On June 26, Yongtai Technology (002326) publicly announced that its wholly-owned subsidiary, Zhejiang Yongtai New Energy Materials Co., Ltd., has formally signed an "Electrolyte Raw Material Cooperation Agreement" with Contemporary Amperex Technology Co., Limited (CATL). The agreement establishes cooperation between the two parties regarding the purchase and sale of the electrolyte additive vinylene carbonate (VC).
The agreement is effective from June 1, 2026, and concludes on December 31, 2029. In addition to supplying the VC required for supporting electrolyte production, Yongtai New Energy will provide dedicated supply to CATL: planned deliveries are 20,000 tons for 2027 (with a permissible ±5% variance), 30,000 tons for 2028 (with a permissible ±10% variance), and 40,000 tons for 2029 (with a permissible ±12% variance). The cumulative supply volume over the three-year period amounts to approximately 90,000 tons.
Yongtai Technology stated that the successful fulfillment of this agreement is expected to positively impact the company's operating results from 2027 to 2029. However, the specific unit prices and execution volumes will be subject to confirmation by subsequent actual purchase orders.
Deep Strategic Partnership with CATL
The collaboration between Yongtai Technology and CATL has a long history. As early as 2021, the two parties reached an agreement for Yongtai to supply lithium hexafluorophosphate, lithium bis(fluorosulfonyl)imide, and VC products to CATL during the period from July 31, 2021, to December 31, 2026. In 2024, their cooperation expanded further into the field of electrolyte purchase and sales.
In early June this year, Yongtai Technology secured another major electrolyte supply order from CATL, totaling 470,000 tons, with the cooperation period spanning 2026 to 2028. The signing of this long-term VC supply agreement marks a new level in the strategic partnership between the two companies within the lithium battery materials sector.
From an industry perspective, the electrolyte segment has experienced a wave of "order locking" over the past year. According to incomplete statistics, leading manufacturers including Tinci Materials, Capchem, and Yongtai Technology have collectively secured long-term orders exceeding 4 million tons from downstream battery manufacturers.
Building a Vertically Integrated Lithium Battery Materials Business
Yongtai Technology was established in October 1999, is headquartered in Taizhou, Zhejiang Province, and listed on the Shenzhen Stock Exchange in December 2009. The company is a manufacturer of fluorine-based pharmaceuticals, crop protection products, and new energy materials, driven by fluorine technology, innovation, and intelligent manufacturing. It possesses a vertically integrated industrial chain and a flexible, comprehensive production platform.
After over two decades of development, the company has become a globally leading manufacturer of fluorine-based fine chemicals and is one of the few enterprises in the industry that spans both inorganic and organic fluorine chemical sectors.
Within its lithium battery materials segment, Yongtai Technology has established a vertically integrated capacity layout covering lithium salt raw materials, lithium salts, additives, and electrolytes. Its core products encompass key lithium battery materials such as lithium hexafluorophosphate, vinylene carbonate (VC), lithium bis(fluorosulfonyl)imide (LiFSI), fluoroethylene carbonate (FEC), and electrolytes. The company has multiple production bases in locations including Zhejiang, Inner Mongolia, Fujian, and Guangdong.
Total VC Capacity Targets 80,000 Tons Annually
To support the fulfillment of the long-term order, Yongtai Technology has recently intensified its capacity expansion efforts. On June 23, the company announced plans to invest 800 million yuan to construct an annual 50,000-ton VC and supporting project in Inner Mongolia, with the construction period set from August 1, 2026, to the end of 2027.
Currently, the company's operational VC capacity stands at 10,000 tons per year, with an additional 20,000 tons per year under construction. Upon the completion of this newly announced capacity, assuming all projects reach full production as planned, the company's total VC capacity will surge to 80,000 tons per year.
In the lithium battery materials segment, Yongtai Technology's new capacity plans for 2026 include a technical renovation and expansion project for lithium hexafluorophosphate at Yongtai High-tech, aiming to increase existing capacity to 50,000 tons per year; a 200,000-ton-per-year electrolyte construction project in Yancheng Yongtai; and a 5,000-ton-per-year new lithium supplement agent construction project at Yongtai High-tech. Leveraging its synergistic layout across lithium salt raw materials, lithium salts, electrolyte additives, and electrolytes, the company is steadily building an industrial closed loop characterized by self-supply of upstream raw materials and stable, locked-in orders from downstream customers.
First-Quarter Net Profit Skyrockets Nearly Ninefold
Regarding financial performance, in 2025, Yongtai Technology achieved operating revenue of 5.214 billion yuan, representing a year-on-year increase of 13.60%. Its net profit attributable to shareholders was a loss of 46.1006 million yuan, a significant reduction of 90.36% compared to the loss of 478 million yuan in the same period last year. The net cash flow from operating activities at the period-end was -72.0313 million yuan, a substantial improvement from -111 million yuan in the same period last year.
In the first quarter of 2026, the company achieved operating revenue of 1.693 billion yuan, a year-on-year increase of 59.70%. Net profit attributable to shareholders reached 105 million yuan, a dramatic surge of 889.50% year-on-year. Net cash flow from operating activities was 108 million yuan, a significant increase of 679.25% year-on-year.
The company attributed the substantial performance growth primarily to simultaneous increases in both volume and price for core products within its lithium battery materials segment during the reporting period, leading to a significant expansion in the segment's profit scale.
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