CATL $3750 (+0,75 %) has received a major order for lithium iron phosphate (LFP) material and invested in another lithium supplier as the world's largest traction battery manufacturer secures future supplies of key raw materials.
Shanghai-listed Ningbo Ronbay New Energy Technology (SHA: 688005) has signed a contract with CATL for the supply of LFP cathode material to supply the battery maker from the first quarter of 2026 to 2031, according to a stock exchange announcement on Tuesday.
Ronbay expects to supply CATL with 3.05 million tons of LFP cathode material during the contract period, with total sales exceeding RMB 120 billion (USD 17.2 billion).
This is the largest order in the lithium and battery industry to date and has attracted a lot of attention.
The Shanghai Stock Exchange then asked Ronbay to supplement the details of the specific annual production capacity commitments under the agreement and the company's fulfillment capacity, according to another announcement.
Ronbay was also asked to explain the potential impact of factors such as risks arising from fluctuations in commodity prices, uncertainties in procurement demand and the unpredictability of production capacity reserves.
Ronbay's main products are battery cathode materials, especially ternary materials. The company officially entered the LFP sector in 2025.
In addition to the large order placed with Ronbay, CATL plans to invest in another Chinese LFP material supplier, Fulin Precision Machining (SHE:300432).
Shenzhen-listed Fulin announced in a stock exchange release on Tuesday that it intends to attract CATL as a strategic investor through a private placement to raise a total of RMB 3.18 billion.
CATL previously held no shares in Fulin, but will acquire over 5% of the shares after the issue is completed.
Fulin plans to use the funds raised for projects including an annual production capacity of 500,000 tons for high-quality LFP materials for energy storage and key components for electric drive systems of electric vehicles.
CATL's two measures come against the backdrop of a significant increase in lithium prices in China.
Since December, spot prices for battery-grade lithium carbonate in China have risen by 73%, from RMB 95,000 per ton to RMB 164,000 per ton.