EnerSys Beats Q1 Estimates, Guides Higher for Q2

Goldman Sachs has identified Contemporary Amperex Technology Co and Jiangsu Zenergy Battery Technologies Group as its top picks in China's battery sector. CATL, the world's largest battery manufacturer, ranks first on leading scale, battery technology and cost competitiveness, with Goldman Sachs setting a 12-month price target of HK$947 for its H-shares and RMB565 for its A-shares under a sum-of-the-parts valuation. The bank points to CATL's shift from cells to integrated energy solutions as a key value driver, supporting share consolidation, higher project value capture, recurring service revenue and stronger margins. Zenergy takes second place as an underappreciated high-growth EV battery platform founded in 2019, benefiting from auto-component expertise inherited from Fuyao Glass and described by Goldman Sachs as the fastest EBITDA growth in its coverage universe. The bank maintains a Buy rating on Zenergy with a price target of HK$9, noting it trades at a significant discount to peers. Risks cited for both names include slower-than-expected EV and energy storage demand, rising raw material costs and intensifying competition.

Gotion has launched global delivery for what will be Africa's largest AC-coupled energy storage project, with the first 50 heavy-duty trucks carrying its self-developed Gotion Grid 5MWh storage systems departing simultaneously from its Jinzhai and Nantong facilities on Sept. 28. The shipment came within three months of signing, a pace Gotion attributes to its vertically integrated supply chain and upstream-downstream coordination. The Gotion Grid systems will serve Egypt's Nefertiti and Horus projects, the country's first large-scale standalone storage projects and, once completed, Africa's largest standalone storage facilities. Developed by AMEA Power and built by China Energy Engineering Group, the projects are designed to strengthen grid stability, support solar and wind integration, and advance Egypt's 2030 clean energy goals, with systems upgraded for extreme heat, sandstorms and salt fog and offering high-voltage stability, high safety and millisecond-level response. Hussain Al Nowais, Chairman of AMEA Power, said the shipment opens a new stage of broader cooperation, while Li Chen, Senior Vice President of Gotion and President of Gotion Americas, called Egypt Gotion's key step into the Middle East and North Africa.

Fluence Energy has entered into a multi-year master supply agreement with EVE Power, a global lithium battery manufacturer, to secure battery cells for its energy storage systems. Under the agreement, EVE Power will supply battery cells for Fluence's energy storage solutions, supporting the company's efforts to strengthen supply chain resilience and meet growing customer demand. The deal forms part of Fluence's broader global supply strategy, giving it greater visibility into supply availability and costs while it pursues domestic content offerings in the United States and potential localization opportunities in other regions. The company said reliable access to advanced lithium battery technology could help it execute large-scale storage projects more efficiently and reduce supply-related uncertainties. Separately, Tesla announced in March that it is collaborating with South Korea's LG Energy Solution to buy $4.3 billion worth of lithium iron phosphate battery cells, to be manufactured at a Lansing, Michigan factory starting in 2027. Fluence shares currently carry a Zacks Rank #5 (Strong Sell).

Chinese battery maker Gotion High-Tech will invest 1.1 billion euros, or 1.25 billion dollars, in Volkswagen's plant in Valencia in eastern Spain. As part of a broad partnership plan to jointly build a European battery supply chain, the investment will give Gotion High-Tech a 49 percent stake in VW battery unit PowerCo's Valencia plant, with PowerCo retaining a majority stake. The plant will become the European production base for lithium iron phosphate batteries. PowerCo, meanwhile, will invest 470 million euros in two of Gotion High-Tech's sites, a battery plant in Suraly in southern Slovakia and a new cathode materials production facility in Kenitra in northwestern Morocco, taking a 49 percent stake in each. Volkswagen is Gotion High-Tech's sole largest shareholder, holding 24 percent.