(Yicai) Jan. 9 -- SLAC Precision Equipment soared after the Chinese supplier of automated equipment for making easy-open cans said a US unit will start producing lithium battery shells, a line that is the fastest-growing contributor to the firm's revenue.

SLAC [SHE: 300382] closed 14 percent up at CNY11.33 (USD1.55) a share in Shenzhen today, after soaring by as much as 19.7 percent in morning trading.

SLAC's OKL Engineering, a Cincinnati-based manufacturing subsidiary, is preparing to make lithium battery housing to better serve local customers, its parent company said yesterday.

OKL will later introduce strategic investors to its battery shell business, as local demand for the product is rising, SLAC said. Together, they will establish a joint venture to invest in building and running factories in the United States for rectangular and cylindrical battery housings.

The project will support the expansion of SLAC’s battery structural components business globally, allowing it to better serve overseas clients while shielding it from the risks of falling product prices due to intense competition in the Chinese market, the Suzhou-based firm noted.

Automated production lines for easy-open cans accounted for more than 56 percent of SLAC’s revenue in 2023, while battery shells have been the fastest-growing contributor to income in recent years, climbing to 40 percent that year.

The company’s battery housing manufacturing process, developed based on its aluminum can production technology, is unique. Its major clients include US electric vehicle maker Tesla and Chinese battery giants Contemporary Amperex Technology, Ganfeng Lithium, and Eve Energy.

Editor: Futura Costaglione