(Yicai) Nov. 17 -- Shares of Ronbay New Energy Technology surged by the exchange-imposed daily trading limit after the Chinese firm became the leading supplier of sodium-ion battery cathode materials to Contemporary Amperex Technology, the world's largest battery maker.

Ronbay [SHA: 688005] was trading up 20 percent at CNY35.40 (USD4.98) as of 10.25 a.m. in Shanghai today.

Ronbay will provide CATL with more than 60 percent of its annual procurement volume of cathode materials for sodium-ion batteries over the next four years, the Ningbo-based supplier announced yesterday, citing a long-term cooperation agreement.

If CATL's annual procurement volume exceeds 500,000 tons, the client will enjoy a more preferential procurement price for that year, Ronbay noted, adding that the pair will also carry out comprehensive technical cooperation in sodium-ion battery products and supply chain development.

"Becoming CATL's top supplier of sodium-ion battery cathode materials shows that the company's product development capabilities and market position have been recognized by a leading international customer, with far-reaching market demonstration effects," Ronbay pointed out. "This also means that sodium-ion battery cathode materials and products have entered large-scale application."

CATL unveiled its new sodium-ion battery brand Naxtra at its Tech Day event in Shanghai in April. Naxtra's product lineup includes a battery for passenger vehicles, which is scheduled for mass production by the end of this year, and a 24-volt start-stop integrated battery for heavy-duty trucks, which kicked off mass production in June.

Sodium-ion batteries are very similar to lithium-ion batteries but have a number of advantages, such as lower costs as sodium salts are the main electrode, battery safety, and use in low-temperature environments, although their energy storage capacity is not as good as that of lithium-ion batteries.

Sodium-ion battery and related raw material projects are emerging as a new investment hotspot in the Chinese capital market as the sector is entering mass production and application stages recently.

Editor: Futura Costaglione