(Yicai) May 31 -- Shares of Capchem Technology advanced after the Chinese fine chemical products supplier secured its second overseas order in two days.

Capchem [SHE: 300037] was trading up 2.8 percent at CNY31.42 (USD4.41) as of 10.50 a.m. in Shenzhen today, after earlier gaining as much as 4.2 percent.

Capchem Poland signed a USD676 million lithium-ion battery electrolyte supply deal with a well-known European battery maker, valid from this year until 2035, the Shenzhen-based parent firm announced yesterday.

The pair has agreed on the annual supply, delivery amount, and unit price of the lithium-ion battery electrolytes to be supplied between this year and 2030, Capchem noted, adding that the two companies also held preliminary negotiations on the details for the last five years of the agreement from 2031 to 2035.

The deal will help Capchem consolidate its competitive advantage in the global lithium battery electrolyte market, but based on the agreed delivery schedule, it will not have a significant impact on the firm’s earnings report this year, Capchem pointed out.

On May 29, Capchem announced it secured a lithium-ion battery electrolyte supply deal from a foreign power battery manufacturer that is expected to bring the company a total revenue of USD316 million between next year and 2030.

Capchem has received several overseas orders in the past years. In 2021, it signed a long-term lithium battery electrolyte supply agreement with Ultium Cells, a battery-making unit of General Motors. Last November, its factory in Poland signed a 10-year electrolyte supply deal with the power battery subsidiary of a German automotive manufacturer.

Capchem has been also actively investing in overseas production bases in recent years. The company built a lithium-ion battery electrolyte plant in Poland that came on stream last year. Moreover, it had previously announced plans to build new factories in Ohio, the US, and the Netherlands.

On May 21, Capchem also unveiled a new plan to invest USD350 million to build a lithium battery electrolyte plant in Louisiana, the US.

Editor: Futura Costaglione