(Yicai) Nov. 7 -- Shares of Tinci Materials Technology surged after the major Chinese supplier of electrolytes and electrolyte chemicals for lithium batteries said it has secured three-year supply deals from each of Gotion High-Tech and China Lithium Battery Technology, also known as CALB.

Tinci [SHE: 002709] closed 9.3 percent higher at CNY43.71 (USD6.14) a share today. The broader Shenzhen market fell 0.4 percent. 

Volkswagen Group-backed Gotion will buy 870,000 tons of electrolytes from Tinc from next year through 2028, the Guangzhou-based supplier announced late yesterday, citing a deal the pair inked on the same day.

In addition, Tinci penned a separate deal with CALB to provide it with 725,000 tons of electrolytes in the same period, it added.

The actual amount of electrolytes to be supplied, product specifications, price per unit, delivery time, and other details are subject to the purchase orders that still need to be signed between Tinci and the two buyers, the company noted.

Based on a rough calculation using the current average price of electrolytes for lithium-iron phosphate batteries, the two deals will be worth a total of no less than CNY33 billion (USD463.2 million). The price of electrolytes used in ternary lithium batteries is even higher.

Tinci's factory in Jiujiang along the Yangtze River is the world's largest manufacturing base for liquid lithium hexafluorophosphate, a core component chemical in electrolytes.

In July and September, Tinci penned long-term supply agreements for electrolytes and electrolyte chemicals with two energy storage battery suppliers for a total of 1.35 million tons of products to be delivered by the end of 2030.

CALB is one of the world's top suppliers of lithium batteries, ranking among Contemporary Amperex Technology, BYD, and LG Energy Solution by shipments.

Volkswagen indirectly owns about 25 percent of Gotion, installing the Chinese firm's batteries on its cars in Europe.

Editor: Martin Kadiev