LiCap Technology's board approved a NT$1 billion investment to lease facilities and buy equipment, supporting a 20-year Tesla contract to supply at least 100,000 tonnes of LFP precursor material annually.
What made Tesla choose LiCap Technology for a 20-year supply deal?
LiCap Technology (立凱電) is the only Taiwan-based manufacturer outside China with mass-production capability for lithium iron phosphate (LFP) battery materials, a position built over 20 years in the battery-materials businessCITE:E3CITE:E9. On that basis, the company secured a supply contract with Tesla running a full 20 years, under which LiCap will supply Tesla with at least 100,000 tonnes of LFP precursor material every yearCITE:E4CITE:E10.
Why did LiCap commit NT$1 billion to expansion?
LiCap's board approved a reported major investment case to lease factory space and purchase equipment in response to the new orderCITE:E1CITE:E7. At the same board meeting, LiCap also decided to participate in a capital increase at its subsidiary, Taiwan LiCap EnergyCITE:E1CITE:E7. The NT$1 billion outlay covers both facility leasing and equipment purchases needed to fulfill the Tesla supply commitmentCITE:E1CITE:E7.
Where and when will the new plant come online?
The new plant is being sited in Tainan or Taichung, with LiCap targeting an October launch this year and revenue contribution starting in July 2027CITE:E2CITE:E8. Between the two candidate cities, Tainan is described as the more likely choice, and if selected, LiCap's existing production lines would move there entirely from TaoyuanCITE:E5CITE:E11.
What are the terms of the capital increase at Taiwan LiCap Energy?
LiCap will join a NT$600 million capital increase at its subsidiary Taiwan LiCap Energy, with shares priced at NT$10 each and a record date of August 16CITE:E6CITE:E12.
Key figures at a glance
| Item | Figure | Source |
|---|
| Capex for facility lease + equipment | NT$1 billion | CITE:E1 |
| Tesla supply contract length | 20 years | CITE:E4 |
| Annual LFP precursor supply to Tesla | ≥100,000 tonnes | CITE:E4 |
| New plant launch | October (this year) | CITE:E2 |
| Revenue contribution begins | July 2027 | CITE:E8 |
| Taiwan LiCap Energy capital increase | NT$600 million | CITE:E6 |
| Capital increase issue price | NT$10 per share | CITE:E6 |
| Capital increase record date | August 16 | CITE:E6 |
What this means
The same board meeting that approved the NT$1 billion facility and equipment spend also approved LiCap's participation in the NT$600 million capital increase at Taiwan LiCap Energy, priced at NT$10 per share with an August 16 record date — pairing direct capex with a subsidiary-level equity raise to fund the same Tesla-driven expansionCITE:E1CITE:E6. The timeline shows a gap between action and payoff: the new plant is due to open in October this year, but revenue contribution is not expected until July 2027, a lag consistent across both cited reportsCITE:E2CITE:E8. If Tainan is confirmed as the site, the move would also consolidate LiCap's production by shifting existing lines out of Taoyuan entirelyCITE:E5CITE:E11.