(Yicai Global) Sept. 8 -- Shares of Chanhen Chemical rose to a nearly four-year high today after the phosphate mining company said it will build a battery raw material plant with an affiliate of China’s third-largest battery maker Gotion High-Tech.

Chanhen's stock price [SHE: 002895] closed 10 percent up at CNY38.31 (USD5.90) today, the highest since September 2017.

The mining firm and Guoxuan Holdings Group will establish a joint venture for iron phosphate projects in southwestern China's Guizhou province, the Fuquan-headquartered company said in a statement yesterday.

The goal of the JV is to provide Guoxuan with a stable and sufficient supply of iron phosphate products with price advantages, the statement added. Chanhen will hold 60 percent of the JV's equity, and the affiliate of Gotion will have the remainder.

The pair will also prepare to set up another project company to build a plant to produce fluorine-containing battery materials, including lithium hexafluorophosphate and polyvinylidene fluoride.

Chanhen is expanding its independent production too. The firm is currently constructing a production line with an annual capacity of 100,000 tons of ferric phosphate, per the statement. At present, the company has more than 530 million tons of high-quality phosphate ore resources, it added.

Hefei-based Gotion has been in the headlines and its shares have been surging after the firm received EUR1.1 billion (USD1.3 billion) in investment from international car giant Volkswagen last year.

Editor: Emmi Laine, Xiao Yi