The 'King' makes its move, and the industry landscape shifts accordingly.

In June 2026, Contemporary Amperex Technology Co., Ltd. (SHE: 300750) issued two consecutive long-term supply agreements, sending shockwaves through the electrolyte industry.

On June 7, Zhejiang Yongtai Technology Co., Ltd. (SZSE: 002326) secured a 470,000-ton electrolyte procurement contract. The following day, Shenzhen Capchem Technology Co., Ltd. (SZSE: 300037) landed a 300,000-ton deal. These two contracts total 770,000 tons, corresponding to 770 GWh of lithium battery production capacity—a figure surpassing CATL's entire 2025 shipment volume of 661 GWh. Market attention, however, has sharply turned towards the notable 'absentee'.

Guangzhou Tinci Materials Technology Co., Ltd. (SZSE: 002709), the industry leader that once accounted for half of CATL's electrolyte procurement, has yet to renew its contract after its previous long-term agreement expired on December 31, 2025.

Supply Chain Restructuring

The selection of Capchem by the 'King' was not a surprise to the market, but the scale and structure of the contract exceeded expectations.

According to the announcement, from 2026 to 2028, CATL will purchase 50,000, 100,000, and 150,000 tons of electrolyte from Capchem respectively, totaling 300,000 tons over three years. This is a classic 'ramp-up' agreement—starting with a trial year, doubling in the second, and increasing by 50% in the third.

Based on the current market price of approximately 30,000 yuan per ton for electrolyte, this order represents a transaction value of around 9 billion yuan. For Capchem, a company with 2025 revenue under 10 billion yuan, this represents a pivotal turning point.

Why Capchem? Analysts suggest CATL chose Capchem as a core supplier due to its comprehensive strengths in "global production capacity layout and high-end formulation technology."

In 2025, Capchem's battery chemical production capacity reached 681,600 tons, with an output of 529,300 tons and a capacity utilization rate of 77.66%. It also has 536,000 tons of capacity under construction, placing it among industry leaders. Crucially, Capchem has a production base in Poland and has signed a long-term supply agreement worth 1.1 billion euros with a German client (2028-2034), demonstrating its capability to serve major international battery manufacturers. This aligns perfectly with CATL's needs, as its Thuringia, Germany plant is operational and its Hungary factory is progressing, creating an urgent demand for localized European supply. Capchem's Polish base can meet this strategic need—enabling local delivery, reducing logistics costs, and avoiding trade barriers.

Furthermore, Capchem possesses its own R&D and customized formulation systems, with products covering high-value-added fields like power and energy storage batteries. Its organic fluorine chemicals boast a gross margin as high as 62.8%, indicating significant technological barriers. This technological reserve can provide R&D synergy for CATL's next-generation battery technologies.

Thus, CATL's electrolyte supply map is becoming clearer: Yongtai Technology, Capchem, and Tinci Materials stand as the three main suppliers, but their relative weights have changed.

Yongtai Technology secured a massive 470,000-ton order, with its advantage lying in upstream integration—controlling the entire chain from lithium hexafluorophosphate to finished electrolyte, giving it strong cost control capabilities.

Capchem holds a 300,000-ton ramp-up order, securing its position as a 'technology-focused' supplier with its global capabilities and high-end formulations. Tinci Materials, the former primary supplier, now finds itself on the outside. Regarding the new partnership, a Capchem representative stated that all relevant operational and financial matters have been disclosed per regulations, and the official announcements should be referred to for authoritative details.

Reports indicate that Tinci Materials' previous long-term agreement with CATL concluded on December 31, 2025, and no new cooperation has been announced. During an earnings call, a Tinci Materials executive stated that any future long-term agreements would be disclosed according to information disclosure rules.

Reasons for the Shift

The reason Tinci Materials was temporarily sidelined is not due to poor performance, but rather CATL's need to 'rebalance' its supply chain.

First, supply chain security is paramount. CATL is locking in core suppliers through long-term agreements to 'further squeeze the survival space of small and medium-sized manufacturers, leading to continued industry concentration.' However, for CATL, increased concentration does not mean putting all its eggs in one basket.

Analysis suggests that while Tinci Materials is the industry leader, its high sales dependency on CATL represented a risk for both parties. Introducing Yongtai Technology and Capchem as a 'dual insurance' creates a 'tripartite' supply structure. This ensures that if one supplier's capacity ramp-up falls short, another can quickly fill the gap, a strategic move to guarantee 'absolute security' of electrolyte supply from 2026 to 2028.

Second, it's about redistributing bargaining power. In business negotiations, higher supplier concentration reduces the buyer's pricing leverage. Tinci Materials once accounted for over 50% of CATL's electrolyte procurement, giving it significant weight in price negotiations. CATL is evidently unwilling to be in a passive position. By fostering Yongtai Technology and Capchem, it replicates a 'duopoly competition' dynamic, creating checks and balances among suppliers—a classic strategy for a supply chain leader.

The allocation of the total 770,000-ton locked volume to two suppliers (Capchem 300,000 tons + Yongtai Technology 470,000 tons), with Tinci Materials receiving nothing for now, sends a strong signal.

Third, there is a mismatch in internationalization capabilities. Tinci Materials' global expansion pace may not fully align with CATL's ambitious European strategy. Capchem's Polish base is already operational, and Yongtai Technology is accelerating its overseas layout. While Tinci Materials is also pursuing internationalization, the maturity and delivery capability of its overseas capacity still require time to verify. In the context of CATL's accelerated European strategy, the ability to provide 'localized support' offers a significant advantage.

