(Yicai) June 17 -- Shares of Tinci Materials Technology surged after the major Chinese supplier of electrolytes and electrolyte chemicals for lithium batteries received a large order from Contemporary Amperex Technology, the world’s largest battery maker.

Tinci [SHE: 002709] closed up 7.7 percent at CNY20.53 (USD2.83) a share in Shenzhen today, after earlier surging by its 10 percent exchange-imposed daily trading limit.

Tinci and its affiliates will provide CATL with lithium battery electrolytes from today to the end of next year, the Guangzhou-based supplier announced.

It did not estimate the value of the deal, nor the amount of electrolytes to be supply, but did say that the products should comprise 58,600 tons of lithium hexafluorophosphate, or LiPF6, the key component chemical for the battery electrolyte.

The order is likely bring Tinci operating revenue of CNY10 billion (USD1.4 billion) based on a LiPF6 price of about CNY68,000 (USD9,370), per figures on commodity information website 100PPI, and the fact that LiPF6 usually accounts for about 40 percent of the total cost of battery electrolyte.

Tinci sold 396,000 tons of lithium battery electrolytes last year, up 24 percent on the previous year, thanks to rapid growth in the electric vehicle market, according to its latest annual earnings report.

Its revenue from the electrolytes and chemical components business was CNY14.1 billion in 2023, accounting for 92 percent of the total. The firm sold CNY8.1 billion (USD1.1 billion) to CATL, making up over half of its entire income.

In addition to its plans in China, Tinci also has an original product manufacturing plant in Germany and is preparing to build a new factory in the United States and Morocco.

Editor: Futura Costaglione