(Yicai Global) Jan. 17 -- Shares of Yunnan Energy New Materials jumped after the Chinese firm said one of its units will supply a large foreign carmaker with lithium battery separators.

Yunnan Energy [SHE: 002812] closed up 7.5 percent at CNY276.48 (USD43.55) today. The stock has gained more than 10 percent so far this year, after climbing nearly 77 percent last year.

Shanghai Energy New Materials Technology recently agreed a deal to supply the unidentified automaker with up to 1.65 billion square meters of separators from this year to 2024 and up to 900 million sqm from 2025, its Yuxi-based parent company said in a statement on Jan. 14.

Yunnan Energy already supplies global battery makers such as Panasonic, Samsung Electronics, LG Chem, Contemporary Amperex Technology, BYD, Gotion High-Tech, and Farasis Energy.

The company said the deal will help it strengthen long-term stable cooperation as well as boost its profitability and global competitiveness.

Yunnan Energy shipped about 2.8 billion sqm of lithium battery separators last year, with that likely to soar to 6.6 billion sqm by next year, according to a forecast by Eastmoney Securities.

Editor: Futura Costaglione