(Yicai Global) Oct. 24 -- Shares of Dynavolt Renewable Energy Technology, one of the world's largest battery makers, gained after it revealed plans to spend CNY2.5 billion (USD353.5 million) building a five gigawatt-hour lithium-ion battery plant in central China's Henan province.

The stock price [SHE:002684] jumped over 5 percent to end the day at CNY2.67 (38 US cents), compared with a 0.1 percent dip in the benchmark Shenzhen Component Index.

A tripartite deal was signed yesterday with local firms in Sanmenxia city to construct the factory, the Shantou, Guangdong province-based firm said the same day. The High-Tech Industrial and Technological Development Zone will supply the land and infrastructure, while the Sanmenxia City Investment Group will help secure financial support from the Henan provincial government. No further details were given.

Dynavolt specializes in the development of high-quality lithium-ion batteries for electric vehicles and power grids. In recent years it has built production bases in Fujian and Hubei provinces both with annual production capacities of six GWh. It has not yet been able to turn a profit.