(Yicai Global) April 3 -- Canmax Technologies, a Chinese maker of cleanroom products and battery materials which used to be known as TA&A Ultra Clean Technology, could gain over CNY27 billion (USD3.9 billion) by supplying Ford Motor with raw materials for ternary lithium batteries over three years.

Two southwestern plants of the anti-static product developer will deliver the American carmaker 72,500 tons of lithium hydroxide between January 2025 and December 2027, the Suzhou-based firm said in a statement yesterday, citing a purchase agreement. Ford has the option of extending the supply agreement till December 2029.

Pricing will be based on a formula that the pair has agreed on, Canmax said, without disclosing the formula. But according to the current market prices of lithium hydroxide, the deal could be worth more than CNY27 billion.

The world's biggest battery manufacturer, Contemporary Amperex Technology, holds a nearly 1.4 percent stake in Canmax, according to public data. CATL and Canmax have also established a joint lithium salt production plant in Sichuan's Yibin, and CATL owns a quarter of it.

Michigan-headquartered Ford said in February that it will make use of CATL's technologies to build a USD3.5 billion plant for lithium iron phosphate batteries in Detroit, the largest city in its home state.

Canmax adopted its new name last month to better reflect the widening importance of the battery materials segment in its business.

Shares of Canmax [SHE:300390] were 1.4 percent up at CNY51.92 (USD7.50) as of 1.57 p.m.

Editor: Emmi Laine, Xiao Yi