Zhejiang Yongtai Technology's (SHE:002326) subsidiary, Zhejiang Yongtai New Energy Materials, signed a sale agreement with Contemporary Amperex Technology (SHE:300750, HKG:3750), according to a Shenzhen bourse filing on Friday.

The fluorine fine chemicals manufacturer will supply CATL with electrolyte additive vinylene carbonate.

The delivery is capped at 20,000 tons in 2027, and it will rise to 30,000 tons in 2028 and 40,000 tons in 2029.

Yongtai's shares fell 4%, while CATL's Hong Kong and Shenzhen shares both dropped around 5% at the close.