(Yicai Global) Nov. 11 -- Shares in Do-Fluoride New Materials rose today after the Chinese manufacturer of inorganic fluoride products said it has secured a three-year purchase contract worth at least CNY1 billion (USD156 million) from South Korean new energy vehicle battery maker Enchem.

Do-Fluoride’s stock price [SHE:002407] closed up 1.53 percent at CNY52.28 (USD8.16) per share.

Do-Fluoride will supply Enchem with lithium hexafluorophosphate, a key ingredient of electrolyte materials commonly used in lithium-ion batteries, from January next year to December 2024, the Jiaozuo, central Henan province-based firm said. No amounts were given.

Do-Fluoride will deliver the products to Enchem’s plants in South Korea, Poland and China’s Zhangjiagang city and will settle all insurance, freight and other costs incurred before the products arrive at their destination.

Do-Fluoride, which last year only could produce 8,000 tons of lithium hexafluorophosphate, is rapidly expanding its production capacity to meet surging demand. It is building a plant in Henan province with an output of 100,000 tons a year and another in northern Shanxi province with an annual output of 20,000 tons.

In the first half, China produced 21,320 tons of lithium hexafluorophosphate, nearly the same amount as it did in 2019 and more than double from the same period last year, according to Shanghai Xinluo Network Technology.

Editor: Kim Taylor