(Yicai Global) March 30 -- Shares of Yunnan Energy New Material surged after the Chinese battery separator giant announced a CNY4.5 billion (USD708 million) plan to build a lithium-ion battery isolating membrane plant.

Yunnan Energy’s stock price [SHE: 002812] ended 6.1 percent higher in Shenzhen today at CNY222.36 (USD35.02).

The new plant will have an annual capacity of 1.6 billion square meters of lithium-ion battery isolating membrane, the Yuxi-based firm said in a statement late yesterday. Located in Yuxi, in Yunnan province, the plant will be built in two phases, to be completed within two to three years.

The first stage is expected to cost CNY2.4 billion and start production before December 2024. The second phase, with an investment of CNY2.1 billion, will begin construction at an appropriate time based on market conditions.

The plan is part of a large power battery project, the firm said last month. It involves total investment of CNY51.7 billion (USD8.1 billion) from Yunnan Energy, Eve Energy, Huayou Holding Group, Yunnan Yuntianhua, and the Yuxi city government.

The project will cover lithium mining and processing, power battery production and supporting lithium battery diaphragm, anode and cathode materials, and copper foil for battery use segments.

The partners have pledged to invest CNY18.1 billion in the project’s first phase, scheduled to start production by the end of next year, according to Yunnan Energy. The CNY33.6 billion-second stage is expected to be completed by the end of 2025. There is also a plan to increase the investment and include a third stage, to be finished by the end of 2030.

The other three companies have not released any statement regarding the project yet.

Editor: Futura Costaglione