(Yicai Global) July 23 -- Eve Energy’s shares gave up ground today after setting an intraday record high, as the Chinese battery maker set out plans to invest CNY2.45 billion (USD379 million) expanding capacity at a lithium battery plant.

The stock [SHE: 300014] ended down 0.6 percent at CNY125.23 (USD19.33). Earlier in the day it gained as much as 4.7 percent to CNY131.88. The benchmark ChiNext Index fell 2.1 percent.

Eve Energy signed a contract with Jingmen High-tech Industrial Development Zone in Hubei province to build five lithium battery production lines and related facilities in the area, with planned annual production capacity of 12.2 gigawatt hours, the Huizhou-based company said in a statement yesterday.

This is the first construction project revealed by Eve Energy since it announced plans last month for a phased expansion of the Jingmen plant.

Eve Energy reached a cooperation deal with the Jingmen zone in June to invest in a lithium battery industrial park with annual output of 104.5 GWh, of which 11 GWh has been built, 11 GWh is under construction, and 82.5 GWh will be invested in phases. It did not disclose the size of the total investment in the expansion.

Founded in 2001, Eve Energy, which manufactures lithium batteries for consumer electronics and new energy vehicles, has expanded its capacity in recent years with the rapid growth of the downstream market. This has pushed up its stock price, which has gained more than 50 percent so far this year.

Editor: Peter Thomas