Sunrise New Energy's $30M Deal: A Power Play in Batteries and Drones

DOVER, USA – December 02, 2025 – In a move that signals a significant strategic pivot, synthetic graphite anode producer Sunrise New Energy (NASDAQ: EPOW) has secured a USD 30 million annual supply contract that thrusts it directly into two of the fastest-growing technology sectors: grid-scale energy storage and unmanned aerial vehicles (UAVs). The agreement with Guizhou Jiaying Technology Co., Ltd. is more than just a major sale; it is a calculated maneuver to diversify from traditional applications and capture value in higher-margin, structurally growing markets.

Under the terms of the deal, Sunrise will supply 10,000 tons of its synthetic graphite anode materials over one year. For a company with a market capitalization hovering under $40 million, this single transaction represents a monumental financial injection and a powerful validation of its strategic direction. The deal goes beyond the numbers, positioning Sunrise as a key supplier to an emerging force in China’s battery landscape and providing a crucial foothold in the future of energy and autonomous flight.

A Strategic Pivot into Exploding Markets

The partnership with Guizhou Jiaying Technology is a masterstroke of strategic alignment. Established in 2019 with backing from the Guiyang municipal government, Jiaying has rapidly become a notable manufacturer of lithium-ion batteries. Its focus is not on the crowded electric vehicle space but on specialized, high-value applications, including grid-scale storage, commercial and residential power systems, and high-performance batteries for UAVs. With 63 patents and a core team boasting decades of experience, Jiaying represents the new wave of specialized Chinese tech firms driving innovation.

Sunrise’s move to supply Jiaying is timed to perfection, tapping into markets experiencing exponential growth. Globally, the grid-scale battery storage market is projected to skyrocket from approximately $10.7 billion in 2024 to nearly $44 billion by 2030, a compound annual growth rate (CAGR) of over 27%. China, already accounting for over 40% of the world's installed energy storage, is leading this charge, with forecasts predicting its capacity will more than double by 2030.

The UAV battery market tells a similar story. Driven by expanding use in defense, logistics, and agriculture, the market is expected to grow from around $8 billion in 2024 to over $48 billion by 2033, reflecting a CAGR of nearly 22%. By securing a key role in Jiaying’s supply chain, Sunrise is effectively hitching its wagon to these two powerful growth engines.

“This agreement is expected to deliver stable, meaningful revenue over the next year, drive higher utilization of our Guizhou production facility, and further showcase Sunrise’s ability to support leading customers,” stated Haiping Hu, CEO of Sunrise, in the official announcement. His comments underscore the dual benefit: securing revenue while proving the company's capability in demanding, high-performance sectors.

Reshaping the Financial Outlook

For investors tracking Sunrise New Energy, this contract is a potential game-changer. The $30 million in secured revenue is staggering when contextualized against the company's recent performance. It represents approximately 46% of its entire $65 million revenue for the 2024 fiscal year. This provides a level of revenue visibility and stability that has been absent for the small-cap contender.

The deal arrives at a critical juncture. After posting a net loss of over $12 million in 2024, Sunrise recently announced a return to profitability in the summer of 2025, a turnaround it attributed to cost controls and bringing more of its energy-intensive graphitization process in-house. The Jiaying contract is poised to significantly amplify this nascent recovery. By increasing production volume at its 50,000-ton Guizhou facility, the company anticipates achieving greater economies of scale and improved operating leverage, which are essential for sustained margin expansion.

This positive operational news is complemented by a recent successful private placement in November 2025 that raised $5.6 million, shoring up the company’s working capital. While analyst coverage remains limited and cautious—citing past losses and stock volatility—this combination of fresh capital, a landmark sales contract, and a return to profitability creates a compelling narrative that could force a market re-evaluation of the company's prospects.

Competing in the Land of Giants

While the Jiaying deal is a significant victory, Sunrise still operates in the shadow of colossal competitors. The global graphite anode market is a near-monopoly for Chinese producers, which command an estimated 97% of the world's output. Industry titans like BTR New Material Group and Shanghai Shanshan Technology dominate the landscape, with production capacities that dwarf Sunrise's operations and deep integration across the entire supply chain.

Furthermore, the industry faces the looming specter of overcapacity, with planned expansions in China threatening to outpace global demand. In this fiercely competitive environment, smaller players like Sunrise must carve out a defensible niche. Its strategy appears to be twofold: technological specialization and cost leadership through sustainable production.

By focusing on the specific performance requirements of energy storage and UAVs, Sunrise can differentiate itself from competitors focused on the high-volume, commoditizing EV market. Moreover, the company is pursuing next-generation technology, having secured patents for silicon-carbon composite materials for solid-state batteries—a key area for future battery development. This forward-looking research, combined with innovations like its patented AI-enabled system for improving safety and efficiency in graphitization furnaces, suggests a focus on technological edge as a long-term survival strategy.

The Green Graphite Proposition

Sunrise’s most compelling differentiator may lie in its production process. The company has consistently highlighted that its Guizhou facility runs on inexpensive, renewable electricity. This is not just a marketing claim. Guizhou province has aggressively invested in green energy, with clean sources now making up over 60% of its total installed power capacity. This provides a credible foundation for Sunrise’s assertion that it is a “low-cost and low-environmental-impact producer.”

This is a critical advantage in an industry under increasing environmental scrutiny. The production of synthetic graphite is notoriously energy-intensive, carrying a significant carbon footprint when powered by fossil fuels. By leveraging Guizhou's abundant hydropower, Sunrise can mitigate this impact, offering a greener alternative that is increasingly demanded by downstream customers and regulators. This regional synergy—a Guizhou-based anode producer using local green power to supply a Guizhou-based battery maker—creates a powerful, localized, and more sustainable supply chain.

Ultimately, the $30 million contract with Guizhou Jiaying is far more than a simple transaction. It is a strategic anchor securing Sunrise New Energy's financial footing while launching it into the core of the global energy transition and autonomous technology revolution. The path ahead is challenging, but with a clear strategy and a major new partner, Sunrise is positioning itself not just to survive, but to disrupt.