(Yicai Global) Oct. 15 -- Shares of Chinese battery giant Contemporary Amperex Technology and American vehicle startup Electric Last Mile Solutions jumped after the pair penned a long-term battery supply agreement and agreed to explore joint production in the States.

CATL's stock price [SHE: 300750] soared as much as 8.7 percent intraday and closed 6.9 percent up at CNY569 (USD88.40). Its market value was about CNY1.3 trillion (USD207 billion).

ELMS's equity price [NASDAQ: ELMS] climbed 7.1 percent to USD7.59 yesterday, after which it was 0.4 percent down in pre-market trading. The startup was listed on the Nasdaq last June via a merger with a special purpose company.

The Chinese company will supply its 42-kilowatt-hour batteries to be used in ELMS’s all-electric delivery van, the Urban Delivery, till 2025, the Michigan-headquartered firm said in a statement on its website yesterday.

CATL’s cell-to-pack technology improves energy density, simplifies manufacturing, and results in cost savings, according to ELMS which delivered its first unit last month. Mass production of the firm's second model should begin in the second half of 2022.

CATL is China's largest electric vehicle battery manufacturer. From January to August, the Ningde-based company's installed capacity reached 49.1 gigawatt-hours, more than tripling from a year ago. That made it come in first among global battery suppliers with a 30.3 percent market share, according to market research firm SNE Research.

Editor: Emmi Laine, Xiao Yi