(Yicai Global) Dec. 29 -- Shares of Chinese commodity trader Xiangyu rose to a more than three-month high after the firm obtained CNGR Advanced Material's five-year battery raw material order.

Xiangyu's stock price [SHA: 60057] climbed as much as 5.7 percent to CNY8.65 (USD1.40), the highest since September. The equity price is more than 40 percent up this year.

CNGR's shares [SHA: 300919] were 1.5 percent down at CNY150.46 (USD23.60) in the afternoon. The shares are still more than 60 percent higher this year.

The battery manufacturer will buy nickel compounds from the Xiamen-based raw material and logistics service provider between 2022 to 2027, Guizhou province-based CNGR said in a statement yesterday.

The deal includes different types of battery elements, namely about 80,000 tons of nickel and about 15,000 tons of cobalt. The prices will be determined later.

The pair will also cooperate on exploring and smelting nickel laterites in Indonesia to improve resource use, the statement added.

Xiangyu has nickel laterites and stainless steel assets in Indonesia and cobalt resources in the Democratic Republic of the Congo, according to CNGR.

CNGR is a major Chinese supplier of ternary precursor products. In 2020, almost 22 percent of all available ternary precursors in China were made by the firm. Ternary precursors, which include nickel, cobalt, and manganese, are used to provide lithium-ion batteries with cathodes.

Editor: Emmi Laine, Xiao Yi