(Yicai) May 22 -- Shares of Jiemei Electronic Technology advanced after the Chinese company that forayed into the battery component industry at the end of last year said it will develop and supply core battery components to a leading solid-state battery firm.

Jiemei [SHE: 002859] closed 1.7 percent up at CNY19.36 (USD2.69) in Shenzhen today, after earlier gaining as much as 9.6 percent.

Jiemei's subsidiary Rouzhen Technology will develop composite current collector products for a leading solid-state battery maker and become its supplier, the Zhejiang province-based parent company announced yesterday.

Current collectors are conductive carriers for lithium battery electrodes. Composite current collectors are a new type of collector material that offers enhanced safety, ensures higher energy density, and allows lower production costs than traditional current collectors.

Rouzhen's production capacity of composite current collectors for solid-state batteries will exceed 600,000 square meters by the end of this year, Jiemei noted, adding that the client will purchase no less than 70 percent of such capacity.

Rouzhen will then increase its composite current collector production capacity in the next two years, along with the client's solid-state battery output capacity, Jiemei pointed out.

"The client's solid-state battery development technology is industry-leading," Jiemei said. "As solid-state battery applications mature, related production capacity is expected to rise quickly, driving higher demand for raw materials and creating promising market opportunities for Rouzhen's products."

Jiemei is a leading supplier of electronic-grade film materials. At the end of last year, it acquired Rouzhen, a current collector producer, to create industrial chain synergy between their core businesses and seize opportunities in emerging industries, such as new energy vehicles, energy storage, and humanoid robots.

Editor: Futura Costaglione