(Yicai Global) Dec. 29 -- Shares of Haili Chemical Industry jumped to a more than six-year high after the Chinese seller of pesticides said it will enter the battery raw materials industry via a related-party transaction.

Haili Chemical's stock price [SHA: 600731] soared as much as 10 percent to CNY10.51 (USD1.70) intraday, the highest since the second quarter of 2015.

The chemical manufacturer will invest CNY97.8 million (USD15.4 million) to purchase all of Haili Lithium Battery Technology's equity, the Hunan province-based buyer said in a statement yesterday. The pair share the same controlling shareholder, Haili High Tech Industry Group, according to corporate information platform Tianyancha.

Haili Lithium Battery is one of China's largest lithium manganate suppliers, according to the statement. The firm's current annual capacity of lithium battery materials is 5,000 tons, and 80 percent of that is lithium manganate.

Editor: Emmi Laine, Xiao Yi