Recently, the electrolyte market has been buzzing. On June 7 and 8, CATL announced two long-term electrolyte procurement agreements: from 2026 to 2028, it will purchase 300,000 tons from Xinzhoubang and 470,000 tons from Yongtai Technology, totaling 770,000 tons. Based on an estimated 1,000 tons of electrolyte per GWh of lithium batteries, this commitment secures capacity equivalent to 770 GWh—far exceeding CATL’s projected full-year shipments of 661 GWh in 2025.

But what’s truly intriguing isn’t how much CATL has acquired, but rather whom it hasn’t.

Two long-term contracts have shaken the entire market; a single “absence” has sent ripples through the entire electrolyte supply chain. Following the release of the two announcements, attention from the capital markets—and indeed the entire industry chain—has turned squarely toward the former largest supplier, Tianci Materials.

01 A Two-Year Turnaround

The “unbundling” between CATL and Tianci Materials has not happened overnight.

The parties’ previous long-term supply agreement was fully executed as of December 31, 2025, but… As of now, there have been no reports of the renewal of any large-scale new agreements. 。

Looking back at the period from 2021 to 2023, Tianci Materials’ revenue from CATL once accounted for as much as 57%-58% , which can be regarded as the No. 1 “moat” in CATL’s electrolyte portfolio. However, last year saw a sharp turnaround—CATL’s revenue contribution from Tianci has already fallen to 45.6% 。

At that time, Tianci Materials still maintained a fully integrated value chain, spanning from spodumene processing to lithium hexafluorophosphate and ultimately to electrolyte production, with electrolyte accounting for a significant portion of the cost of power batteries. 40%-50% It seemed impervious to all challenges. Yet in just over half a year, CATL opted to “pivot.”

02 The Former “Guest of Honor”

To fully understand this seismic shift, we must first examine the rapid rise of new entrants. Yongtai Technology, which has secured a major order for 470,000 tons, has built a vertically integrated industrial chain spanning lithium‑salt raw materials, lithium salts, additives, and electrolytes. 。

In addition, the company announced in March this year that it plans to invest in and build a facility in Binhai, Jiangsu, with an annual production capacity of… 200,000-ton lithium battery electrolyte project Upon completion, Yongtai Technology’s total electrolyte production capacity will reach 350,000 tons per year. This not only underscores its robust capability to fulfill large-scale orders but also signals that Yongtai is firmly establishing itself in the new‑energy materials sector, continuously strengthening its cost‑efficiency at scale and supply‑chain stability. For CATL, partnering with Yongtai serves primarily as an additional safeguard to secure a reliable supply of production capacity.

As for Xinzhoubang, it employs a year-by-year ramp-up supply strategy—50,000 tons in 2026, 100,000 tons in 2027, and 150,000 tons in 2028—with the buyer and supplier also agreeing to substantial fluctuations in volume. According to estimates, under current market prices, this 300,000-ton order is worth approximately… 9 billion yuan Meanwhile, Xinzhoubang also plans to build a new facility at its Yichang base. 60,000 tons Lithium hexafluorophosphate production capacity, along with the advancement of a multi‑thousand‑ton‑per‑year LiFSI expansion and upgrade project. In fact, in recent years, Xinzhoubang has quietly completed technological upgrades to its lithium hexafluorophosphate production lines, optimizing its cost structure—this is a key reason why CATL has chosen to partner with it for three years.

03 What is Tianci doing?

Naturally, that former player who was “knocked out” refused to remain silent.

Although it has lost its top spot to CATL, Tianci Materials is not sitting idly by. The company swiftly moved to fill significant capacity gaps across a diversified customer base: starting in the second half of 2025, Ruipu Lanjun, Gotion High‑Tech, CALB, and Chunan New Energy successively signed long-term electrolyte supply contracts with Tianci Materials. Among these, Chunan New Energy’s order stood out most prominently—initially contracted for no less than 550,000 tons beginning July 2025, it was subsequently supplemented by an addendum in June 2026, raising the total supply volume to “ No less than 1.01 million tons ”, with the validity period extended all the way to the end of 2030. Based on the current market price of approximately RMB 30,000 per ton, the total value of this order has already exceeded 30 billion yuan 。

As of now, Tianci Materials The total electrolyte production capacity is approximately 850,000 tons, and it is operating at near‑full capacity. By the end of 2026, its LiFSI (lithium bis(fluorosulfonyl)imide) production capacity is expected to reach 90,000 tons, placing it among the industry leaders. Meanwhile, the company is accelerating its overseas capacity expansion: construction has commenced at its U.S. plant, and the Morocco project is progressing in parallel.

