(Yicai) Feb. 28 -- Battery giant Contemporary Amperex Technology and excavator and forklift maker Lonking Holdings have teamed up on the electrification of construction machinery.

CATL will become Lonking’s preferred supplier and the pair will work together on researching, developing, and promoting compatible products, according to the tie-up agreement the Ningde-based battery supplier announced on WeChat yesterday.

This is the second time so far this year that CATL has formed a partnership with a construction machinery maker. On Jan. 20, the firm penned an agreement with Jinan-based Lingong Heavy Machinery to develop and promote electric mining trucks.

The partnerships augur new product launches. At the signing ceremony, Lonking unveiled a new electric wheel loader, equipped with a next-generation CATL battery specifically designed for construction machinery.

Founded in 1993, Lonking is the largest manufacturer of construction machinery in Fujian province and listed in Hong Kong in 2005. In the first half of last year, the company more than doubled its net profit to CNY307.4 million (USD42.7 million) from a year ago, though revenue fell 5 percent to CNY5.7 billion (USD791.8 million).

Last year, CATL's battery shipments reached 259.7 gigawatt-hours, a 41 percent increase. The firm has headed global shipments for seven straight years with a market share of almost 37 percent, according to data from SNE Research.

Editor: Emmi Laine