Jiangsu Lopal Tech (SHA:603906, HKG:2465) said it agreed to expand an agreement with CATL (SHA:300750, HKG:3750) to supply lithium iron phosphate cathode material, a key ingredient in electric car batteries, according to a Hong Kong bourse filing Monday.

Shares of the EV battery materials supplier jumped over 18% in morning trade Tuesday.

The firm said it would supply LFP cathode material for CATL's overseas projects from the second quarter of 2026 to Dec. 31, 2031.

The expected total amount of LFP cathode active materials to be supplied under the agreement is 157,500 tons.

The material will be sold on normal commercial terms and sales will be capped at 2.2 billion yuan per year, the company said.

Lopal Tech had previously been supplying LFP cathode materials to CATL, an EV battery maker, within mainland China.