However, Tianci Materials is also deliberately managing the pace, temporarily holding back capital expenditures on certain external expansion projects. For instance, in April this year, Ruitai New Materials halted construction of the remaining production lines for its 4,000‑ton‑per‑year electrolyte‑new‑material project, precisely to avoid a repeat of the industry’s previous cycle—characterized by overcapacity, sharp price declines, and a shift from profitability to losses.

04 Prices Surge from the Bottom

Looking back at this round of market reshuffling, the primary driver has been the sharp rebound in electrolyte prices. In mid-2025, the average price of electrolyte once fell to a historic low of RMB 17,500 per ton. However, by 2026, driven by tightening supply and demand for the raw material lithium hexafluorophosphate and sustained strong downstream demand from the new-energy sector, electrolyte prices had rebounded sharply to… 30,000 yuan per ton Around, with an increase of over 70%.

Superposition Lithium hexafluorophosphate (6F) This core solute will remain at … throughout the entire year 2026. “Tight balance” state Moreover, industry forecasts predicting shortages in the second half of this year have further intensified downstream battery manufacturers’ scramble for raw materials. As the market has come to recognize that this year’s 6F production capacity will fall short of meeting the surge in lithium‑battery demand, it is hardly surprising that companies are locking in raw‑material supplies three years in advance.

According to forecasts by third-party institutions, global demand for lithium-ion battery electrolytes is expected to reach approximately… in 2026. 3.67 million tons , by 2030 it will rise to 5.6 million tons This means that, over the next few years, electrolyte prices and volumes are likely to continue rising in tandem, and the profit margins of leading electrolyte manufacturers will probably keep expanding. Meanwhile, judging from the first-quarter 2026 earnings reports, the net profits attributable to parent company shareholders of Tianci Materials, Xinzhoubang, and Yongtai Technology surged year-on-year by… 1005.75%, 109.02%, 889.50% — The rebound in performance across the major electrolyte businesses has reached a tipping point, triggering an explosive surge.

05 Sodium-ion batteries: the second growth curve for the electrolyte industry

As the landscape of lithium-ion battery electrolytes is being reshaped, Sodium-ion battery electrolytes have become a key driver of the industry’s second growth curve.

Wu Kai, Chief Scientist at CATL, stated unequivocally that a series of sodium-ion battery products will enter mass production by 2026. Meanwhile, Lin Jiubiao, CATL’s CTO for energy storage, revealed that the company will deliver its first batch of sodium‑ion battery energy storage systems in September 2026. Achieve “GWh‑level” shipments for the full year. Previously, in April this year, CATL also signed an agreement with Haibosichuang. 3 years, 60 GWh of sodium-ion batteries Energy Storage Strategic Cooperation Agreement.

In fact, sodium-ion batteries have already moved from the laboratory stage to the cusp of a commercial boom. According to data from Qidian Research Institute, In 2025, global shipments of sodium-ion battery electrolytes will total only 11,000 tons, but are projected to reach 1.577 million tons by 2030. with a compound annual growth rate as high as 160%. Tianci Materials has long been proactively developing sodium-ion battery electrolytes and sodium hexafluorophosphate; Duofluor also has already achieved commercial-scale production of sodium hexafluorophosphate.

CATL’s pace in advancing sodium-ion battery technology is also prompting lithium‑ion electrolyte manufacturers to shift their formulations and solute chemistries toward sodium‑ion applications. Given the high degree of compatibility between sodium‑ion and lithium‑ion battery electrolytes in terms of formulation design and manufacturing processes, existing lithium‑ion electrolyte production lines can be adapted with minimal modifications to meet sodium‑ion demand—endowing electrolyte producers with a competitive edge in the emerging sodium‑ion market. Plug and Play The early‑stage first-mover advantage of the “...” model.

06 Written at the End

Ning Wang’s two long-term contracts are not simply a “change of supplier.” Rather, it is a meticulous calculation of the depth and balance of supply-chain integration.

For Yongtai Technology and Xinzhoubang, this marks a pivotal step in elevating their position within the industry chain; for Tianci Materials, losing its single largest customer has been offset by broader market opportunities. And for the entire electrolyte sector, this round of consolidation signals—

Ningwang is transitioning in the electrolyte field from “tied‑in dependence” to “…”. Cross-Check and Balance ”, and Sodium-ion battery electrolytes may well become the next game-changing card that reshapes the competitive landscape.

The real show has only just begun.