The leading lithium battery electrolyte producer has secured another significant supply agreement.

On June 7, Shenzhen Capchem Technology Co.,Ltd. (300037) announced the signing of an Electrolyte Cooperation Agreement with leading power battery manufacturer Contemporary Amperex Technology Co.,Ltd. (CATL). The agreement outlines the procurement volume of electrolyte by CATL from Capchem over a three-year cooperation period spanning from 2026 to 2028.

According to the announcement, both parties will engage in the purchase and sale of electrolyte materials during the agreement's validity. Specific details including product name, specifications, unit price, quantity, and technical standards will be finalized in written orders or other documents mutually confirmed by both sides.

The agreement specifies a tiered, increasing procurement scale over the next three years, with reasonable fluctuation ranges. Specifically, CATL is expected to purchase 50,000 tons of electrolyte from Capchem in 2026, with a permissible fluctuation of ±10%. The procurement volume is set to increase to 100,000 tons in 2027, with an expanded fluctuation range of ±12%. In 2028, the volume will further rise to 150,000 tons, with a fluctuation limit of ±15%.

The parties have agreed to conduct monthly plan reviews and follow-ups. If the planned volume for a given month is not met, adjustments will be made in the following month. Annual actual procurement volumes that do not exceed the stipulated fluctuation limits will not be considered a breach of contract. If the limits are exceeded, both parties have agreed to make up the shortfall in the subsequent year.

Capchem stated that the successful execution of this agreement is anticipated to positively impact the company's operating results for the three fiscal years from 2026 to 2028. The signing of the agreement is beneficial for establishing a long-term, stable cooperative relationship between the two parties. It is expected to further enhance the company's position within the industry chain, its market influence, core competitiveness, and consolidate its market advantages.

Capchem's main products include battery chemicals, organic fluorine chemicals, capacitor chemicals, and semiconductor chemicals. These products are applied in various fields such as new energy vehicles, consumer electronics, urban rail transit, biomedicine, digital infrastructure, photovoltaic energy storage, and industrial manufacturing.

Lithium battery electrolyte is one of the four key materials in lithium batteries. Composed of solvent, lithium salt, and additives, it acts as the "blood" for ion transport within the battery, facilitating the stable conduction of lithium ions. It plays a crucial role in determining the battery's energy density, power density, cycle life, and safety performance.

Capchem has previously indicated that, driven by factors such as policy support, technological advancement, economies of scale, and an increasingly mature industry chain, the new energy electric vehicle and energy storage markets are entering a period of sustained growth. Demand for battery electrolyte is expected to rise further. As one of the major suppliers in the battery chemicals sector, Capchem has established long-term, stable cooperative relationships with the vast majority of global leading customers. These factors provide strong support for the stable growth of the company's future market share.

Financial reports show that in 2025, Capchem's battery chemicals production capacity was 681,600 tons, with an output of 529,300 tons, resulting in a capacity utilization rate of approximately 77.66%. Additionally, Capchem has 536,000 tons of battery chemicals production capacity under construction.

In 2025, Capchem's total operating revenue reached 9.639 billion yuan, a year-on-year increase of 22.84%. Net profit attributable to the parent company was 1.097 billion yuan, up 16.48% year-on-year. The revenue growth from battery chemicals, which includes lithium battery electrolyte, was the primary driver of the company's performance growth. In 2025, Capchem's revenue from battery chemicals amounted to 6.679 billion yuan, representing a 30.57% increase compared to the previous year.

Influenced by improved market sentiment, Capchem's stock price has shown strong performance. Since the beginning of 2025, Capchem's share price has risen by over 100%. As of the market close on June 5, Capchem's market capitalization was approximately 57.3 billion yuan.