(Yicai Global) Oct. 22 -- Shares in Cangzhou Mingzhu Plastic soared by the exchange-imposed limit after the rubber and plastics producer said it will invest CNY700 million (USD110 million) to build a lithium battery separator plant amid growing demand in the electric vehicle market.

Cangzhou Mingzhu’s stock price [SHE:002108] rose 10 percent to CNY8.29 (USD1.30) today, giving it a market cap of CNY11.7 billion (USD1.8 billion).

The plant will have an annual output of 200 million square meters of lithium battery separators, the Hebei province-based firm said late yesterday. The project, located in Wuhu, a city on the lower reaches of the Yangtze River, is expected to be completed in 24 months.

Cangzhou Mingzhu’s annual output of lithium battery separators is 190 million square meters, with additional 200 million square meters under construction.

The project can help boost the scale and market share of the firm’s lithium battery separator products, and enhance its competitiveness in the industry, Cangzhou Mingzhu added.

Editor: Futura Costaglione