(Yicai Global) March 11 -- Shares of Eve Energy rose after the Chinese lithium battery maker said it will spend CNY3.9 billion (USD600.2 million) to increase the output of its new project announced less than a month ago to meet new energy vehicle makers' demand.

Eve Energy's stock price [SHE: 300014] gained as much as 4.6 percent to CNY82.16 (USD12.60) today after which the shares were 2.8 percent up in the afternoon.

The firm, which counts Daimler, Hyundai Motor, and Xpeng Motors as some of its clients, will boost the production capacity of prismatic lithium iron phosphate batteries in Huizhou, the Guangdong province-based firm said in a statement yesterday. That should take 18 months.

On Feb. 19, the maker of lithium iron phosphate and ternary lithium batteries said it will invest CNY1 billion to build the passenger car lithium battery plant in its home town. It also said it will spend up to CNY2.6 billion to create a production line to make hybrid vehicle battery management systems.

The expansion should enhance Eve Energy's competitiveness and its market share while meeting the needs of internationally renowned carmakers, its latest statement added. The firm didn't reveal the planned output but said that the project requires 11.7 hectares of land, almost double that of the first phase.

Editor: Emmi Laine, Xiao Yi