(Yicai Global) Sept. 17 -- Shares of Chinese battery maker Farasis Energy rose after the Daimler supplier said it is planning to raise CNY5.2 billion (USD805.5 million) via private placement to build a new plant in eastern China.

Farasis Energy's stock price [SHA: 688567] jumped as much as 6 percent to CNY34.46 (USD5.30) intraday. The shares are more than a fifth up since the company got listed on Shanghai's Star Market in July 2020.

The battery maker will issue new shares to no more than 35 investors to set up a new facility in Wuhu in Anhui province, the Ganzhou-based company said in a statement yesterday.

In the first phase of the project, the investment will be CNY5.3 billion. About CNY4.6 billion of the private placement proceeds will be used to support construction. The remaining CNY600 million (USD92.9 million) will be reserved for research and development, as well as technology upgrades.

The move was expected. In late August, Farasis Energy first revealed its plan to establish its third battery production base in China besides its facilities in Jiangxi and Jiangsu provinces. The total capacity of the new plant in Wuhu should be 24 gigawatt-hours. After the first phase, half of that should be reached. The factory should be operational by September 2023.

Farasis Energy, which is based in the lithium-rich Jiangxi province in southeastern China, mainly makes electric vehicle batteries. In July 2020, German automobile giant Daimler's Mercedes-Benz said it will acquire a 3 percent stake in the Chinese firm.

Editor: Emmi Laine, Xiao Yi