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Contemporary Amperex Technology, the world’s largest battery manufacturer, has entered into a second major supply agreement for lithium battery materials with Yongtai Technology within just one month.
Yongtai will supply CATL with 20,000 tons of vinylene carbonate next year, 30,000 tons in 2028, and 40,000 tons in 2029. The supplier, based in Zhejiang Province, made the announcement yesterday without providing additional specifics. Given the current market price of approximately CNY130,000 (USD19,115) per ton, this deal is valued at roughly CNY11.7 billion (USD1.7 billion).
Vinylene carbonate (VC) is an essential electrolyte additive for lithium batteries, offering enhanced protection for battery anodes and improving overall cycle life and safety. The typical weight proportion of VC in lithium battery electrolytes ranges from 1% to 6%, with power batteries typically containing around 2% to 4%.
Earlier, on June 8, Yongtai revealed plans to supply a total of 470,000 tons of lithium battery electrolytes to CATL from this year through 2028. This contract is estimated to be worth approximately CNY12.7 billion based on market prices at the time.
Yongtai is recognized as one of China’s leading producers of battery electrolytes. According to its 2025 financial statement, last year the company produced 107,300 tons of battery chemicals, with sales totaling 107,200 tons and related revenue reaching CNY2.1 billion (USD311.8 million), accounting for 41% of its total revenue.
The company operates a vinylene carbonate production line with a capacity of 10,000 tons annually, and it is constructing an additional line with a capacity of 20,000 tons. Earlier this week, Yongtai announced plans to invest CNY800 million (USD117.6 million) to establish a new VC facility in Inner Mongolia, which is expected to have a production capacity of 50,000 tons per year.
Construction of the new plant is scheduled for completion by the end of next year, aiming to meet increasing downstream demand and strengthen the company’s supply chain integration.
Yongtai has maintained a longstanding relationship with CATL, starting with a five-year supply agreement in 2021 for three electrolyte additives, with a minimum monthly purchase of 200 tons of VC. In early 2024, the companies signed another deal in which CATL committed to buying at least 100,000 tons of lithium battery electrolyte annually for 2024 and 2025.
Today, Yongtai’s stock [SHE: 002326] closed 3.9% lower at CNY24.48 (USD3.59), while CATL’s shares [SHE: 300750] fell by 5.2% to CNY381 (USD56.02). The Shenzhen Component Index, the benchmark for the Shenzhen stock market, declined by 3.4% on the day.
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