(Yicai Global) March 12 -- Shares in Jiangmen Kanhoo Industry, a Chinese firm that makes equipment for processing lithium batteries, hit the 10 percent daily limit today after the company revealed it had landed a deal to supply to the German arm of global battery giant Contemporary Amperex Technology.

Kanhoo stock [SHE:300340] maxed out at CNY14.06 (USD2.02) within five minutes of the opening bell and has remained there since.

CATL will install the gear at its European power battery plant to cut lithium battery anode and cathode electrodes, Kanhoo said in a statement yesterday. The specification of each machine and their delivery dates will be subject to individual orders, it added, saying the pair will set prices in batches based on negotiations.

The specific companies carrying out the agreement are Kanhoo's wholly owned Shenzhen Haoneng Technology and CATL Thuringia, according to the statement.

CATL is one of the world's biggest power battery makers and inked a EUR240 million (USD272 million) investment deal with the Thuringia state government in July 2018, agreeing to build a battery factory and smart manufacturing research hub in the region. It began construction in the second half of last year and expects capacity to hit 14 gigawatt-hours per year in 2022, when it will be supplying to the likes of Volkswagen, BMW and Groupe PSA.

Editor: James Boynton