(Yicai) June 3 -- Lopal Technology’s shares surged by their exchange-imposed daily trading limit after the Chinese battery materials supplier received a five-year order worth more than CNY5 billion (USD694 million) from leading Chinese battery giant Eve Energy.

Lopal [SHA: 603906] ended 10 percent up at CNY12.66 (USD1.76) a share in Shanghai today, bringing this year’s gain to 22 percent.

Lopal will supply Eve Energy’s Malaysian plant with a total of 152,000 tons of lithium iron phosphate cathode materials from next year to 2030, the Nanjing-based company announced yesterday. Based on current market prices, revenue from the deal is expected to be over CNY5 billion.

Lopal did not specify which of its factories will supply the materials, but deliveries from its Indonesian plant started in January after it went into operation in October.

Compared to ternary lithium batteries commonly used by international electric vehicle manufacturers, batteries using lithium iron phosphate as the cathode material are not only cheaper to produce but are also safer and more eco-friendly.

Eve Energy’s Malaysian factory in Kedah state mainly makes cylindrical lithium batteries for power tools and two-wheeled electric vehicles. Its first product rolled off the assembly line in February, and it is expected to turn out 680 million batteries a year when at full capacity. The Huizhou-based firm's plans also call for an energy storage battery production line to be built at the plant.

This is the second large supply order for lithium iron phosphate cathode materials that Lopal has won over the past month. On May 9, the company said it had received an order for 150,000 tons of the product from Cornex New Energy, a Chinese energy storage and power battery maker, starting from this year through 2029.

Moreover, Lopal signed five-year supply contracts for lithium iron phosphate cathode materials with leading South Korean battery producers LG Energy Solutions and BlueOval SK last year.

Editor: Futura Costaglione