Underlying Motives for Locking Supply

Why is CATL locking in supply with such intensity at this particular moment? The answer is straightforward yet complex, with rising raw material prices being the most direct catalyst.

Third-party data shows the current electrolyte price is around 30,000 yuan per ton, a cumulative increase of over 70% from a low of 17,500 yuan/ton in 2025. Once a price increase trend forms, downstream battery manufacturers have two main strategies: absorb the cost pressure or lock in supply and prices in advance. CATL chose the latter, and acted swiftly.

Since the second half of 2025, several second and third-tier battery manufacturers have already signed long-term electrolyte agreements with suppliers including Tinci Materials. With competitors moving, CATL had to act more decisively.

Analysis points out that the total 770,000-ton locked volume exceeds the demand corresponding to CATL's entire 2025 shipments. This 'over-locking' is essentially using scale to secure supply priority—when industry prosperity continues to rise, clients with larger locked volumes will inevitably receive priority supply.

This large-scale locking of supply also reflects CATL's precise judgment of the industry's cyclical recovery. The performance surge in the electrolyte industry chain validates this recovery. In Q1 2026, the net profit of Tinci Materials, Capchem, and Yongtai Technology all saw dramatic year-on-year growth, far exceeding revenue growth, indicating a structural improvement in profitability.

An executive from Capchem stated that the electrolyte business is expected to maintain a compound annual growth rate of over 30% in the next 1-2 years, driven by high lithium battery industry景气度. However, the more份额头部 battery厂 lock through long-term agreements, the less space is left for others. Analysis suggests the long-term agreement model will accelerate the 'Matthew Effect', shifting industry competition from 'price wars' to 'comprehensive value wars'—where technological synergy, cost control, and global配套 capabilities become the key differentiators.

The Sodium Battery Wildcard

Amidst the fierce competition in lithium battery electrolyte, CATL is also extending its reach into the sodium battery sector. CATL's chief scientist has stated that a series of sodium battery products will achieve mass production in 2026, with the first sodium battery energy storage systems scheduled for delivery in September 2026, targeting 'GWh-level' shipments for the year. The rise of sodium batteries will drive demand for sodium battery electrolyte.

Research data shows global sodium battery electrolyte shipments reached 11,000 tons in 2025, a 120% year-on-year increase, and are projected to reach 1.577 million tons by 2030, representing a five-year compound annual growth rate of 160.37%. This isn't merely a 'new product category supplement' but a potential shift in the material system. The core溶质 for sodium battery electrolyte differs fundamentally from that of lithium battery electrolyte. A technological路线 switch would reshuffle the supply chain格局.

Currently, both Capchem and Tinci Materials have布局 sodium battery electrolyte. Other companies have also announced commercialization of key sodium battery materials. This indicates CATL's current electrolyte supply system is already preparing for the sodium battery era. A deeper driver is the持续走高 price of lithium carbonate, a core variable propelling sodium battery industrialization.

If sodium batteries achieve large-scale substitution, the supply-demand dynamics for lithium battery electrolyte could be rewritten. CATL's 770,000-ton lithium battery electrolyte long-term agreements today ensure absolute security for the present, while its密集落子 in the sodium battery field prepares for potential future technological shifts.

Risks and Responsibilities

It is worth noting that not everyone is optimistic about this 'deep binding'. Risks exist for both the supply chain leader and its suppliers. A key risk highlighted is that if Capchem's revenue dependency on CATL surges from its current level to over 50%, its bargaining power could face severe tests. The industry commonly sees 'customer-supplied formulations', where leading battery厂 like CATL develop their own formulas, and suppliers merely handle production. In this model, technological added value is compressed, and scenarios of 'high volume with thin margins' are plausible.

Analysis also suggests that while a major client brings business certainty, deep binding can become a risk if the supplier lacks distinct competitive advantages and is easily replaceable. CATL itself is not without concerns. It has reshaped the supplier competitive landscape from 'single dominance' to 'pluralistic checks and balances', but the effectiveness of this strategy depends on whether two or more suppliers can maintain comparable competitiveness. If one falls behind in the future, the balanced格局 could collapse back into a single-pole structure.

A greater variable still comes from sodium batteries. If sodium batteries achieve规模化放量 around 2028, the demand growth for lithium battery electrolyte may slow. Could the multi-billion yuan long-term agreements signed today then become a heavy burden?

The industry competition core is shifting towards a 'comprehensive value war'—not just on price, but on technological synergy and global配套. On this track, what CATL needs is not simple suppliers, but 'communities of shared destiny' capable of resonating with its global expansion and technological迭代.

CATL has consistently used mature supply chain strategies to consolidate its industry position. It previously built formidable raw material barriers in upstream resources like lithium, cobalt, and nickel through equity investments, long-term agreements, and joint ventures. This playbook is now being replicated in the electrolyte sector—through volume locking,份额 allocation, and supplier制衡, it is taking firm control over the话语权 in this hundred-billion-yuan细分赛道.

However, the power of a链主 always comes with its responsibilities. As lithium carbonate prices remain high, sodium battery industrialization accelerates, and global trade barriers increase, CATL's supply chain security will depend on its ability to find a balance between 'control' and 'flexibility'. With Yongtai Technology and Capchem successfully entering the fold, and Tinci Materials awaiting a return to the core supply chain, the new industry格局 orchestrated by the 'King' has just begun—this game is far from over.