(Yicai Global) Sept. 1 -- Shares of China's Yongtai Technology jumped to an all-time high after the pharmaceutical ingredients maker said it will invest CNY450 million (USD69.6 million) to increase its battery chemicals output after joining hands with battery maker Contemporary Amperex Technology.

Yongtai's stock price [SHE: 002326] climbed as much as 10 percent to CNY49.28 (USD7.60) intraday, the highest since its listing in March 2010.

The latest upgrade in the Inner Mongolia Autonomous Region involves two key additives which are in short supply amid the fast-growing new energy vehicle industry, the Zhejiang province-based company said in a statement yesterday. The project should be ready by December 2022.

The firm is multiplying its output on the fly. The fine chemicals project began its third phase of trial production on Aug. 19 with 5,000 tons of vinylene carbonate and 3,000 tons of fluoroethylene carbonate per year.

Yongtai has secured a long-term client. In early August, CATL signed a contract with Yongtai to buy three types of chemicals used in batteries, including VC, for five and a half years.

Yongtai's output of vinylene carbonate should be increased by 25,000 tons per year and its production of fluoroethylene carbonate and its by-products should be hiked by 5,000 tons via the upgrade, it said yesterday.

The added capacity should increase the company's net profit by CNY614 million a year, it said. Its revenue should rise by CNY4.5 billion (USD696.1 million). The investment should thus be recovered in three and a half years.

Editor: Emmi Laine, Xiao Yi