(Yicai Global) July 22 -- Shares in Contemporary Amperex Technology advanced as much as 4.4 percent today after the Chinese electric car battery giant said that it will start to supply US automaker Ford Motor with batteries from next year and that it will build a new plant in eastern Shandong province to further hike output.

CATL’s stock price [SHE:300750] was trading up 2.13 percent at CNY532.09 (USD78) as of 1:30 p.m. China time today. Earlier in the day it had hit CNY543.99.

CATL will supply lithium iron phosphate battery packs to Michigan-based Ford’s EV plants in China, Europe and North America, the world’s biggest lithium battery maker said yesterday, citing the agreement penned between the pair.

It will start by providing the battery packs for the Mustang Mach-E from next year and the F-150 Lightning pickup truck from 2024, it said. Both models are manufactured in the US.

The pair will explore other opportunities to cooperate on global business and battery technologies, the Ningde, southeastern Fujian province-based company added. No financial details nor order volumes were given.

The battery giant is also planning to invest CNY14 billion (USD2 billion) to build a power battery and energy storage facility assembly factory in Jining, Shandong Province, it said, without mentioning the plant’s designed capacity. Construction should be finished in two years’ time.

CATL will also set up an EV battery swap network in Jining and will work with a local firm to develop electric ships and related technologies, it said, citing agreements signed with the local government and the company. No further details, including investment amounts, were given.

Editor: Kim Taylor