(Yicai Global) Aug. 12 -- Shares of Jinlongyu Group rose to a nine-month high after the Chinese wire and cable maker said its unit will invest up to CNY300 million (USD46.3 million) in the next five years to develop extremely efficient batteries with a team led by a professor at Chongqing University.

Jinlongyu's stock price [SHE: 002882] surged by the daily limit of 10 percent to CNY10.13 (USD1.60).

Huizhou-based Jinlongyu Electric Cable Industry Development and Jintianyi New Energy Technology have signed a framework agreement to jointly develop solid-state batteries and promote production, the Shenzhen-headquartered cable products maker said in a statement yesterday.

Currently, few firms can mass-produce solid electrolyte materials as the technology that offers higher energy density and safety is still under development, according to the statement.

The pair will first focus on pilot production, including solid electrolytes. Then they will set up a joint venture to begin manufacturing. Jinlongyu will own 60 percent of the JV's equity and Jintianyi, founded by material science and engineering professor Li Xinlu, will have the remainder.

Editor: Emmi Laine, Xiao Yi