Rongbai Technologies announced on March 16 that it plans to adjust the ownership structure of its wholly-owned subsidiary in Korea in order to achieve long-term participation in the lithium power market in North America.
The announcement shows that South Korea's JS currently has three major business sectors, one is the layout of South Korea's ternary cathode production capacity, South Korea's JS has built an annual output of 27,000 tons and 40,000 tons of high-nickel ternary cathode production capacity, specifically for the North American market . Up to now, the company has invested 2.472 billion yuan in Zhongzhou Cathode Material Factory in Korea. Second, South Korea's ternary precursor production capacity layout, South Korea's JS holding subsidiary EMT has 0.6 million tons/year precursor production capacity, its production of precursors is mainly supplied to South Korea JS for the production of high nickel cathode materials. Third, the European ternary cathode capacity layout, South Korea JS through a wholly-owned subsidiary JSENERGYEUROPESP. ZO. O. (Hereinafter referred to as "Poland JS") in Poland to build capacity, specifically for the European market.
However, with the introduction of the Great America Act in July 2025, the criteria for identifying "prohibited foreign entities" (hereinafter referred to as "PFE"), enterprises with more than 25% of Chinese entities holding shares will be identified as PFE, and their downstream North American customers will not be able to apply for 45X tax subsidies. South Korea's JS has also been excluded from the North American market. JS in
Korea is 100% owned by the company and is recognized as PFE, while its ternary production capacity built in Korea can not be effectively supplied to China and Europe due to economic reasons and the requirements of localized production in the European Union, and can only face the North American market, but because of PFE status, it will lose all North American customers, which will eventually lead to idle production capacity. South Korea's JS continued to suffer losses and asset impairment, which seriously damaged the company's interests. In the announcement
, Rongbai Technologies said that in order to meet the requirements of overseas local policies, the company has participated in the lithium power market in North America for a long time, revitalized the assets of Korean production lines, and protected the interests of the company and small and medium shareholders to the greatest extent, Rongbai Technologies intends to adjust the ownership structure and business of its Korean subsidiaries to ensure that the company will continue to do so. Reduce the Chinese background shareholding ratio to less than 25% in order to obtain Non-PFE status.
According to the overall business adjustment plan of Rongbai Science and Technology , JS, a wholly-owned subsidiary of the company, intends to separate into two main bodies. Korea JS ( "Korea JSOld") and JAESETECH CO., LTD. ( "Korea JSNew"). South Korea's JSOld will hold 7000 tons/year ternary cathode production capacity in Phase 1-1. JSNew of Korea is used to undertake the production assets of 20,000 tons/year of Phase 1-2 and 40,000 tons/year of Phase 2 ternary cathode materials, EMT precursor production capacity and Polish cathode production capacity held by JS of Korea.
The company intends to Amkobay NewEnergyHoldingPte. Ltd. (Hereinafter referred to as "Singapore AKB") and Amkobay NewEnergyCo. Ltd. (Hereinafter referred to as "Korea AKB") transfers 31% and 69% of the equity of Korea JSOLD respectively, and sells the equity at a price not lower than appraisal value. After the completion of this
transaction, Korea AKB will gradually purchase the remaining production capacity of Korean JSNew based on the financing progress, excluding EMT and Polish JS; After the completion of the above
transaction, Singapore AKB, as Non-PFE, will undertake the 67,000 tons/year ternary production capacity currently held by Korea JS and carry out North American business. The company will continue to participate in the development of the North American market by holding 24.9% of the shares of Singapore AKB.
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