(Yicai Global) April 15 -- Shares in Lifan Industry soared by the maximum allowed after the well-known Chinese carmaker unveiled plans to develop and mass-produce hydrogen-fueled vehicles.
The stock price [SHA:601777] jumped 9.95 percent to close at CNY6.19 (USD0.91) after the Chongqing-based firm announced plans to partner with a local government-backed research institute and Wuhan's Tiger Fuel Cell Vehicle on hydrogen cars.
The three parties have also gained policy support from the local authorities in Chongqing, the statement said.
The cooperation involves technology development, original equipment manufacturing, marketing, equity investment and other options, said Lifan, adding that it will reveal the details of the investment amount after negotiations on the final deal.
Lifan will provide prototype hydrogen cars for the research team as well as take part in vehicle technology integration. Tiger will research the fuel cell system and the Chongqing Geoscience Industrial Technology Research Institute will support the project with necessary funding and technologies.
Lifan will also have access to OEM production for hydrogen fuel cell engines after the prototype is made, and will be responsible for its promotion through existing market channels.
The CGITRI was co-founded by the Wuhan-based China University of Geosciences as well as Chongqing Municipal government. It develops and invests in the automobile industrial chain.
The institute also penned deals with a local car rental company and the government of Nan'an district of Chongqing two days before the above deal, to start a car-sharing project in Chongqing, which is also China's first hydrogen car-sharing project.
Editor: William Clegg