(Yicai Global) Jan. 21 -- Shares of Desay Battery Technology, whose clients include phone makers Apple, Huawei Technologies, and Honor, rose after the firm said it will invest CNY7.5 billion (USD1.2 billion) to build a research, development and production base for energy storage cells in Changsha, the capital of China’s central Hunan province.

After jumping as much as 4.8 percent earlier today, Desay Battery’s stock price [SHE: 000049] finished 0.7 percent higher at CNY52.34 (USD8.25). The stock has fallen just over 10 percent so far this year.

The new plant will be built in three phases and will have a total annual capacity of 20 gigawatt-hours, the Shenzhen-based company said in a statement late yesterday. The project is aimed at boosting Desay Battery’s business and profit, the firm noted. 

For 4 GWh, the first phase will be completed and put into operation in 2023. Desay Battery plans to spend CNY1.6 billion on that phase. The second and third stages, to begin construction in the first half of next year and the second half of 2025, respectively, will have 8 GWh each.

Once operational, the first phase will bring the firm CNY2.2 billion in revenue every year, climbing to CNY12 billion (USD1.9 billion) when the base is at full capacity, Desay Battery said.

Editor: Futura Costaglione