(Yicai Global) Jan. 11 -- Shares of Sunresin New Materials, which makes equipment to extract lithium from salt lakes, jumped after the firm announced a new plan to develop a salt lake project in western China to meet growing demand for the anode material used in batteries.

After surging as much as 10.4 percent today, Sunresin [SHE: 300487] finished 6.6 percent higher at CNY97.89 (USD15.36). The stock gained 122 percent last year.

Sunresin plans to develop the Kyetse Tsakha salt lake in Xizang Autonomous Region, according to the deal the Xi’an-based firm signed yesterday with Tibet National Energy Mining Development, which owns the development rights. Sunresin will set up a project company to build and operate a lithium hydroxide plant with an annual capacity of 10,000 tons.

The company has already set up a number of projects to extract lithium from salt lake brine with other partners, according to its website.

Tibet National Energy will provide brine resources and support facilities such as fresh water and electricity, while Sunresin will be responsible for the design, construction, installation, and operation of the production line. The plant will start up in October and reach full capacity by the end of next year.

Sunresin will decide whether to expand the plant’s capacity depending on future operations and  and cooperation plans, it added, without giving further details such as the amount of investment.

Xizang’s Ngari prefecture, where Kyetse Tsakha is located, is a desolate land rich in salt lake resources. Many listed companies have come out with plans to develop and process resources in the area amid robust demand for lithium.

Sunresin did not mention any potential partners, but Eve Energy said today that it has signed an agreement with Sunresin to help develop and run the Kyetse Tsakha project. The Chinese power battery giant will become a long-term buyer of the plant’s lithium hydroxide products, it added.

Editor: Futura Costaglione