Jiangsu Lopal Tech (SHA:603906, HKG:2465) said it has signed a new purchase framework agreement with Contemporary Amperex Technology (CATL) (SHE:300750, HKG:3750) covering the supply of lithium iron phosphate (LFP) cathode materials in China, according to a Thursday Hong Kong bourse filing.

Hong Kong-listed shares of Lopal Tech were down 2% in Friday morning trade.

The agreement runs from Jan. 1 to Dec. 31, 2026, and sets an annual transaction cap of 7 billion yuan, the company said.

Under the framework, CATL and its group companies will purchase Lopal's LFP cathode products, with pricing set on arm's-length commercial terms and linked to market benchmarks and production costs.

The deal follows the expiry of a previous framework agreement at the end of 2025 and is expected to support Lopal's domestic sales and capacity expansion, the filing said.