(Yicai) Nov. 27 -- Enpack Packaging’s shares surged by their daily trading limit after the Chinese drinks can maker said its subsidiary had received a large order from a South Korean manufacturer of lithium-ion batteries, materials, and equipment.

Enpack Packaging [SHE: 002846] soared 10 percent to close at CNY9.89 (USD1.36) a share in Shenzhen today. The stock is down about 10 percent since the end of last year.

The unit’s plant in China's eastern Jiangsu province will be the sole supplier of composite battery current collectors for U&S Energy, its Shantou-based parent company announced late yesterday, without disclosing any financial figures.

Current collectors in lithium batteries mainly use copper and aluminum foil, while composite current collectors are made of metal foil and polymer film materials. Compared with the metal foil type, the composite variety can boost safety and energy density of lithium batteries, reducing their weight and production costs.

The unit will customize and produce 2 million square meters of composite aluminum foil and 1 million sqm of composite copper foil for U&S Energy next year, with the amount of foil bought expected to gradually increase between 2026 and 2029, according to the agreement.

Enpack Packaging only recently entered the business of composite current collectors for lithium-ion batteries, with related revenue reaching CNY178,000 (USD24,500) last year, accounting for just 0.01 percent of its total income, according to the firm’s annual earnings report. 

The Jiangsu plant, which has an annual production capacity of 100 million sqm of composite aluminum foil and 500 million sqm of composite copper foil, is still under construction, with only some of its production lines in operation, according to Enpack Packaging.

Editor: Martin Kadiev