(Yicai) July 3 -- Fulin Precision, a raw materials supplier to Chinese battery titan Contemporary Amperex Technology, is teaming up with SD Lomon to meet the increasing demand for fast-charging lithium batteries by jointly building factories that produce the materials for them.

Fulin and SD Lomon, a phosphate and phosphorus chemicals maker, will set up two joint venture plants in China's Sichuan province, they said yesterday. One will turn out high-density lithium iron phosphate and the other will produce its two raw materials: lithium dihydrogen phosphate and ferrous oxalate. Annual output capacity for each of the three products is set at 100,000 tons.

Fulin or its subsidiary will own 51 percent of the lithium iron phosphate JV, and SD Lomon the rest. The shareholding ratio is reversed for the other JV, the partners said, without revealing the cost of the projects or their construction timelines.

High-density lithium iron phosphate, which enables batteries with higher energy density and is better suited for manufacturing fast-charging batteries, is in short supply at the moment.

CATL is a major client of Fulin’s lithium battery materials unit, Jiangxi Shenghua New Material. Last month, the pair signed a deal under which Shenghua New Material will prioritize the production of lithium iron phosphate cathode materials that meet CATL's requirements from this year to 2029. In return, CATL will support Shenghua New Material's capacity expansion with advanced payments.

Shenghua New Material sold 126,200 tons of high-density lithium iron phosphate last year worth CNY4.8 billion (USD670 million), which accounted for about 57 percent of Fulin's annual revenue, according to the parent company's 2025 trading report.   

Fulin's shares [SHE: 300432] closed down 0.2 percent at CNY13.01 (USD1.82) each today, while SD Lomon [SHE: 002312] rose 1.2 percent to end at CNY11.43. The wider Shenzhen market also climbed 1.2 percent.

Editor: Futura Costaglione