(Yicai) June 8 -- Contemporary Amperex Technology, the world’s largest battery maker, has placed a large order for lithium battery electrolytes with Capchem Technology, which will help the Chinese supplier enhance its position in the lithium battery industry chain.

CATL will buy 50,000 tons of lithium battery electrolytes this year, 100,000 tons next year, and 150,000 tons in 2028 from Capchem, the Shenzhen-based supplier announced late yesterday, adding that the order will help establish a long-term and stable partnership between the two firms.

Capchem did not reveal the value of the deal, but based on lithium battery electrolytes’ market price of about CNY27,000 (USD3,980) per ton, the order is expected to bring the company around CNY8.1 billion (USD1.2 billion) in sales income.

Capchem is one of China’s leading electrolyte suppliers. Its battery chemicals output totaled 529,300 tons last year, with sales of 538,100 tons, according to the company’s 2025 earnings report. This business generated revenue of CNY6.7 billion in 2025, accounting for 69 percent of the total annual revenue.

Capchem’s shares [SHE: 300037] closed down 3.6 percent at CNY73.26 (USD10.79) today, with the Shenzhen Component Index plunging 3.2 percent. Driven by strong product demand, Capchem’s stock has surged about 41 percent year-to-date, and it is now trading close to its five-year high.

CATL’s order with Capchem is one of many recent long-term supply agreements that Chinese battery makers are signing to secure electrolytes. For instance, Tinci Materials Technology announced on June 1 that it had agreed with energy storage and power battery company Cornex New Energy to nearly double the total procurement volume of lithium battery electrolytes and component chemicals to over one million tons by 2030.

Editor: Futura Costaglione