Chinese battery manufacturer CATL has signed a far-reaching supply agreement for lithium iron phosphate (LFP) cathode material. From the first quarter of 2026 to the end of 2031, Ningbo Ronbay New Energy Technology is set to deliver around 3.05 million tons of LFP cathode material.
Startling order value
In its original stock exchange announcement, Ronbay cited an estimated order value of the equivalent of approximately 17.2 billion US dollars. This figure attracted industry-wide attention as the largest contract in the history of the lithium and battery industry. Notably, Ronbay is primarily known for ternary cathode materials and has only officially been active in the LFP segment since 2025. The order would affect a significant portion of future production.
Actual sales dependent on the market
Shortly after the announcement, the Shanghai Stock Exchange intervened and requested additional information. Specifically, it asked for annual delivery and capacity commitments, as well as an assessment of Ronbayʼs ability to meet the agreed-upon quantities. Additionally, it asked for disclosure of risks from fluctuating raw material prices and uncertain call-off quantities. In a subsequent announcement, Ronbay stated that the contract value mentioned was merely the companyʼs estimate. Actual sales would depend on future raw material prices and the quantities called off in each case and thus be uncertain.
Stock trading temporarily suspended
Consequently, trading in the companyʼs shares was temporarily suspended. In addition, the Chinese securities regulator launched an investigation into possible misleading statements. Ronbay announced that operations were continuing as normal and that the company had sufficient financial resources to meet the contractual requirements.
Sources:
https://cnevpost.com/2026/01/14/catl-signs-lithium-order-with-ronbay/
https://cnevpost.com/2026/01/15/ronbay-tempers-hype-deal-with-catl/
https://www.reuters.com/business/energy/chinas-ningbo-ronbay-says-its-being-probed-over-statements-made-about-17-bln-2026-01-18
