XTC New Energy Materials, a prominent supplier to BYD and Contemporary Amperex Technology, has recently inked a three-year agreement with Zhejiang Power New Energy. This deal ensures a long-term supply of raw materials crucial for manufacturing battery cathodes.
Strategic Partnership for Material Supply
Under this agreement, XTC, a subsidiary of state-owned Xiamen Tungsten, will purchase up to 80,000 tons of precursor materials over the next three years. The deal, whose financial details remain undisclosed, includes a minimum purchase of 10,000 tons of precursors for sodium-ion batteries, with the remainder being materials for ternary lithium batteries.
Expanding Capacities and Opportunities
Zhejiang Power, primarily known for producing precursor materials for ternary lithium batteries, also manufactures materials for sodium batteries, which are safer and less energy-dense. The agreement opens the possibility of expanding the deal if Zhejiang Power can increase its production capacity.
Benefits for XTC and Zhejiang Power
This partnership is set to provide XTC with a stable supply of raw materials, a critical factor for its business continuity and growth. For Zhejiang Power, the deal is an opportunity to enhance the quality of its products, expand its export channels, and significantly grow its sodium battery business.
XTC’s Global Expansion
In addition to this deal, XTC is extending its reach globally. In September, it announced a collaboration with a subsidiary of the French nuclear engineering company Orano to establish a joint-venture plant in northern France’s Dunkirk. This facility, with an annual production capacity of 40,000 tons of cathode materials for ternary lithium batteries, is expected to complete its first phase by the fourth quarter of 2025.
XTC’s Market Impact
In the previous year, XTC’s sales of ternary lithium battery materials surged by 71 percent to 46,400 tons, accounting for nearly half of its total revenue. The company’s client portfolio includes industry giants like CALB Group, Panasonic, and Gotion High-Tech.