Shares of Shida Shinghwa Advanced Material Group advanced after the Chinese chemicals firm said it received a large order for lithium battery electrolyte products from Contemporary Amperex Technology, the world’s largest battery maker.

Shida Shinghwa [SHA: 603026] was trading up 3.4 percent at CNY37.52 (USD5.18) as of 1.25 p.m. in Shanghai today, after earlier gaining as much as 7.2 percent.

CATL will buy 100,000 tons of lithium battery electrolyte products from Shida Shinghwa this year, the Dongying-based supplier announced yesterday, without revealing the value of the deal.

The products’ details, such as the specifications and unit price, will be included in the order agreement and other written documents the pair will sign at a later stage, Shida Shinghwa noted.

Shida Shinghwa, which initially focused on the supply of electrolyte ingredients for lithium batteries, has extended its business to the production of downstream electrolyte products in recent years.

It completed the construction of two electrolyte product plants with a total annual production capacity of 500,000 tons in China’s eastern Dongying and central Wuhan. They are now in their trial operation phase.

China’s electrolyte products output was 540,300 tons during the first half of last year, up 23 percent from a year earlier, according to the company’s 2024 semiannual earnings report.