Zhenli raises 100M yuan Series A to scale ADI metal materials
What's the deal? Suzhou Zhenli New Materials Technology has raised over 100 million yuan (roughly $14.8 million) in a Series A round. China Merchants Zhiyuan Capital, YuchaiDealroom has a profile for this one. Try Dealroom →, and Haifu Industrial FundDealroom has a profile for this one. Try Dealroom → led, with CICC Capital, Jiangsu Coastal Group, and Huanghai Financial Holdings joining.
What does it do? Zhenli produces austempered ductile iron (ADI), a metal used in gears, chassis, and heavy-duty transmission parts. It says it broke through key production barriers in 2024, enabling volume output of high-strength, high-ductility grades.
Why it matters: ADI can cut running noise by 5 decibels versus alloy steel and is about 10% lighter, aiding vehicle range and load capacity. It also lowers component costs, which the company says makes it attractive in price-sensitive uses.
What's the money for? The funds will expand ADI production lines, fund core process research, and push commercialisation across passenger vehicles, commercial vehicles, and construction machinery. Zhenli already works with several automakers on gears, transmission parts, and chassis components.
Why now? Founder Gao Shuhai notes ADI penetration in ductile iron tops 15% in the US but sits below 2% in China — the world's largest ductile iron market, with annual demand in the tens of millions of tonnes.
By the numbers: At over 100 million yuan, the round lands in roughly the 44th percentile by size — a mid-sized raise rather than an outlier.
The signal: As Chinese automakers and machinery builders chase lighter, cheaper, quieter components, domestic ADI producers see room to close the gap with the US. Zhenli is betting local penetration follows the same path — and that scaling now secures early market share.
Image credit: Generated with Gemini
