(Yicai Global) Jan. 30 -- Shares in Farasis Energy soared as much as 5.9 percent today after the Chinese electric car battery maker said it will build another factory in Guangzhou, southern Guangdong province, to meet surging demand from new energy vehicle makers.

Farasis Energy’s share price [SHA:688567] was trading up 2.3 percent at CNY26.36 (USD3.90) as of 11.30 a.m. China time today. Earlier in the day it hit CNY27.28.

The facility, which will be located in the Guangzhou Economic and Technological Development District, will produce 30 gigawatt hours of lithium iron phosphate batteries and ternary lithium batteries a year, Farasis Energy, which is mainly known for its ternary lithium batteries, said yesterday.

This will be the firm’s fourth production base in China. By situating it in Guangzhou, Farasis Energy will be able to better supply major clients in the area and drum up more business, said the company, which is based in Ganzhou in lithium-rich southeastern Jiangxi province.

The project will be financed by various methods including equity financing, it added, citing the deal penned with the economic and technological development district’s management. No details about the yearly output of each type of battery, the cost of the project nor the construction timetable were given.

Farasis Energy, in which German automobile giant Daimler owns a 3 percent stake, currently operates two factories, one in Ganzhou and another in Zhenjiang, eastern Jiangsu province. It also has another plant under construction in Wuhu, eastern Anhui province, costing CNY5.3 billion (USD781.2 million) and which will have an annual output of 24 GWh.

Editor: Kim Taylor