(Yicai Global) May 17 -- Eve Energy has refuted a media report which claimed that the Chinese firm is in talks with Tesla about low-cost battery supplies.

Eve hasn't communicated with Tesla about offering its lithium iron phosphate batteries to the US carmaker as of May 14, the Huizhou-based company said in a statement that day.

The pair's negotiations should result in an agreement in the next quarter, Reuters reported on May 14, citing four unidentified people familiar with the matter. The Chinese company's stock price surged more than 14 percent that day.

Eve, which counts Germany’s Daimler and South Korea’s Hyundai Kia Automotive Group as some of its clients, is building a CNY4.9 billion (USD761 million) plant in Huizhou to meet the rising international demand for lithium iron phosphate batteries, according to its announcements in February and March.

Shares of Eve [SHE:300014] climbed as much as 3.7 percent to CNY100.11 (USD15.60) intraday this morning.

Editor: Emmi Laine, Xiao Yi