Contemporary Amperex Technology Co., Limited (CATL), the world’s largest electric vehicle battery manufacturer, has secured a long-term supply of lithium iron phosphate (LFP) cathode material through a 2026–2031 agreement with Ningbo Ronbay New Energy Technology. Under the contract, Ronbay will deliver approximately 3.05 million tons of LFP cathode material, with aggregate sales valued at more than RMB 120 billion (about USD 17.2 billion).
The Shanghai Stock Exchange has requested that Ronbay provide additional disclosures on its annual production capacity commitments, fulfillment capabilities, and the potential impacts of raw material price volatility, procurement demand uncertainties, and production reserve unpredictability. Ronbay, a producer of battery cathode materials—particularly ternary compounds—entered the LFP segment in 2025.
In parallel with the Ronbay deal, CATL is investing in another Chinese LFP material supplier, Fulin Precision Machining. Through a private placement, Fulin aims to raise RMB 3.18 billion by bringing CATL on board as a strategic investor. Once the transaction closes, CATL will hold a stake exceeding 5 percent in Fulin. The capital will support projects such as building 500,000 tons of annual high-end LFP material capacity for energy storage applications, as well as developing key components for electric drive systems in vehicles.
These strategic moves come amid a significant surge in lithium prices across China. Since December, spot prices for battery-grade lithium carbonate have climbed approximately 73 percent, rising from RMB 95,000 per ton to around RMB 164,000 per ton. By securing long-term material agreements and making targeted investments, CATL aims to strengthen its supply chain resilience and maintain its leadership in the rapidly growing EV battery market.
Source: CNEV Post
