(Yicai Global) July 24 -- Shares in Wencan Group surged as much as 8.6 percent today after the Chinese producer of aluminum alloy precision components for autos said that it has secured two contracts worth as much as CNY4.1 billion (USD570 million) from a leading Chinese new energy vehicle maker and a battery manufacturer.

Wencan’s share price [SHA:603348] was trading up 4.5 percent at CNY50.80 (USD7) as of 2 p.m. China time today. Earlier in the day it hit CNY52.84.

In the first deal, worth between CNY2.3 billion (USD319.6 million) and CNY2.6 billion, Wencan will supply three types of aluminum die-cast body parts, which include front cabin and rear floor components, to an electric carmaker, the Foshan, southern Guangdong province-based company said on July 21.

The parts will be made at Wencan’s production base in Tianjin, near Beijing. Deliveries should start in the third quarter next year, and the product life cycle is expected to be four years.

For its battery maker customer, Wencan will design and manufacture two kinds of aluminum battery cases in a deal worth between CNY1.4 billion (USD194.5 million) and CNY1.5 billion, it said. The batteries will be supplied to hybrid vehicles made by a well-known German carmaker.

The parts will be manufactured at Wencan’s facility in Foshan and are expected to have a life span of 12 years. Shipments will begin in the fourth quarter next year.

The identities of the two clients were not mentioned due to confidentiality agreements that are in place. But the company counts Chinese EV startups including Nio, Li Auto and Xpeng Motors, German auto manufacturers such as Volkswagen, BMW and Audi, as well as battery makers such as EVE Lithium Energy and Sunwoda among its clients, according to its 2022 financial report.

Editor: Kim Taylor