TMT Acquisition Corp Merger Partner, eLong Power Holding Limited, Received RMB480 Million (Approximately US$66 Million) Purchase Order for 600MWh Lithium Battery Energy Storage System
TMT Acquisition Corp (TMTC) and eLong Power Holding have announced a significant business development. eLong Power secured a RMB480 million (approx. US$66 million) purchase order for a 600MWh lithium battery energy storage system, scheduled for delivery by October 31, 2024. This marks eLong Power’s first major sales contract in the large-scale energy storage market.
The deal includes a 30% advance payment, a 60% payment upon delivery and installation, and a 10% balance after a year of quality assurance. The merger between TMTC and eLong Power, anticipated to close in the second half of 2024, aims to give eLong Power access to U.S. public equity markets and accelerate its business growth.
The global electrochemical energy storage market is expected to grow from 69GWh in 2022 to 652GWh in 2027, driven by renewable energy adoption and favorable policies. eLong Power’s advanced battery technologies and significant orders position it favorably in this expanding market.
- eLong Power secured a RMB480 million (approx. US$66 million) purchase order.
- The contract includes a 30% advance payment, ensuring early cash flow.
- Delivery of the 600MWh lithium battery energy storage system is expected by October 31, 2024.
- This is eLong Power’s first significant binding sales contract in the large-scale energy storage market.
- The merger between TMT Acquisition Corp and eLong Power is expected to close in the second half of 2024.
- eLong Power will gain access to U.S. public equity markets, facilitating business expansion.
- The contract includes penalties for late delivery by eLong Power and late payments by the buyer.
- The balance of 10% is subject to product quality assurances for a year after delivery.
Insights
**Financial Strength and Order Impact**
The announcement of the RMB480 million (approximately US$66 million) purchase order for a 600MWh lithium battery energy storage system is significant for eLong Power. This order represents a substantial revenue boost and a critical entry point into the large-scale energy storage market.
Given the payment terms—30% advance, 60% upon delivery and remaining 10% after a year—this deal improves the company's cash flow and reduces immediate financial risk. The presence of payment security clauses and penalties ensures reliable revenue flow and protects against potential project disruptions.
eLong Power’s recent entrance into the energy storage market and securing this sizable contract underscores its technical prowess and market potential. Investors should be aware, however, that while this order is a positive signal, it's important to monitor the company’s ability to deliver on time and maintain product quality to avoid penalties and secure the final 10% payment.
In the broader context, this order highlights the growing demand for energy storage solutions, driven by renewable energy adoption. Therefore, eLong Power is well-positioned within a rapidly expanding sector. Nevertheless, investors should remain vigilant regarding execution risks and market competition.
**Market Position and Expansion Potential**
eLong Power's foray into the energy storage market with this significant order marks a strategic pivot that aligns with global trends in renewable energy adoption and storage. The market for electrochemical energy storage is forecasted to grow at a 56.7% CAGR, expanding from 69GWh in 2022 to 652GWh in 2027, driven by supportive policies and decreasing costs of renewable technologies.
This contract positions eLong Power to capitalize on these trends, particularly in the Chinese market, which has robust government support for renewable energy and energy storage initiatives. The scalability of this project and the technical advancements in their battery technology, such as fast charging capabilities and high capacity, provide a competitive edge.
However, the market is competitive, with many established players. eLong Power’s ability to leverage this contract to stimulate further orders and partnerships will be key to maintaining momentum and market share growth. The strategic partnership with a major general contractor enhances their market credibility.
Retail investors should consider the long-term growth prospects tied to this market trend while being mindful of the competitive landscape and potential execution risks associated with large-scale projects.
Business Combination anticipated to close in the second half of 2024; battery storage delivery expected by October 31, 2024
NEW YORK, N.Y. and Ganzhou, China, June 24, 2024 (GLOBE NEWSWIRE) -- The merger partner of TMT Acquisition Corp (“TMTC”) (NASDAQ: TMTCU), a publicly traded special purpose acquisition company (SPAC), eLong Power Holding Limited (“eLong Power”), a provider of high power battery technologies for commercial and specialty vehicles and energy storage systems, announced that its wholly-owned subsidiary has signed a supply contract for energy storage systems valued at RMB480 million (approximately US
eLong Power has been dedicated to the development of high-power batteries since 2014, accumulating extensive technical experience and establishing a broad customer base in the lithium battery application field. The charging rate of the fast-charging batteries has been elevated from an initial 1-2C to 6C. The Company’s latest generation of high-power batteries can reach an
The electrochemical energy storage market, primarily driven by lithium-ion batteries, has experienced rapid growth, with its market share increasing from less than
TMTC AND ELONG POWER COMMENTS
eLong Power’s CEO, Xiaodan Liu, said, “We’ve had a terrific start in 2024. We have several new orders currently in progress and expected to be signed in the coming two months. We believe that the purchase orders will provide an additional growth driver for us and we are excited to make an impact and power the world with more clean and sustainable energy.”
DJ Guo, Chairman and CEO of TMTC said, “We are excited to that see eLong Power has secured a substantial purchase order. This significant milestone validates our decision to merge and demonstrates the combined entity’s potential to deliver long-term value to the shareholders. We look forward to supporting eLong Power’s continued success and realizing the full potential of the anticipated merger.”
PROPOSED BUSINESS COMBINATION OVERVIEW
TMTC and eLong Power entered into a definitive business combination agreement, dated December 1, 2023, as amended on February 29, 2024, that will result in eLong Power becoming a publicly traded company. Huizhou Yipeng Energy Technology Co., Ltd. (“Yipeng Huizhou”, together with eLong Power, the “Company”) is the operating entity of eLong Power. The transaction has been approved by the Board of Directors of both companies and is expected to close in the second half of 2024.
