Hongli Group Inc. Entered into Strategic Non-Binding MOU with Sidus Energy Storage, Inc. to Explore Potential Advanced Battery Manufacturing Collaboration

Proposed Partnership Supports the Company's ongoing Strategic Shift Toward Clean Energy and Energy Storage Solutions

WEIFANG, China, June 15, 2026 /PRNewswire/ -- Hongli Group Inc. (Nasdaq: HLP) (the "Company" or "Hongli Group"), a cold roll formed steel profile manufacturer, today announced that it has entered into a non-binding Memorandum of Understanding ("MOU") with Sidus Energy Storage, Inc. ("Sidus"), a California-based battery technology company, to explore a potential strategic manufacturing collaboration relating to advanced battery and energy storage products targeting the high-growth North American and European energy storage markets.

This proposed collaboration represents a further step in Hongli Group's clean energy evaluation. It follows the Company's recent initiatives over the past two months, including the planned formation of its New Energy Solid-State Battery Division and the engagement of Dr. Phillip A. Medina IV as Independent Technical Advisor to capture high-margin energy storage opportunities.

This strategic MOU is designed to leverage Hongli Group's deeply entrenched industrial manufacturing capabilities alongside Sidus's battery technology. Sidus has licensed foundational battery technology from IBM and has successfully developed advanced battery products characterized by high energy density. The parties intend to jointly evaluate product development, automated production feasibility, capacity planning, and supply chain localization.

As contemplated by the MOU, Hongli Group is expected to contribute its extensive mass-production experience, scalable operational infrastructure, and business expansion expertise to support the proposed collaboration, including with respect to the potential development, construction and operation of manufacturing facilities. The Company's precision profile design is suited to optimize the structural integrity and cost-efficiency of battery enclosures, packs, and racking infrastructure. Sidus is expected to contribute to its IBM-licensed battery technology, product know-how, technical specifications, and established commercial pipelines to accelerate time-to-market.

"Entering this MOU with Sidus represents a further step in Hongli Group's long-term strategy to diversify into high-growth, clean energy verticals," said Mr. Jie Liu, Chief Executive Officer of Hongli Group. "This proposed collaboration would allow us to immediately cross-utilize our precision manufacturing scale and deep expertise in advanced material processing with Sidus's battery technology. By positioning our structural engineering strengths at the core of the energy storage supply chain, we believe we are laying the foundation for a sustainable, high-margin growth engine that creates long-term value for our global shareholders."

There can be no assurance that the parties will enter into definitive agreements or that the proposed collaboration will result in product development, facility development, pilot production, commercial production, revenue generation or any other business outcome. The Company will make further disclosures in accordance with applicable securities laws and regulations as material development occurs.

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: [email protected]
Mobile: +86 0536-2180886

SOURCE Hongli Group Inc.