acted swiftly: in Q1 2025, it sold part of its equity stake in ECOPRO MAT, recovering RMB 588 million in cash and locking in gains ahead of schedule. On the other hand, GEM expanded industrial chain partnerships. On April 11, 2025, GEM signed an agreement with ECOPRO—the largest Korean NCA cathode material manufacturer—to jointly develop a “nickel resources + new energy materials” industrial chain in Indonesia. ECOPRO, Korea’s first enterprise to develop and mass-produce high-nickel cathode materials, boasts globally leading technology; this partnership has already secured access to Japanese, Korean, and European markets. Per GEM’s plan, its cathode material revenue will achieve a compound annual growth rate (CAGR) of 55% from 2025 to 2027. Thus, ternary cathode materials will serve as GEM’s primary engine toward entering the Fortune Global 500. However, relying solely on ternary materials would clearly be insufficient for GEM to reach USD 30 billion in revenue. GEM possesses another “ace up its sleeve”—urban mining. Battery lifespan is affected by multiple factors, with typical warranty periods around eight years. It is projected that power batteries will enter a phase of large-scale scrapping in 2026, and their scrapping and recycling volumes will explode by 2030. Recycling of second-hand batteries thus emerges as one of the largest green industries for future power batteries. Founded in 2001, GEM’s mission has always been: turning waste into treasure—and restoring green beauty to our planet.

Goldman Sachs’ latest research report: despite explosive energy storage demand, battery overcapacity remains unresolved; global battery supply-demand ratio may not bottom out until 2029, with target prices for some Korean firms cut by 12%.

Specifically, Goldman Sachs expects the battery supply-demand ratio outside China to bottom out in 2027. The supply-demand ratio outside China is projected to reach its nadir in 2027. Excluding potential Chinese export supply, the ratio of battery demand to local supply outside China is forecast to stand at 104% in 2027—down from 110% in 2026. However, if potential Chinese export supply is factored in, this ratio will decline from 33% in 2026 to 32% in 2027. This implies that, considering only domestic production capacity, battery demand outside China still slightly exceeds supply; yet once potential Chinese exports are included, supply will significantly surpass demand. Goldman Sachs forecasts that by 2030, these two ratios will rebound to 131% and 40%, respectively. Even by 2030, the supply-demand ratio outside China—including potential Chinese export supply—will remain at a relatively low level. By contrast, the global battery market’s supply-demand ratio is not expected to bottom out until 2029. Goldman Sachs attributes this primarily to continued expansion of battery supply capacity and the gradual normalization of energy storage demand—leading to further declines in utilization rates for Chinese energy storage batteries, thereby prolonging the global battery market’s supply-demand adjustment cycle. Downward revisions to earnings forecasts for multiple battery companies, with some target price cuts reaching 12% Based on updated industry supply-demand assessments, Goldman Sachs concurrently adjusted earnings forecasts and target prices for several Korean battery-industry companies. Goldman Sachs notes that slower-than-expected recovery in EV battery profitability, weak U.S. demand, and persistent competitive pressure from Chinese battery manufacturers in the European market were key drivers behind this revision. Specifically, Goldman Sachs lowered average EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) forecasts for Korean cell manufacturers by 10% for both 2027 and 2028, while reducing average earnings forecasts for Korean cathode material producers by 6% and 7%, respectively, for the same years. Meanwhile, Goldman Sachs reduced the 12-month target prices for Korean cell manufacturers by an average of 7%, and those for cathode material producers by an average of 9%. Goldman Sachs’ latest ratings and 12-month target price adjustments for major Korean battery companies: LG Chem’s target price was cut from KRW 480,000 to KRW 430,000—a reduction of approximately 10%; LG Energy Solution’s target price fell from KRW 520,000 to KRW 480,000—about 8% lower; Samsung SDI’s target price declined from KRW 695,000 to KRW 630,000—roughly 9% down. Among cathode material producers, POSCO Future M’s target price was reduced from KRW 130,000 to KRW 115,000, and Ecopro BM’s target price dropped from approximately KRW 108,400 to KRW 95,000—both cuts amounting to roughly 12%.

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