(Yicai Global) Dec. 3 -- Huayou Cobalt’s shares jumped after the Chinese miner won its third large long-term supply contract in a month.

Huayou [SHA: 603799] ended today 4 percent higher at CNY138.90 (USD21.80), after earlier soaring by as much as 6.6 percent.

Huayou will supply 161,500 tons of lithium battery raw materials to power battery supplier Farasis Energy over four years, the Zhejiang province-based miner said late yesterday. The two parties signed the deal yesterday.

Farasis Energy will first test and buy ternary precursor raw materials from Huayou, the statement said. The total could reach CNY22 billion (USD3.5 billion) based on today’s spot price of CNY137,500 to CNY147,500 (USD21,584 to USD23,153) a ton on the Shanghai Metal Exchange Market.

Ternary precursor materials are made from compounds of nickel, cobalt and manganese, and are used to prepare cathode materials for ternary lithium batteries with relatively high energy density.

It is the third long-term purchase deal for ternary lithium cell precursor materials that Huayou has signed recently. The total volume of the first two deals was 715,000 to 765,000 tons, with both contract periods running from next year to 2025.

Huayou and Farasis also plan to set up a joint lab to develop next-generation batteries with better performance and will cooperate in the recycling of waste materials generated during production and used batteries.

Shares of Farasis Energy [SHA:688567] finished up 3.9 percent at CNY37.66 each.

Editor: Tom Litting