(Yicai Global) July 23 -- Wanshun New Material Group’s shares surged this morning after it announced plans to invest CNY1.2 billion (USD184 million) in a project that will produce aluminum foil for lithium battery cathodes.

Wanshun New Material [SHE: 300057] closed up 3 percent at CNY7.1 (USD1.10) today, after its shares hit CNY8.3 in morning trading, the highest level since January 2018.

The project will be built in Guangyuan in China’s southwest Sichuan province, with construction scheduled to begin at the end of this September and finish in May 2023. It will produce 130,000 tons of aluminum foil materials annually, the Shantou, Guangdong-based company said in a statement yesterday.

After completion, the project is expected to generate annual revenue of CNY2.9 billion and CNY87.7 million in net profit, the firm said, adding that it will help cut production costs and better meet the demand for high-precision aluminum foil products.

Editor: Tom Litting