(Yicai Global) March 24 -- Chinese battery maker Eve Energy will team up with Dynanonic on building a factory worth nearly CNY2 billion (USD310 million) to secure its lithium iron phosphate supply.

The pair will set up a joint venture for the project, the Guangdong province-based company said in a statement yesterday. Eve Energy will have a 40 percent stake in the undertaking and the Shenzhen-based nanomaterials firm, which counts Contemporary Amperex Technology as one of its major clients, holds the remainder.

The factory will produce low-cost and high-quality lithium iron phosphate, used in batteries. The facility is expected to be ready within 12 months and have an annual capacity of 100,000 tons, the statement added, without disclosing the location of the plant.

Eve Energy and its units will be the first in line to receive the products and enjoy discounts, but the exact prices will be based on negotiation.

Eve Energy’s stock price [SHE: 300014] was 0.2 percent up at CNY69.78 (USD10.70) this afternoon.

Dynanonic's equity price [SHE:300769] was unchanged at CNY108.10 (USD16.60).

Editor: Emmi Laine, Xiao Yi