(Yicai) June 26 -- Contemporary Amperex Technology, the world’s largest battery maker, has signed a second large supply deal for lithium battery materials with Yongtai Technology in under one month.

Yongtai will provide CATL with 20,000 tons of vinylene carbonate next year, 30,000 tons in 2028, and 40,000 tons in 2029, the Zhejiang province-based supplier announced yesterday, without revealing any further details. Based on a market price of about CNY130,000 (USD19,115) per ton for VC, the deal would be worth around CNY11.7 billion (USD1.7 billion).

VC is a critical electrolyte additive for lithium batteries. It delivers enhanced protection to battery anodes and improves battery cycle and safety performance. The weight proportion of VC in lithium battery electrolytes ranges from 1 percent to 6 percent, with the specific proportion in power battery electrolytes being 2 percent to 4 percent.

On June 8, Yongtai announced it would provide CATL with a total of 470,000 tons of lithium battery electrolytes from this year to 2028, in a deal that is likely valued at around CNY12.7 billion, based on market prices then.

Yongtai is among China’s leading battery electrolyte suppliers. According to its 2025 financial statement, it produced 107,300 tons of battery chemicals last year, with sales volume of 107,200 tons and related revenue of CNY2.1 billion (USD311.8 million), accounting for 41 percent of its total revenue.

Yongtai owns a VC production line with an annual output of 10,000 tons and another one with an additional 20,000 tons of capacity under construction. Earlier this week, the company unveiled plans to invest CNY800 million (USD117.6 million) to build a new VC factory with a production capacity of 50,000 tons a year in Inner Mongolia Autonomous Region.

The new plant is scheduled to complete construction and begin operations by the end of next year, aiming to satisfy growing downstream demand and strengthen the company’s industrial chain coordination capacity.

CATL is a long-standing client of Yongtai. They first signed a five-year supply deal for three types of electrolyte additives in 2021, with a monthly procurement volume of VC no less than 200 tons. In early 2024, they inked another agreement, under which CATL committed to buy at least 100,000 tons of lithium battery electrolyte a year in 2024 and 2025.

Yongtai’s shares [SHE: 002326] closed 3.9 percent down at CNY24.48 (USD3.59) in Shenzhen today. CATL’s stock [SHE: 300750] fell 5.2 percent to CNY381 (USD56.02). The Shenzhen Component Index, the benchmark index for the Shenzhen market, closed down 3.4 percent today.

Editors: Tang Shihua, Futura Costaglione