(Yicai Global) Sept. 21 -- Sunwoda Electronic’s shares rose after the Chinese battery maker set out plans to invest CNY21.3 billion (USD3 billion) building a joint venture plant with the government of Yiwu in Zhejiang province less than one week after partnering with Dongfeng Motor on a similar project.

Sunwoda’s stock [SHE: 300207] finished 1.7 percent higher at CNY25.55 (USD3.62) today, after gaining as much as 2.7 percent in the late morning.

The new joint venture will have an annual production capacity of 50 gigawatt-hours, and it will make batteries for electric cars and energy storage projects, Shenzhen-based Sunwoda said late yesterday. The JV will be 80 percent owned by Sunwoda Electric Vehicle Battery.

The plant will be built in two phases. The first will have a 30 GWh a-year capacity for battery cells, modules, packs, and systems, with an investment of around CNY12.8 billion. The second phase will cost about CNY8.5 billion (USD1.2 billion).

Sunwoda did not give a breakdown on production figures for power batteries and energy storage batteries, nor did it provide a construction schedule.

A week ago Sunwoda announced details of a planned CNY12 power battery plant in Yichang, Hubei province to be built in partnership with Dongfeng Motor. Sunwoda will have a 51 percent stake in that project, while the auto giant and its car parts unit will own the rest.

Rapid growth in new energy applications is driving Chinese battery makers to redouble their efforts to expand capacity. Before yesterday’s announcement, Sunwoda EV Battery had already unveiled plans for three new plants this year alone, with an additional 80 GWh of annual capacity. They will be built in Yichang, Zhuhai in Guangdong province, and Shifang in Sichuan province.

Sunwoda EV Battery has raised more than CNY9 billion from investors, including potential clients Li Auto, SAIC Motor, and GAC Group, through two financing rounds this year to fund its capacity expansion plans.

Editor: Futura Costaglione