(Yicai Global) Dec. 14 -- Shares of Azure jumped after the Chinese chip manufacturing and metal logistics firm said that it will invest CNY1.3 billion (USD190 million) to build a production line to meet the growing demand for lithium batteries.

Azure's stock price [SHE:002245] surged by the daily limit of 10 percent to CNY9.90 (USD1.50) this morning with a CNY8.8 billion (USD1.3 billion).

The company, formerly known as Aucksun, will expand its Tenpower plant in eastern China's Zhangjiagang to make a total of 700 million ternary lithium battery cells each year, up by 400 million cells with a capacity of 1 billion ampere-hours, the Jiangsu province-based firm said in a statement yesterday.

Azure has lately been diversifying its business to power units used in industrial machinery and electric bikes.

Making batteries has become the most important business for Azure to promote its continuous and rapid growth, it said. The expansion project will help Tenpower become a leading international supplier of lithium battery cells, it added.

Editor: Emmi Laine