(Yicai Global) July 05 -- Shares of Jiangsu Ruitai New Energy Materials rose after the Chinese supplier of lithium-ion battery materials said it received a long-term order from energy storage battery supplier Freyr Battery Norway.

Ruitai New Energy [SHA: 30123] was trading up 2.7 percent at CNY39.99 (USD5.97) as of today’s lunch break, after earlier gaining as much as 7.1 percent.

A unit of Ruitai New Energy will provide Freyr Battery with lithium-ion battery electrolytes worth about USD526 million from July 2023 to December 2028, the Zhangjiagang, Jiangsu province-based parent company announced yesterday, citing the framework agreement the pair signed on June 30. The actual sales amount and price will be negotiated depending on the market conditions at the time of delivery.

Ruitai New Energy, a holding unit of Shenzhen-listed Guotai International Group, is one of China’s leading lithium-ion battery electrolyte suppliers. It counts power battery giants Contemporary Amperex Technology and LG Chem among its major clients.

Guotai International, which still holds a 70.9 percent stake in Ruitai New Energy after the firm completed a spin-off listing on Shenzhen’s ChiNext board in June, has announced four plans to expand Ruitai New Energy’s battery electrolyte capacity since December last year. One of them includes the construction of a 260,000-ton factory in Poland to satisfy the demand for battery raw materials from European customers.

Luxembourg-based Freyr Battery is an industrial-scale clean battery solution provider for fast-growing electric vehicles, energy storage, and vessel applications global markets. It has offices in Norway’s Oslo and Mo i Rana.

Editor: Futura Costaglione