(Yicai Global) April 11 -- Shares in Ningbo Fangzheng Automobile Mold advanced today, despite an overall downward trend in the markets, after the Chinese auto parts and mold maker said it has signed a long-term deal with battery manufacturer Shenzhen BAK Power Battery to supply precision structure components for electric car batteries.

Fangzheng Auto’s share price [SHE:300998] was trading up 2.19 percent at CNY25.68 (USD4) as of 2 p.m. China time today. The Growth Enterprise Market index where it is listed slumped 3.47 percent.

BAK Power will purchase 30 million pieces of precision structure components for electric car batteries this year and next, Ningbo, eastern Zhejiang province-based Fangzheng Auto said yesterday.

Then, from 2023 to 2025, Fangzheng Auto will be the primary supplier of battery precision structure components to Shenzhen-based BAK Power with an annual purchase amount of no less than CNY400 million (USD63 million), it said.

The deal is expected to greatly boost Fangzheng Auto’s performance. In the first three quarters last year, the company only earned CNY350 million, a year-on-year gain of 15.6 percent.

The cooperation between the two parties will not be limited to auto batteries, but will also involve energy storage batteries and batteries for small power tools, it added.

Editor: Kim Taylor