(Yicai) Jan. 11 -- Shares of Defu Technology surged over 6 percent after the Chinese firm said it will become a designated supplier of copper foil for a leading German car manufacturer.

Defu [SHE: 301511] closed up 6.6 percent at CNY29.21 (USD4.10) today.

The Chinese maker of copper foil products and a battery unit of the German automotive manufacturer signed a supplier agreement, the Jiangxi province-based company announced yesterday. They agreed on products, order volume, unit price, and delivery. 

The deal should positively impact Defu's future financial condition and operating results and is key for the firm in its development plans in European markets, it said, without disclosing more financial details of the agreement.

Defu occupied nearly 13 percent of the domestic market of copper foil used in lithium-ion batteries in 2022, counting Contemporary Amperex Technology, LG Chem, BYD, and Volkswagen-backed Gotion High-Tech as some of its clients, an executive disclosed during a road show last August. LG Chem owns over 4 percent of Defu, and some of the latter's notable but smaller shareholders include Ganfeng Lithium, a provider of lithium for batteries, and an investment fund participated by CATL.

Editor: Emmi Laine