(Yicai Global) Aug. 19 -- Shares of China's Guibao Science and Technology rallied to a more than six-year high after the silicone sealant supplier said it will work with battery giant Contemporary Amperex Technology to develop new battery materials.

Guibao’s stock price [SHE: 300019] jumped almost 20 percent to CNY25.40 (USD3.90) intraday, the highest since the second quarter of 2015.

The pair will jointly develop sealing materials for batteries to improve their thermal conductivity, shock absorption, and insulation capabilities, the Chengdu-based adhesive manufacturer said in a statement today, without disclosing any financial details of the agreement.

Cooperation with the strong battery brand owner will give full play to the advantages that Guibao has developed in organosilicon compounds, and enhance its market share in the lithium battery market, said the firm. The partnership could also spark more joint projects in the future, it added.

Editor: Emmi Laine