(Yicai Global) June 16 -- Shares of Senior Technology Material surged after the major Chinese producer of battery separators said it signed a CNY737 million (USD110 million) deal to supply Norway's Freyr Battery.

Senior Tech's stock [SHE: 300568] ended today 4.3 percent higher at CNY28.15 (USD4.19), after climbing by as much as 7 percent in the morning. The shares have gained almost 15 percent since the start of the year.

The Chinese supplier will provide battery cell manufacturer Freyr with separators from 2023 to 2028 based on the latter's actual needs, the Shenzhen-based firm that counts LG Chem and Samsung SDI as some of its clients said in a statement yesterday.

Freyr may extend the agreement till 2031, according to the Mo i Rana-based company's statement released the same day. Freyr's products are used in electric vehicles, as well as energy storage and marine applications.

Freyr is building a factory in its hometown in northern Norway while planning to construct two more, it said. The supply deal with Senior Tech should ensure battery separator supply for the three plants at their initial stages.

The Chinese partner is also expanding quickly. Senior Tech is building a plant in Sweden to cater to the needs of its local client Northvolt. Moreover, the Chinese company said in March that it is planning to build its fourth domestic plant in Nantong.

After Senior Tech's Swedish factory is ready, it will take care of Freyr's orders instead of the Changzhou facility, based on the statement.

Editor: Emmi Laine, Xiao Yi