Hongli Group Inc. Provides Update on Proposed Strategic Collaboration with Sidus Energy Storage

Rhea-AI Summary

Hongli Group (Nasdaq:HLP) updated investors on its proposed strategic, non-binding collaboration with Sidus Energy Storage, a California battery technology company. The MOU aims to explore advanced battery manufacturing, including product development, automated production feasibility, capacity planning, localized supply chains, and potential facilities for Sidus’s IBM-licensed semi-solid-state and solid-state battery products targeting high-performance mobility, aerospace, drones, robotics, and advanced EV markets.

News Market Reaction – HLP

+6.57%

22 alerts

+6.57% Session close to close

+39.4% Peak in 32 hr 29 min

$58.24M Market Cap

0.2x Rel. Volume

In the Jul 7 session, HLP gained 6.57%, reflecting a notable positive market reaction. Argus tracked a peak move of +39.4% during that session. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +6.6% in the session following this news. A strong upside move would extend a patter...

Analysis

The stock moved +6.6% in the session following this news. A strong upside move would extend a pattern seen after prior positive events, where news on Sidus and solid-state initiatives has triggered gains above 4%.

Historical Context

5 past events · Latest: Jun 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 15	MOU announcement	Positive	+6.2%	Signed non-binding MOU with Sidus for advanced battery manufacturing collaboration.
Jun 03	Strategy update	Positive	-5.3%	Refocused energy storage strategy on solid-state lithium battery technologies.
May 28	Advisor engagement	Positive	+4.7%	Engaged battery expert Dr. Medina as independent technical advisor for energy storage.
May 19	New division plan	Positive	-5.0%	Planned New Energy Solid-State Battery Division focused on advanced materials and storage.
May 13	FY25 earnings	Positive	+23.4%	Reported 39% revenue growth to $19.6M and turnaround to $1.9M net income.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent company-specific news has often produced strong but mixed reactions, with both rallies and selloffs following positive strategic updates.

Key Terms

semi-solid-state, solid-state, unmanned aerial vehicles, system integration

4 terms

semi-solid-state technical

"Sidus is currently focused on the development of semi-solid-state and solid-state battery technologies"

A semi-solid-state system describes a technology that replaces some but not all liquid components with solid or gel-like materials, most often used for batteries where a thickened or partially solid electrolyte sits between electrodes. Like a smoothie that’s thicker than a juice but not completely frozen, it aims to combine the safety and energy-density advantages of solid materials with the manufacturing ease of liquids. Investors watch the term because it signals a potential middle path to better performance, lower safety risk, and different cost or scaling trade-offs compared with fully liquid or fully solid alternatives.

solid-state technical

"semi-solid-state and solid-state battery technologies designed to deliver high energy density"

Solid-state describes devices or components that rely on solid materials to perform their function rather than moving parts or liquids; examples include solid-state drives and solid-state batteries. For investors, it signals potential advantages like greater durability, faster performance, lower maintenance and often improved safety — similar to choosing a sealed, sturdy appliance over one with many fragile mechanical parts — which can affect product competitiveness, manufacturing costs and market demand.

unmanned aerial vehicles technical

"Commercial drones and unmanned aerial vehiclesRobotics and automationAdvanced electric vehicles"

Unmanned aerial vehicles (UAVs) are aircraft that fly without a pilot on board, controlled remotely or by onboard computers—think of them as flying robots or advanced remote‑control planes. They matter to investors because they create new markets and revenue streams across industries such as defense, logistics, agriculture and infrastructure inspection; their value depends on demand, safety and regulatory approval, similar to how driverless cars reshape transport investment risks and opportunities.

system integration technical

"cell design, process engineering, and system integration."

System integration is the process of connecting different software, hardware and business processes so they work together as one smooth operation—like wiring separate appliances in a house to run from a single control panel. For investors it matters because successful integration can lower costs, improve delivery speed and enable new services, while poor integration can cause delays, extra expenses and reduced revenue that hurt profit and valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Proposed non-binding collaboration aims to leverage Sidus's IBM-licensed battery technology to target high-growth aerospace, robotics, and advanced electric vehicle markets

WEIFANG, China, July 7, 2026 /PRNewswire/ -- Hongli Group Inc. (Nasdaq: HLP) ("Hongli Group" or the "Company"), a cold roll formed steel profile manufacturer, today provided an update regarding the advanced battery technology and research and development of Sidus Energy Storage, Inc. ("Sidus"), a California-based battery technology company. As previously announced, Hongli Group recently entered into a strategic non-binding Memorandum of Understanding ("MOU") with Sidus to explore a potential collaboration relating to battery manufacturing. The proposed collaboration is intended to evaluate opportunities relating to advanced battery manufacturing, including product development, automated production feasibility, capacity planning, supply chain localization, and the potential development of manufacturing facilities for Sidus battery products.

