(Yicai Global) May 12 -- Shares in Xiamen Zhongchuang Environmental Technology surged today after the Chinese flue dust remover and materials supplier said it is setting up a company with other investors to develop perovskite solar batteries, which have the potential to be more energy efficient and cheaper than mainstream silicon photovoltaic cells.

The firm’s stock price [SHE:300056] closed up 8.6 percent at CNY7.18 (USD1) apiece today.

Zhongchuang is teaming up with Gao Peng, a technical developer who works at the Chinese Academy of Sciences, and two other investors to form a joint venture with a registered capital of CNY20 million (USD2.9 million) to develop perovskite solar battery materials as well as other devices that will be used in PV panels, it said yesterday.

Perovskite batteries are third-generation PV cells and have the potential to be more efficient than crystalline silicon photovoltaic cells in converting light into electricity and have greater room for cost-cutting.

Zhongchuang will invest CNY5.2 million (USD748,800) in the JV to get a 26 percent stake, Gao will obtain a 40 percent stake by contributing two patents and one patent that is still under review, and another two investors will invest with resources and services to secure 25 percent and 9 percent equity, respectively, the Xiamen, southeastern Fujian province-based firm said.

Zhongchuang plans to increase its stake to no less than 51 percent by buying back shares from the other stakeholders once there is stable demand for the batteries and to not less than 70 percent once the technical specifications of the product are set, Zhongchuang said. The firm will also help the JV to extend its business downstream to make batteries and panels.

Editor: Kim Taylor