Chinese cathode material giant Ronbay Technology has reached a monumental agreement with global battery leader CATL. The two parties signed a long-term supply contract for LFP cathode materials, with the first batches expected to be delivered soon.
120 Billion! A Historic Battery Order
According to CN EV Post, citing stock exchange announcements, this contract will run from the first quarter of 2026 through 2031. During this period, Ronbay is expected to supply CATL with a staggering 3.05 million tonnes of LFP material.
The total value of the order is reported to be 120 billion Yuan (approximately €14.8 billion Euros). This stands as the largest single order to date in the battery industry, shattering records for both companies.
Ronbay’s Crossover and Market Concerns
This partnership is particularly dramatic given Ronbay’s history. The company traditionally specialized in “ternary” materials (NMC and NCA) and only officially entered the LFP sector in 2025, yet has now secured the industry’s biggest contract.
As a company listed on the Shanghai Stock Exchange, Ronbay was required to disclose capacity details. Regulators may scrutinize whether Ronbay could use this massive volume to dominate the raw material market and squeeze other suppliers.
CATL’s Move on Fulin Precision: Not Just One Basket
However, CATL is not relying on a single source. To diversify its supply chain risks, the battery giant also plans to directly invest in another Chinese LFP supplier, Fulin Precision Machining.
According to filings, CATL will become a strategic investor through a private placement, investing 3.18 billion Yuan (approx. €390 million). Upon completion, CATL will hold just over five percent of Fulin’s shares.
Fulin plans to use these funds for expansion projects, including increasing annual production capacity to 500,000 tonnes for LFP materials used in energy storage, as well as producing key components for electric vehicle powertrains.
Supply Chain Anxiety Behind Soaring Lithium Prices
The timing of these two major moves in the LFP supply chain is no coincidence. Since the fourth quarter of 2025, lithium carbonate prices in China have seen extreme volatility, surging across both industrial and battery grades.
Since September alone, spot prices for battery-grade lithium carbonate have skyrocketed by 73 percent. They currently stand at around 164,000 Yuan per tonne, a sharp rise from just 95,000 Yuan in early December.
For most of 2025, prices were relatively low, costing less than 80,000 Yuan per tonne. This sudden explosion in costs has forced industry giants to aggressively lock in upstream resources to ensure future security.
