(Yicai) Jan. 9 -- Enpower Electric’s shares rose after the Chinese supplier of power system components for electric vehicles said it plans a joint venture with EHang Holdings, a leading maker of unmanned electric vertical take-off and landing vehicles.

After surging by as much as 10 percent earlier today, Enpower Electric [SHE: 300681] finished 3.6 percent higher at CNY24.40 (USD3.33) a share in Shenzhen. The stock climbed 41 percent last year.

Enpower Electric will set up the JV with EHang's Guangzhou unit at the latter's eVTOL factory in Yunfu, the Zhuhai-based company announced late yesterday. It will have a registered capital of CNY10 million (USD1.4 million).

The JV will develop and make components for EHang's eVTOL aircraft, Enpower Electric said. It will also provide manufacturing process optimization and technical upgrade services for the Yunfu plant and other EHang production facilities.

Enpower Electric will have a 60 percent stake in the new venture, while EHang Guangzhou will own the rest, it said, without disclosing any further details.

The project will leverage their respective strengths in unmanned aerial vehicle technology and smart factory management, according to Enpower Electric. It will also deepen their ties in the UAV supply chain, enhance EHang's eVTOL aircraft market competitiveness, and bring mutual benefits through long-term resource sharing and complementary advantages.

EHang obtained the world's first production certificate for eVTOL aircraft in April. Its Yunfu factory has an annual production capacity of 600 units and delivered 216 last year. Last month, it inked a deal with major Chinese state-owned carmaker Changan Automobile to jointly develop flying cars.

In after-hours trading in New York yesterday, EHang’s shares [NASDAQ: EH] were trading 0.3 percent higher at USD14.74 each as of 7.17 p.m. local time, after closing down 3.2 percent.

Editor: Martin Kadiev