(Yicai Global) June 20 -- Sunwoda Electronic’s shares rose after the Chinese producer of electric car batteries said it has agreed to set up a power battery company with auto giant Dongfeng Motor, the second such joint venture it has formed with a carmaker in the past year.

Sunwoda [SHE: 300207] ended today 1.4 percent higher at CNY31.30 (USD4.68), after earlier jumping as much as 5.4 percent.

The new company will have registered capital of CNY500 million (USD74.4 million) and will be 51 percent owned by Sunwoda, the Shenzhen-based company announced on June 17. Dongfeng and its parts and components unit Dongfeng Hongtai Holding Group will own the rest.

The JV will build a plant to make power battery cells, modules, and battery packs and supply Dongfeng, Dongfeng Hongtai, and their affiliates, Sunwoda said. It gave no details about the level of investment, the location, or construction schedule. The tie-up will help Sunwoda to further expand in the domestic market, target customers, and improve business scale, it added.

At the end of last July, the company announced that it had set up a power battery JV with Geely Automobile Holdings. Sunwoda has a 30 percent stake.

Editor: Futura Costaglione