(Yicai Global) June 17 -- Shares of Dingsheng New Energy Materials jumped after the Chinese supplier of aluminum products to BYD and Contemporary Amperex Technology said Svolt Energy Technology has placed a large order for aluminum foil for lithium batteries.

Dingsheng [SHA: 603876] ended today 4.5 percent higher at CNY38.15 (USD5.69), after earlier jumping as much as 6 percent. The stock has climbed over 60 percent in the past 12 months.

The company penned a supply agreement with Svolt, a battery unit of Chinese automaker Great Wall Motor, for about 80,800 tons of aluminum foil until 2025, Nanjing-based Dingsheng said in a statement yesterday. Prices will be based on actual orders and supply.

Dingsheng, whose clients also include LG Energy Solution and Gotion High-Tech, has been shifting focus toward the lucrative field of new energy vehicles. Last year, its output of aluminum foil used in batteries more than doubled to 57,800 tons, according to its annual earnings report. The segment recorded a nearly threefold jump in revenue to CNY1.8 billion (USD268.7 million).

The trend goes wider. China's total production of aluminum foil for batteries doubled in 2021 to 140,000 tons, according to information provider Antaike.

Editor: Emmi Laine, Xiao Yi