(Yicai Global) May 13 -- China's leading battery maker Contemporary Amperex Technology, known as CATL, will take a 40 percent stake in a lithium iron phosphate producer to shore up supplies of raw materials for new energy vehicle power cells.

The Fujian-based firm will pay CNY40 million (USD5.9 million) for the stake in Lintie Technology through a joint venture agreement with its owner Dyanonic, according to a statement.

CATL and Dynanonic will increase their respective investments in Lintie to CNY131.5 million and CNY118.5 million if it meets certain undisclosed requirements. CATL will hold a 49 percent stake in a joint venture with Dynanonic after the investment increase.

The JV aims to produce 10,000 tons of lithium iron phosphate per year in the first phase, and CATL will purchase lithium iron phosphate worth up to CNY131.5 million.

The two will hold talks on further raising the JV's production capacity after the end of the first phase.

Editor: William Clegg