(Yicai) March 27 -- Ronbay New Energy Technology and SK On have agreed to jointly develop and produce lithium battery cathode materials for overseas new energy vehicle customers.

Ronbay recently inked a deal with the South Korean battery giant to deepen cooperation on developing new cathode materials that use ternary or lithium manganese iron phosphate as a major ingredient, the Ningbo-based firm said late yesterday. It will sign specific co-development and purchasing agreements for these types of materials at an appropriate time, it added.

SK On, the battery unit of SK Innovation under SK Group, has high-energy-density electric vehicle battery factories in Europe, the United States, and China, Ronbay pointed out, adding that it has business tie-ups with major global auto companies.

A successful collaboration can help Ronbay bring its lithium battery cathode material products into SK On's batteries, making the Chinese firm an upstream supplier for many overseas NEV makers and promoting the large-scale application of related products in the power and energy storage markets in Japan, South Korea, Europe, and the US, Ronbay said.

On Feb. 1, Ronbay and another South Korean battery giant LG Energy Solution inked a similar deal to jointly develop and produce lithium battery cathode materials for the power and energy storage markets in Japan, South Korea, Europe, and the US.

Ronbay is the leading developer of cathode material with lithium manganese iron phosphate as a major ingredient, which has huge market potential. It has higher energy density and better low-temperature performance than the commonly applied lithium iron phosphate ingredient.

Ronbay began its plant setup for cathode materials and waste battery recycling in South Korea in 2023. Last August, the company said it plans to spend CNY2.6 billion (USD360.2 million) to build two battery cathode material factories in Chungju, one for ternary and one for lithium manganese iron phosphate, to better meet demand from local battery makers and effectively break trade barriers to expand its overseas footprint.

Ronbay's stock [SHA: 688005] fell 4.2 percent to close at CNY27.39 (USD3.79) in Shanghai today. The SSE Science and Technology Innovation Board 50 Index fell 2.5 percent.

Editor: Martin Kadiev