Quick Takeaways
- Two companies locked a massive six-year lithium iron phosphate supply that guarantees raw material security for next-gen batteries.
- The deal secures over three million tons of cathode material to support the fast-growing global EV and energy storage market.
CATL (HKG: 3750, SHE: 300750), the world’s largest power battery manufacturer, finalized a major CATL LFP material supply agreement while also reinforcing its upstream position by investing in another lithium supplier to secure long-term access to critical raw materials.
Shanghai-listed Ningbo Ronbay New Energy Technology (SHA: 688005) confirmed through a stock exchange filing that it has entered into a long-term LFP cathode materials contract with CATL. The agreement covers deliveries starting from the first quarter of 2026 and running through the end of 2031.
CATL LFP material supply locked in for six-year period
Under the newly signed CATL LFP material supply contract, Ronbay will provide lithium iron phosphate cathode materials over a six-year span, ensuring stable feedstock for CATL’s rapidly expanding battery production lines. The deal strengthens CATL’s ability to meet rising global demand for electric vehicle and energy storage batteries.
The contract specifies a total supply volume of 3.05 million tons of LFP cathode material over the duration of the agreement, making it one of the largest long-term LFP material commitments announced in the battery sector.
Key commercial terms of the CATL LFP material supply deal
Ronbay disclosed that the cumulative value of deliveries under the agreement is expected to exceed RMB 120 billion, equivalent to about $17.2 billion at current exchange rates. This positions the deal as a strategically important revenue stream for the materials supplier and a critical supply anchor for CATL.
The agreement highlights several important aspects:
Strategic importance for CATL and the battery supply chain
By securing a long-term CATL LFP material supply, the battery giant is reducing exposure to raw material price volatility and potential shortages in the lithium iron phosphate segment, which is increasingly favored for cost-effective and durable electric vehicle batteries.
At the same time, CATL’s investment in another lithium supplier further supports vertical integration across the battery value chain. This dual approach of long-term procurement contracts and equity investments strengthens CATL’s control over critical battery materials.
For Ronbay, the agreement provides stable demand visibility for LFP cathode materials at a scale rarely seen in the market, supporting capacity expansion and long-term planning.
As global electric vehicle adoption accelerates and energy storage deployments grow, deals of this scale underline how material security is becoming as important as cell manufacturing capacity in shaping the future of the battery industry.
Shanghai-listed Ningbo Ronbay New Energy Technology (SHA: 688005) confirmed through a stock exchange filing that it has entered into a long-term LFP cathode materials contract with CATL. The agreement covers deliveries starting from the first quarter of 2026 and running through the end of 2031.
CATL LFP material supply locked in for six-year period
Under the newly signed CATL LFP material supply contract, Ronbay will provide lithium iron phosphate cathode materials over a six-year span, ensuring stable feedstock for CATL’s rapidly expanding battery production lines. The deal strengthens CATL’s ability to meet rising global demand for electric vehicle and energy storage batteries.
The contract specifies a total supply volume of 3.05 million tons of LFP cathode material over the duration of the agreement, making it one of the largest long-term LFP material commitments announced in the battery sector.
Key commercial terms of the CATL LFP material supply deal
Ronbay disclosed that the cumulative value of deliveries under the agreement is expected to exceed RMB 120 billion, equivalent to about $17.2 billion at current exchange rates. This positions the deal as a strategically important revenue stream for the materials supplier and a critical supply anchor for CATL.
The agreement highlights several important aspects:
- Guaranteed multi-year LFP cathode material volumes
- Coverage from Q1 2026 through 2031
- Total supply of 3.05 million tons
- Estimated sales value above RMB 120 billion
Strategic importance for CATL and the battery supply chain
By securing a long-term CATL LFP material supply, the battery giant is reducing exposure to raw material price volatility and potential shortages in the lithium iron phosphate segment, which is increasingly favored for cost-effective and durable electric vehicle batteries.
At the same time, CATL’s investment in another lithium supplier further supports vertical integration across the battery value chain. This dual approach of long-term procurement contracts and equity investments strengthens CATL’s control over critical battery materials.
For Ronbay, the agreement provides stable demand visibility for LFP cathode materials at a scale rarely seen in the market, supporting capacity expansion and long-term planning.
As global electric vehicle adoption accelerates and energy storage deployments grow, deals of this scale underline how material security is becoming as important as cell manufacturing capacity in shaping the future of the battery industry.
Company Press Release
Click above to visit the official source.
Share: