Lopal Tech’s shares surged by their daily trading limit after the leading Chinese battery materials supplier said it had received an order worth up to CNY5 billion (USD691 million) from Cornex New Energy.

Lopal [SHA: 603906] closed 10 percent higher at CNY11.20 (USD1.55) a share today. The Shanghai Composite Index rose 0.8 percent.

Lopal will supply 150,000 tons of lithium-iron phosphate cathode materials to Cornex, a Chinese innovative new energy company, starting this year through 2029, the Nanjing-based firm said late on May 9, citing a deal it inked with the client and three of its production bases.

Based on Lopal's self-sourcing model for raw lithium carbonate, the order is expected to bring CNY5 billion of revenue, the company said. But if Cornex provides part of the lithium carbonate, actual turnover will be lower, so pricing will be negotiated for each month’s supply, it added.

Compared with the ternary lithium batteries widely used by international electric vehicle makers, LFP batteries are cheaper to produce, safer, and more environmentally friendly.

Over the past year, Lopal has landed orders for LFP cathode materials from domestic and foreign battery giants, including Contemporary Amperex Technology, LG Energy Solution, and BlueOval. Its Indonesian factory began bulk shipments this year.

Lopal's LFP cathode materials production surged 56 percent to 184,700 tons last year from the previous year, with sales soaring 65 percent to 178,300 tons, according to its annual financial report. Revenue from the segment topped CNY5.7 billion, accounting for 75 percent of the total.