(Yicai Global) July 26 -- Guangdong Tonze Electric has announced another long-term order for electrolyte material after having signed an agreement with electric vehicle and power battery giant BYD last week.

Tonze Electric subsidiary Jiangsu Xintai Material Technology will supply lithium hexafluorophosphate, a kind of electrolyte material, to Zhangjiagang Guotai Huarong New Chemical Materials and its unit Ningde Guotai Huarong New Material from 2021 to 2023, with a locked order of 12,000 tons and an additional order of 2,400 tons, the Guangdong-based company said yesterday.

The firm did not mention any financial details, but said that the buyers will pay a certain amount in advance. It also did not mention the ultimate buyer of the electrolyte, but it is expected to be a lithium battery electrolyte manufacturer. Guotai Huarong opened a new plant last year near the headquarters of lithium battery giant Contemporary Amperex Technology.

Tonze Electric also announced last week that it will supply as much as 11,300 tons of lithium hexafluorophosphate to BYD over the next two and a half years.

Xintai Material is one of the main suppliers of lithium hexafluorophosphate in China, with annual production of 8,160 tons. The company announced a capacity expansion plan in April to build a new plant with an annual output of 10,000 tons, but did not disclose when the new capacity was expected to come online.

Lithium hexafluorophosphate is one of the main components of lithium battery electrolytes and its price has risen from about CNY70,000 (USD10,800) a ton last August to a high of CNY425,000 early this month, according to industry data. Prices are also expected to continue rising as supplies will remain tight until at least the first half of next year.

Shares in Tonze Electric [SHE:002759] closed 1.1 percent lower today at CNY45.01 (USD6.94). The Shenzhen market fell 2.7 percent. Tonze Electric has gained just over 320 percent since the end of September, and reached a record high of CNY54.80 on July 14.

Editor: Tom Litting