The business combination transaction with TMTC is expected to provide eLong Power with access to the U.S. public equity markets and thereby accelerate its business expansion and position eLong Power to explore additional growth and value creating opportunities.
IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND WHERE TO FIND IT
In connection with the proposed business combination, eLong Power intends to file a registration statement on Form F-4 that will include a proxy statement of TMTC and a prospectus of eLong Power. The proxy statement/prospectus will be sent to all TMTC shareholders. Before making any voting decision, securities holders of TMTC are urged to read the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed business combination as they become available because they will contain important information about the proposed business combination and the parties to the proposed business combination.
Investors and securities holders will be able to obtain free copies of the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by TMTC through the website maintained by the SEC at www.sec.gov. The documents filed by TMTC may be obtained free of charge by written request to TMT Acquisition Corporation, 420 Lexington Avenue, Suite 2446, New York, New York 10170.
PARTICIPANTS IN THE SOLICITATION
eLong Power and TMTC and certain of their respective directors, executive officers, and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitations of proxies from TMTC’s shareholders in connection with the proposed transaction. Information about TMTC’s directors and executive officers and their ownership of TMTC’s securities is set forth in TMTC’s filings with the SEC, including TMTC’s final prospectus of March 27, 2023, in connection with TMTC’s initial public offering and its Quarterly Report on Form 10-Q for the fiscal period ended March 31, 2024. To the extent that holdings of TMTC’s securities have changed since the amounts printed in TMTC’s final prospectus of March 27, 2023, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC.
Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in the proxy statement/prospectus when it becomes available. Shareholders, potential investors, and other interested persons in respect of eLong Power and TMTC should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources indicated above.
ABOUT ELONG POWER
eLong Power Holding Limited, a Cayman Islands exempted company, is committed to the research and development, manufacturing, sales and service of high-power lithium-ion batteries for electric vehicles and construction machinery, as well as large-capacity, long-cycle lithium-ion batteries for energy storage systems. Elong is led by Ms. Xiaodan Liu, Elong’s Chairwoman and CEO.
eLong Power has a comprehensive product and technology system that includes battery cells, modules, system integration, and battery management system development, based on high-power lithium-ion batteries and battery system products for long-cycle energy storage devices. eLong Power offers advanced energy applications and full lifecycle services. Its product portfolio includes products utilizing lithium manganese oxide and lithium iron phosphate, among others, to meet the needs of high-power applications and energy storage applications in various scenarios.
ABOUT TMT ACQUISITION CORP
TMT Acquisition Corp is a blank check company, also commonly referred to as a special purpose acquisition company (SPAC), formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. TMTC is led by Dajiang Guo, Chairman and Chief Executive Officer, and Jichuan Yang, Chief Financial Officer, who are growth-oriented executives with a long track record of value creation across industries.
FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the benefits of the transaction, the anticipated timing of the transaction, the products offered by eLong Power and the markets in which it operates, and eLong Power’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including, but not limited to: Such statements are made based on our expectations and beliefs concerning future events impacting eLong Power. You can identify these statements by the fact that they use words such as "believe," "anticipate," "estimate," "expect," "plan," “would,” "should," and "may" and other words and terms of similar meaning or use of future dates. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: the risk that the transaction may not be completed by TMTC’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by TMTC; the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the business combination agreement by the shareholders of TMTC; the satisfaction of the minimum net tangible assets amount following redemptions by TMTC’s public shareholders; the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; the effect of the announcement or pendency of the transaction on eLong Power’s business relationships, performance, and business generally; risks that the proposed business combination disrupts current plans or operations of eLong Power; the outcome of any legal proceedings that may be instituted against eLong Power or TMTC related to the business combination agreement or the proposed business combination; the ability to maintain the listing of TMTC’s securities (which would be eLong Power Inc. securities) on Nasdaq after the closing of the transaction; after the closing of the transaction, the price of eLong Power Inc.’s securities may be volatile due to a variety of factors, including changes in the competitive and highly regulated industries in which eLong Power Inc. will operate, variations in performance across competitors, changes in laws and regulations affecting eLong Power Inc.’s business and changes in its capital structure; the ability to implement business plans, forecasts, and other expectations after the completion of the proposed business combination, and identify and realize additional opportunities provided by the business combination; its need for substantial additional funds; the parties’ dependence on third-party suppliers; risks relating to the results of research and development activities, market and other conditions; its ability to attract, integrate, and retain key personnel; risks related to its growth strategy; patent and intellectual property matters; and the parties’ ability to obtain, perform under and maintain financing and strategic agreements and relationships. These risks have been and may be further impacted by Covid-19 and global geopolitical events, such as the war in Ukraine and the Middle East. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding TMTC’s business are described in detail in TMTC’s SEC filings which are available on the SEC’s website at www.sec.gov, including in TMTC’s registration statement on Form S-1 (File No. 333-259879), filed with the SEC and updated by TMTC’s subsequent filings with the SEC. These forward-looking statements speak only as of the date hereof, and TMTC expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.
1. Estimates based on report by Market Research Future
eLong Power Investor Contact:
Shilin Xun
Email: xunshilin@elongpower.com
TMTC Contact
Dajiang Guo
Email: dguo@tmtacquisitioncorp.com
347-627-0058
FAQ
What is the value of the recent purchase order received by eLong Power?
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