(Yicai) Jan. 13 -- Shares in Jinlongyu Group surged as much as 9.6 percent today after the Chinese wire and cable maker said that it intends to invest CNY1.2 billion (USD170 million) to construct a solid-state battery factory, marking a major step in the firm's push into the emerging technology.

Jinlongyu’s share price [SHE:002882] closed up 7.5 percent at CNY36.78 (USD5.25). Earlier in the day it hit CNY37.49.

The factory, which will be set up in leased facilities in Shenzhen’s Dapeng New District, will have an annual capacity of 2 gigawatt hours, Jinlongyu said yesterday. Construction is expected to take about two years.

No further details, such as the names of potential customers, were disclosed. However, Jinlongyu had said in May last year that the Shenzhen-based firm has already bagged an order of 100,000 units of one of its solid-state battery cells with an energy density of 500 watt-hours per kilogram from a drone manufacturer and that deliveries would be completed within a year.

Solid-state batteries are a new type of battery that uses solid electrolytes rather than traditional liquid ones. They offer numerous advantages, including high energy density and improved safety. However, the industrial production of solid-state batteries is still in its early stages.

Jinlongyu began branching into the solid-state battery sector in 2021. By the end of 2024, it had completed the synthesis, production process validation, customer evaluations and safety testing of multiple battery materials, including cells, electrolytes and separators as well as anode and cathode materials, according to its 2024 annual report.

In April last year, Jinlongyu announced another CNY1.2 billion investment to build a solid-state battery materials production base in Huizhou, a city neighboring Shenzhen. This marked the start of the firm’s industrial-scale production of solid-state battery materials and the following month at the China International Battery Fair, Jinlongyu showcased its self-developed solid-state battery cells, electrolytes and ion-conducting membranes. The company said its products could be used in drones, electric vehicles, two-wheelers and energy storage systems.

Editor: Kim Taylor