(Yicai) Oct. 10 -- Eve Energy's shares rose after the major Chinese battery producer said it was picked as the long-term supplier for the fuel cell electric vehicle development project of a European company.

Eve Energy [SHE: 300014] jumped 2.7 percent to CNY50.72 (USD7.18) a share as of 1.30 p.m. in Shenzhen today, after earlier surging by as much as 6 percent against the overall downtrend in the Chinese mainland stock market.

Eve Energy was named the designated parts supplier of the European firm for the entire development cycle of its fuel cell EV project, the Huizhou-based firm announced late yesterday. 

Eve Energy and the client will leverage their respective innovative capabilities and technological strengths to speed up the adoption of hydrogen fuel cell tech and jointly promote its practical use, the Chinese firm noted, without disclosing further details such as the type and quantity of parts to be supplied or the products' pricing and specifics.

The deal represents a new business venture for Eve Energy in zero-emission mobility. Revenue from various lithium-ion battery products accounted for 99.8 percent of its total last year, according to its annual earnings report.

Hydrogen fuel cell vehicles generate power through fuel cells, making them a cleaner mode of transportation than conventional EVs. However, their technological and commercial development is still far less mature than that of EVs.

Editor: Martin Kadiev