Tinci expanded its long-term supply agreement with Cornex, nearly doubling electrolyte orders as battery production capacity and demand grow.
China’s Tinci Materials Technology, one of the world’s leading producers of lithium battery electrolytes and related chemical materials, has significantly expanded its business relationship with battery manufacturer Cornex New Energy through a newly signed supplemental agreement. The revised contract nearly doubles the scale of the original long-term supply arrangement, highlighting the rapid growth of China’s energy storage and battery industries as demand for advanced battery materials continues to rise.
Under the updated agreement, Tinci will provide approximately 1.01 million tons of electrolytes and associated component chemicals to Cornex New Energy and four of its manufacturing facilities located in Hubei Province, China. Deliveries are scheduled to continue through the end of 2030. The new volume represents a substantial increase from the original contract signed in 2025, which guaranteed supply of at least 550,000 tons over the same period.
Although Tinci did not disclose the financial value of the expanded deal, industry estimates suggest that the contract could generate significant revenue for the company. Based on current market prices for lithium iron phosphate (LFP) battery electrolytes, which are around CNY27,000 per ton, the total value of the revised agreement could reach approximately CNY27.3 billion (USD4 billion). This would represent an increase of roughly CNY12.4 billion compared with the estimated value of the original supply agreement, underscoring the strategic importance of the partnership.
The relationship between Tinci and Cornex began to deepen last year when the companies signed their first long-term electrolyte supply agreement. That deal covered Cornex and three of its production facilities. The latest supplemental contract expands the partnership further by incorporating Cornex’s newly developed battery manufacturing plant in Xiangyang, Hubei Province.
The Xiangyang facility is expected to play a major role in Cornex’s future growth strategy. Designed as the company’s fourth lithium iron phosphate battery production base, the project will focus on manufacturing both large-scale energy storage batteries and ultra-fast-charging power batteries. During its first development phase, the facility is planned to achieve annual production capacity of 50 gigawatt-hours (GWh) for energy storage batteries and an additional 20 GWh for high-performance power batteries.
Construction of the Xiangyang plant began in September of last year and has progressed steadily. According to project plans, commercial operations are expected to commence in the second half of this year. Once the first phase reaches full operational capacity, Cornex’s total effective annual battery production capacity is projected to increase dramatically, rising from approximately 110 GWh to 180 GWh. This expansion reflects the growing demand for energy storage solutions and electric vehicle batteries across both domestic and international markets.
For Tinci, the agreement further strengthens its position as the global leader in lithium battery electrolyte supply. The company has experienced strong growth in recent years, driven by increasing adoption of electric vehicles, renewable energy storage systems, and advanced battery technologies. According to its latest financial report, Tinci’s electrolyte sales exceeded 720,000 tons last year, representing a 44 percent increase compared with the previous year.
The company is also accelerating its international expansion efforts. Tinci’s original equipment manufacturing partners in the United States and Germany have already begun supplying local customers, helping the company establish a stronger presence in overseas markets. In addition, Tinci is investing in new production facilities in the United States and Morocco to support future global demand and improve supply chain resilience.
The expanded Cornex agreement demonstrates both companies’ confidence in the long-term growth prospects of the lithium battery sector. As energy storage deployment, electric vehicle adoption, and clean energy investments continue to increase worldwide, demand for battery materials such as electrolytes is expected to remain strong. The strengthened partnership positions Tinci to benefit from this trend while ensuring Cornex has access to the critical materials needed to support its ambitious production expansion plans over the coming years.
