(Yicai Global) May 9 -- Hangzhou Cable’s shares soared by the exchange-imposed limit after the Chinese wire and cable manufacturer unveiled a CNY5 billion (USD750 million) plan to build a factory to make ultra-thin copper foil for power batteries.

Hangzhou Cable’s stock price [SHA: 603618] soared 10 percent today to close at CNY5.49 (82 US cents).

The new plant, with an annual capacity of 50,000 tons of copper foil for lithium batteries, will be based in Nanchang, Jiangxi province, a city rich in electrolytic copper, the Hangzhou-based firm said in a statement today.

The project’s first phase will have a capacity of 20,000 tons a year and the second 30,000 tons, Hangzhou Cable added, without disclosing the construction schedule.

The compound annual average growth rate of copper foil for lithium batteries is expected to reach 33.9 percent between 2020 and 2025, the firm noted, citing data from the Lithium Battery Research Institute of Gaogong Industry Research Institute. By 2025, global demand will reach 970,000 tons, creating huge potential, it added.

Although the investment will increase Hangzhou Cable’s capital expenditure and cash outlay, it will benefit its business layout and performance in the long run, the company pointed out.

Editor: Futura Costaglione