Hongli Group Inc. (NASDAQ:HLP) (the "Company" or "Hongli Group"), a cold roll formed steel profile manufacturer, today announced its strategic decision to explore opportunities in the clean energy and energy storage sectors. The Company plans to leverage its existing manufacturing expertise, product customization capabilities and industry know-how, with an initial focus on developing products and components that may be used in solid-state battery and other energy storage applications. The Company believes that its experience in designing and manufacturing customized steel profile products may provide a foundation for developing products and solutions for customers in clean energy and energy storage applications.

The Company's strategic plan is aligned with the continued global shift toward sustainable power and energy storage solutions. According to the International Energy Agency (IEA), global renewable power capacity is projected to increase by almost 4,600 GW between 2025 and 2030. This growth has been supported by a shift in economics. According to Our World in Data, solar photovoltaic costs have fallen by 90% in the last decade, and onshore wind by 70%. In addition, IRENA reported that 91% of new renewable power projects commissioned in 2024 were more cost-effective than any new fossil fuel alternatives. According to the IEA, batteries are expected to play a critical role in secure clean energy transitions, and battery storage is the fastest-growing clean energy technology in the power sector. The IEA has also reported that the aggregate market value of selected clean energy technologies has grown at an average rate of approximately 20% per year since 2015, reaching nearly $1.2 trillion.