Cabot Corporation Signs Multi-Year Supply Agreement with PowerCo SE, a Battery Manufacturing Subsidiary of Volkswagen Group

Rhea-AI Summary

Cabot Corporation (NYSE: CBT) announced a multi-year supply agreement with PowerCo SE, a Volkswagen Group battery manufacturing subsidiary, to supply advanced conductive carbons and conductive dispersions for lithium-ion EV battery electrodes.

Cabot said its conductive formulations aim to improve battery conductivity, energy density, charging speed, and lifespan. The company said the agreement supports its strategic growth in battery materials, reinforces its European EV-market position, and demonstrates its ability to scale production to meet rising global demand.

News Market Reaction

-0.14%

1 alert

-0.14% News Effect

On the day this news was published, CBT declined 0.14%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarterly dividend: $0.45 per share FY25 diluted EPS: $6.02 FY25 adjusted EPS: $7.25 +5 more

8 metrics

Quarterly dividend $0.45 per share Declared Nov 13, 2025 on common stock

FY25 diluted EPS $6.02 Fiscal 2025 reported results

FY25 adjusted EPS $7.25 Fiscal 2025 adjusted, up 3% year-over-year

Operating cash flow $665 million Fiscal 2025 operating cash flow

Capital spending $274 million Fiscal 2025 capital expenditures

Dividends paid $96 million Fiscal 2025 dividends to shareholders

Share repurchases $168 million Fiscal 2025 buybacks

FY26 EPS guidance $6.00–$7.00 Fiscal 2026 adjusted EPS guidance range

Market Reality Check

Price: $75.75 Vol: Volume 381,953 vs. 20-day...

normal vol

$75.75 Last Close

Volume Volume 381,953 vs. 20-day average 531,295 (relative volume 0.72x) indicates subdued activity pre-announcement. normal

Technical Price $70.18 is trading below the 200-day MA $73.93, after a 24.45% pullback from the $92.89 52-week high.

Peers on Argus

Sector peers were mixed pre-news: FUL up 3.84%, SSL up 1.05% in sector snapshot ...

1 Down

Sector peers were mixed pre-news: FUL up 3.84%, SSL up 1.05% in sector snapshot but flagged in momentum scanner down 5.17%, while HWKN, SXT, and BCPC showed smaller moves. This points to company-specific rather than broad sector momentum for CBT.

Historical Context

5 past events · Latest: Nov 21 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 21	Leadership change	Neutral	+5.1%	Reinforcement Materials segment leadership transition to new president.
Nov 18	Product recognition	Positive	+1.4%	LITX 95F conductive carbon named a Top 10 Exhibit at CIIE.
Nov 13	Dividend declaration	Positive	-1.0%	Board declared quarterly cash dividend of <b>$0.45</b> per share.
Nov 03	IR leadership move	Neutral	-2.3%	Appointment of new VP of Investor Relations and Corporate Planning.
Nov 03	Earnings results	Positive	-2.3%	Fiscal 2025 EPS growth and FY26 adjusted EPS guidance of <b>$6.00–$7.00</b>.

Pattern Detected

Recent history shows mixed reactions: product recognition news drew a modest gain, while an earnings release with generally solid full-year metrics and a dividend declaration saw negative or muted moves, suggesting investors may sometimes fade positive headlines.

Recent Company History

Over the last few months, Cabot reported solid fiscal 2025 results with diluted EPS $6.02, adjusted EPS $7.25, and strong operating cash flow of $665M, while returning capital via dividends and buybacks. Governance and leadership updates included a new president for Reinforcement Materials and a VP of Investor Relations and Corporate Planning. Product innovation was highlighted by LITX® 95F being named a “Top 10 Exhibit” at CIIE. Today’s multi-year EV battery supply agreement fits the same theme of expanding advanced materials in energy storage.

Market Pulse Summary

This announcement highlights a multi-year supply agreement with PowerCo SE that expands Cabot’s role...

Analysis

This announcement highlights a multi-year supply agreement with PowerCo SE that expands Cabot’s role in conductive carbons and dispersions for lithium-ion EV batteries. It builds on earlier recognition of its LITX® 95F product and follows solid FY25 EPS and cash flow that supported dividends and buybacks. Investors may watch how this partnership contributes to battery-materials revenue over time and how it complements existing energy storage and specialty chemicals initiatives.

Key Terms

original equipment manufacturer, electric vehicle, lithium-ion battery, energy storage systems

4 terms

original equipment manufacturer technical

"PowerCo SE, a leading European original equipment manufacturer (OEM) in the electric vehicle"

An original equipment manufacturer (OEM) is a company that designs and builds parts or complete products that other firms sell under their own brand name, like a bakery making cakes that coffee shops rebrand and sell. Investors care because OEMs often win steady, long-term contracts, predictable production volumes and thin but scalable profit margins, so changes in their order book or supply chain can signal future revenue and risk for both the OEM and the brands that rely on it.

electric vehicle technical

"original equipment manufacturer (OEM) in the electric vehicle (EV) battery sector."

