(Yicai) Aug. 30 -- China's Yunnan Energy New Materials said its factory in Hungary, which recently started partial operations, has received a long-term order for lithium battery separators from a large overseas battery supplier.

Yunnan Energy's unit Shanghai Energy New Materials Technology inked a deal with a world-renowned large lithium battery manufacturer yesterday, the Yuxi-based supplier said late on the same day. The Hungarian plant will provide lithium battery separators of at least 960 million square meters between 2025 and 2033, it added.

The supply amount may fluctuate up or down 10 percent from the initial order since it aims to ensure the buyer's raw material supply for overseas battery plants, Yunnan Energy pointed out, without disclosing further details.

The order will help strengthen the long-term and stable cooperation with the customer and positively impact Yunnan Energy's performance within the contract period, according to the company.

Yunnan Energy is still building its lithium battery separator plant in Debrecen, Hungary, with a planned annual capacity of 400 million sqm and a total investment of EUR340 million (USD369.3 million). The first production line began trial operations early last month.

In May 2022, the factory landed an order worth EUR655 million to supply lithium battery separators between next year and 2030 to France's Automotive Cells, a power battery maker backed by several European auto giants.

Yunnan Energy has successfully joined the supply chain of leading global battery manufacturers. Its foreign customers include Panasonic Holdings, Samsung Electronics, LG Chem, and General Motors-backed Ultium Cells, while Contemporary Amperex Technology, BYD, and Volkswagen-backed Gotion Hi-Tech are among its domestic clients.

Shares of Yunnan Energy [SHE: 002812] fell 0.5 percent to CNY67.76 (USD9.29) apiece as of 2.10 p.m. today, after earlier trading up 0.9 percent. Worries about overcapacity in the industry have led the stock price to drop about 80 percent from a record high of CNY319 (USD43.8) in September 2021 to near its lowest point since July 2020.

Editor: Martin Kadiev