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

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

SOURCE HONGLI GROUP INC.