(Yicai Global) July 9 -- Shares in Farasis Energy surged as much as 14 percent today after the Chinese lithium battery maker announced it has agreed to purchase 25,000 tons of graphite from a unit of Chinese apparel and new energy firm Ningbo Shanshan to ensure the steady supply of raw materials.

Farasis Energy’s share price [SHA:688567] closed up 11.82 percent today at CNY38.13 (USD5.88). Earlier in the day it had reached CNY38.89. Ningbo Shanshan’s stock price [SHA:600884] finished the day up 4.26 percent at CNY28.64 (USD4.41). Earlier in the day it had reached a historic high of CNY29.47.

Farasis Energy will purchase 3,910 tons of graphite from Shanghai Shanshan New Material this year and another 21,530 tons next year, the Ganzhou, eastern Jiangxi-based company said. The actual purchase amount can still be updated each month.

Farasis Energy is one of China’s biggest suppliers of soft-packing power batteries, which have a soft polymer shell as opposed to hard steel or aluminum casing and as a result are lighter and less likely to explode. The firm held 20 percent market share in China last year, according to media and newly-emerging sector research firm SPIR.

German carmaker Daimler, which holds a 3 percent stake in Farasis Energy, is its second biggest client and purchased CNY196 million (USD30.2 million) worth of batteries in 2020.

Editor: Kim Taylor