According to Sidus, its battery technology is licensed from IBM research. Building upon that technology base, Sidus has advanced its own research and development in battery materials, cell design, process engineering, and system integration. Sidus is currently focused on the development of semi-solid-state and solid-state battery technologies designed to deliver high energy density, improved safety, and enhanced performance for demanding applications.

Sidus has advised the Company that its advanced semi-solid-state and solid-state battery systems are being developed to address applications where weight, operating range, power performance, and system efficiency are critical. Potential target applications may include:

• High-performance mobility
• Aerospace applications
• Commercial drones and unmanned aerial vehicles
• Robotics and automation
• Advanced electric vehicles and fleet electrification

"Our proposed collaboration with Sidus represents an important step in Hongli Group's long-term value creation strategy," said Mr. Jie Liu, Chairman and Chief Executive Officer of Hongli Group. "The energy storage landscape is facing an increasing demand shock driven by AI, robotics, and next-gen mobility. By combining our deeply established manufacturing execution, structural engineering capabilities, and supply chain infrastructure with Sidus's IBM-licensed solid-state battery technology, we are position-building to help scale a safer, more powerful, and scalable battery solution for the global market, and expect to unlock value for our shareholders."

About Hongli Group Inc.

Hongli Group Inc. is a Cayman Islands holding company, and through a series of contractual arrangements, consolidates the financial results of Shandong Hongli Special Section Tube Co., Ltd. and its subsidiaries (collectively, "Hongli Operating Group"). Hongli Operating Group is a cold roll formed steel profile manufacturer with operating subsidiaries in China. The Hongli Operating Group designs, customizes and manufactures cold roll formed steel profiles for machineries and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation. The Hongli Operating Group, with over 25 years of operating history, has developed customers in more than 30 major cities in China as well as a global network including South Korea, Japan, and U.S. Hongli Operating Group currently has 11 cold roll forming production lines and produces a variety of distinct profile products in a broad range of materials, sizes and shapes.

About Sidus Energy Storage, Inc.

Sidus Energy Storage, Inc. is a technology company commercializing the cobalt-free battery technology licensed from IBM. Sidus has stated that the technology uses novel proprietary materials that eliminate the use of any heavy metals. It is not only more environmentally friendly and cost effective, but also has performance advantages in charging time, extended temperature operation, high energy and power density, and cycle life. Sidus' vision is a greener world powered by Sidus batteries. Sidus is expanding globally and is building a diverse and collaborative team of talents to create a better greener world.

Forward-Looking Statements

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "would," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," "continue" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, import and export restrictions, fluctuations in general economic and business conditions, the Company's ability to comply with Nasdaq continued listing standards and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:

Hongli Group Inc.
Mr. Jie Liu
Email: zjf@hongli-profile.com
Mobile: +86 0536-2180886

View original content:https://www.prnewswire.com/news-releases/hongli-group-inc-provides-update-on-proposed-strategic-collaboration-with-sidus-energy-storage-302818841.html

SOURCE HONGLI GROUP INC.

FAQ

What strategic collaboration did Hongli Group (HLP) announce with Sidus Energy Storage on July 7, 2026?

Hongli Group announced a proposed, non-binding MOU with Sidus Energy Storage to explore advanced battery manufacturing collaboration. According to Hongli Group, the focus includes product development, automated production feasibility, capacity planning, supply chain localization, and potential manufacturing facilities for Sidus battery products.

How will Sidus’s IBM-licensed battery technology be used in the Hongli Group (HLP) collaboration?

Sidus’s IBM-licensed battery technology may form the basis of joint advanced battery manufacturing efforts. According to Hongli Group, Sidus has built on IBM research to develop semi-solid-state and solid-state batteries focused on high energy density, safety, and performance for demanding applications.

Which markets could Hongli Group (HLP) and Sidus target with their proposed battery collaboration?

The collaboration is aimed at high-growth, performance-driven markets rather than mass consumer uses. According to Hongli Group, potential target applications include high-performance mobility, aerospace, commercial drones, robotics and automation, and advanced electric vehicles and fleet electrification.

Is the Hongli Group (HLP) agreement with Sidus Energy Storage binding for investors?

The current understanding is a non-binding Memorandum of Understanding, not a definitive contract. According to Hongli Group, the MOU’s purpose is to evaluate opportunities around advanced battery manufacturing and does not yet create binding commercial obligations or finalized deal terms.

What does the proposed Sidus battery collaboration mean for Hongli Group (HLP) shareholders?

It signals exploration of a move into advanced energy storage alongside Sidus’s technology. According to Hongli Group, combining its manufacturing and structural engineering capabilities with Sidus’s IBM-licensed solid-state battery technology is expected to support long-term value creation if opportunities progress.

What type of battery technologies are being developed under the Hongli Group (HLP) and Sidus initiative?

The focus is on semi-solid-state and solid-state battery systems rather than conventional lithium-ion cells. According to Hongli Group, Sidus is developing these technologies to offer high energy density, improved safety, and enhanced performance where weight, range, power, and efficiency are critical.