(Yicai Global) Oct. 11 -- Shares in Guangdong Jiayuan Technology soared as much as 6.2 percent today after the Chinese copper foil producer said it will supply battery giant Contemporary Amperex Technology with at least 20,000 tons of ultra-thin copper foil next year.

Jiayuan Tech’s share price [SHA:688388] closed up 3.7 percent at CNY51.20 (USD7). Earlier in the day it hit CNY52.39.

Jiayuan Tech will provide CATL with the 4.5 and 5-micron extremely-fine copper foil used in lithium-ion batteries, the company said yesterday, citing the memorandum of understanding inked by the pair. CATL is a big client of Jiayuan Tech, accounting more than half of its orders last year, according to Jiayuan Tech’s latest annual report.

No pricing was given, nor was there an estimate of future business revenue. Specifics regarding the execution of the deal still need to be confirmed, it added.

Jiayuan Tech, which produced 28,000 tons of copper foil last year, has been hiking capacity in the past few years to meet surging demand from its electric car battery and printed circuit board clients. A number of new production lines have recently come online, lifting its annual output to 62,000 tons as of this month.

The Meizhou, southern Guangdong province-based firm is also building a CNY1.2 billion (USD167 million) plant with an annual output of 15,000 tons of copper foil in Fu’an, a city near Ningde in southeastern Fujian province where CATL is based. The factory has just started partial operations and should reach full capacity by the end of next year.

Last December Jiayuan Tech said it will build another facility with an annual output of 100,000 tons of copper foil. CATL will be an investor in this project and is expected to take a 20 percent stake.

Editor: Kim Taylor