An electric vehicle (EV) is a car, truck, or other road vehicle powered primarily by rechargeable batteries and electric motors instead of a conventional gasoline or diesel engine. For investors, EVs signal shifts in demand, supply chains, and regulation—think of them as the smartphone moment for transportation: companies that master battery tech, charging networks, and cost control can gain market share, while those slow to adapt may face shrinking sales and margins.

lithium-ion battery technical

"conductive carbons and dispersions for lithium-ion battery applications"

A lithium-ion battery is a rechargeable energy cell that stores and releases power by moving lithium ions between two electrodes, like a pump moving water back and forth to hold and deliver energy. Investors care because these batteries power electric vehicles, portable electronics and grid storage, so factors such as cost, energy density, lifespan, and raw-material supply directly affect manufacturing costs, product competitiveness and long-term company profits.

energy storage systems technical

"optimize battery performance across a range of applications, including electric vehicles, energy storage systems, and"

Energy storage systems are technologies that capture electricity when it’s plentiful or cheap and release it when demand or prices are higher, like a large rechargeable battery for a neighborhood or power grid. They matter to investors because they enable more reliable power, smooth out the ups and downs of renewable energy, and can create new revenue streams or cost savings by shifting when power is sold or used.

AI-generated analysis. Not financial advice.

Agreement includes supply of Cabot’s conductive carbons and dispersions for lithium-ion battery applications

BOSTON, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE: CBT), a global leader in specialty chemicals and performance materials, today announced it has signed a multi-year supply agreement with PowerCo SE, a leading European original equipment manufacturer (OEM) in the electric vehicle (EV) battery sector. This agreement marks a significant milestone in Cabot’s strategic growth in the battery materials market.

Under the agreement, Cabot will supply its advanced conductive carbons and conductive dispersions for use in EV batteries electrodes. Cabot’s conductive formulations are high-performance materials designed to enhance battery conductivity and efficiency. They play a critical role in improving the performance of lithium-ion batteries by enabling higher energy density, faster charging capabilities, and extended battery life, which are critical performance attributes for next-generation EVs.

“We are proud to collaborate with one of Europe’s foremost EV battery manufacturers to deliver innovative solutions that meet the evolving demands of the electric vehicle market,” said Jeff Zhu, executive vice president and president, Carbon & Silica Technologies, Battery Materials and Asia Pacific Region. “This agreement positions us as one of the leading conductive materials suppliers in the European EV battery market. Furthermore, it reflects the strength of our technology and our ability to scale production to meet growing global demand.”

The supply agreement is expected to contribute meaningfully to Cabot’s growth in the battery materials sector and reinforces its position as a trusted partner in the global EV value chain. The partnership reinforces Cabot’s commitment to delivering high-performance, scalable solutions that support the global transition to clean energy.

Cabot’s advanced conductive products subject of the agreement are part of its broader portfolio of conductive additives and dispersions engineered to optimize battery performance across a range of applications, including electric vehicles, energy storage systems, and consumer electronics.

ABOUT CABOT CORPORATION
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed metal oxides and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.

Contact:                 
Emily Moran
Corporate Communications
emily.moran@cabotcorp.com
(617) 460-4517

Robert Rist
Investor Relations
robert.rist@cabotcorp.com
(617) 342-6374

FAQ

What did Cabot (CBT) announce on January 7, 2026 regarding PowerCo SE?

Cabot announced a multi-year supply agreement to provide conductive carbons and dispersions for PowerCo SE's lithium-ion EV battery electrodes.

How will the Cabot (CBT) supply agreement with PowerCo SE affect Cabot's position in Europe?

Cabot said the agreement positions it as a leading conductive materials supplier in the European EV battery market and supports its strategic growth in battery materials.

What products will Cabot (CBT) supply to PowerCo SE under the agreement?

Cabot will supply its advanced conductive carbons and conductive dispersions designed for lithium-ion EV battery electrodes.

Does the Cabot (CBT) announcement include financial terms or volumes for the PowerCo SE deal?

No; the announcement does not disclose contract value, volumes, or specific timelines beyond describing the deal as multi-year.

What battery performance benefits does Cabot (CBT) claim from its conductive products?

Cabot describes benefits including higher energy density, faster charging, and extended battery life for lithium-ion EV batteries.

Where can investors expect to see the impact of Cabot's (CBT) PowerCo SE agreement?

The company said the agreement is expected to contribute meaningfully to growth in its battery materials sector and strengthen its role in the EV value chain.