(Yicai) Nov. 6 -- Capchem Technology’s shares jumped after the Chinese supplier of fine chemical products said that its subsidiary in Poland signed a deal to supply lithium-ion battery electrolytes to the power battery unit of a German carmaker.

Capchem [SHE: 300037] closed 5.3 percent higher at CNY44.75 (USD6.16) in Shenzhen today, after earlier jumping by as much as 7.3 percent.

The supply agreement will cover 2025 to 2034 and likely bring EUR1.1 billion (USD1.2 billion) of revenue, Capchem announced yesterday. It will also help establish long-term and stable cooperation between Capchem Poland and the client, the Shenzhen-based firm added. 

The deal will further enhance Capchem's status in the industrial chain, strengthen its market influence and core competitiveness, create conditions for its future layout in the European market, and consolidate its competitive advantage in the global market, the firm noted, without disclosing further details.

Founded in 2002, Capchem is one of the leading Chinese suppliers of power battery chemicals and mainly produces lithium-ion battery electrolytes. It has multiple domestic bases, a Polish factory that became operational in April, and plans to set up plants in the United States and the Netherlands.

Editor: Martin Kadiev