Contemporary Amperex Technology Co Ltd (CATL), the world’s largest power battery manufacturer, has secured a long-term supply of lithium iron phosphate (LFP) cathode materials through a record agreement and announced a new investment in a lithium supplier, as it moves to lock in critical raw materials amid rising prices.
Shanghai-listed Ningbo Ronbay New Energy Technology said on Tuesday that it had signed an LFP cathode material supply agreement with CATL covering the period from the first quarter of 2026 through 2031. Under the deal, Ronbay expects to supply around 3.05 million tonnes of LFP cathode material, generating sales of more than 120 billion yuan ($17.2 billion), according to a stock exchange filing.
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The agreement is the largest single order disclosed to date in the lithium and battery materials industry, drawing regulatory attention. The Shanghai Stock Exchange subsequently asked Ronbay to provide additional details on its annual production capacity commitments under the contract and its ability to fulfil the supply volumes. The exchange also requested clarification on potential risks, including raw material price volatility, demand uncertainty and the availability of production capacity reserves.
Ronbay is best known for producing ternary cathode materials and formally entered the LFP sector in 2025, as demand for lower-cost battery chemistries accelerated in China and overseas markets.
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In a separate move to strengthen its supply chain, CATL is also investing in Fulin Precision Machining, another Chinese LFP material supplier. Shenzhen-listed Fulin said on Tuesday that it plans to introduce CATL as a strategic investor through a private placement, raising 3.18 billion yuan.
CATL, which previously held no stake in Fulin, will acquire more than 5% of the company upon completion of the share issuance. Fulin said the funds will be used to support projects including the construction of 500,000 tonnes of annual production capacity for high-end LFP materials for energy storage, as well as key components for electric vehicle drive systems.
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CATL’s moves come against the backdrop of a sharp rebound in lithium prices in China. Spot prices for battery-grade lithium carbonate have risen about 73% since December, climbing from around 95,000 yuan per tonne to about 164,000 yuan per tonne, increasing cost pressures across the battery supply chain.