Bloomberg reported over the weekend that electric vehicle maker, Tesla (NASDAQ: TSLA) has signed a new long-term deal with two of its existing Chinese battery suppliers to secure supplies through the middle of this decade.

Zhejiang Huayou Cobalt Co. and CNGR Advanced Material Co. signed pricing agreements with the Tesla for supplies until the middle of this decade, according to separate stock-exchange statements from the companies. The deals are for ternary precursor materials — chemicals that are key to storing energy in lithium-ion batteries.

The automaker is looking to exit 2022 with a production rate of about 2 million electric vehicles a year – twice what its American competitors are hoping to hit in three years.

From there, Tesla aims to grow at a rate of about 50% per year, and that will require a massive amount of battery materials.

Huayou Cobalt will supply the materials to Tesla from July 1, 2022 to the end of 2025. CNGR will supply the EV automaker between 2023 and 2025.

Shares of Huayou Cobalt and CNGR jumped more than 9% each on Monday morning.

By Michael Elkins