April 3, 2026: Leoch International has shelved proposals to launch a US spin-off company, Batteries International can exclusively reveal.

Chairman Dong Li said in filing with the Stock Exchange of Hong Kong on April 1 the company had “decided at this time not to proceed with the project”.

The announcement came just two days after Leoch announced the latest in a series of delays in the schedule to formally establish the proposed US spin-off — Leoch Energy — citing time required to complete the procedures of approvals from US authorities.

In the April 1 filing, Dong Li said the decision not to proceed with the project and its proposed listing in the US followed consideration of several factors, including prevailing market and regulatory conditions. 

“The SpinCo will make adjustments to its financing strategies and pursue new opportunities,” the chairman said.

Leoch thanked prospective investors for the proposed spin-off and for the support and positive feedback from shareholders.

Batteries International reported last December that Leoch then expected the US unit would have a new plant in place in 2027 which, by the end of 2028, would support a ramping up of capacity to meet the “vast majority” of demand.

Leoch issued a profit warning last month, saying the group faced an expected loss of around Rmb300 million ($44 million) for 2025 — driven in part by increased export costs to the US.