(Yicai) June 27 -- Shares in Ningbo Huaxiang Electronic soared by the exchange-imposed limit today after the Chinese auto parts supplier said that its new smart robotics unit has been selected as an original equipment manufacturer for robotics startup Shanghai Zhiyuan Xinchuang Technology, also known as AgiBot.

Huaxiang Electronic’s share price [SHE:002048] was trading up 10 percent at CNY17.50 (USD2.44) as of 2.30 p.m.

The Shanghai subsidiary will produce full-size bipedal humanoid robots for Agibot over the next three years, Huaxiang Electronic said yesterday.

The two firms already agreed last month to partner with a local government-backed investment firm and jointly invest in building a humanoid robot production base in Xiangshan county, where Huaxiang Electronic is located. The idea is to eventually establish a local industrial chain ecosystem for intelligent robots.

It is still unclear whether the new production deal in Shanghai will affect investment for the planned joint venture factory in Xiangshan. Another auto parts supplier, PIA Automation, also said in early April that it is linking arms with Shanghai-based AgiBot to build a humanoid robot factory with an initial annual capacity of 1,000 units.

Founded in February 2023, AgiBot focuses on integrating cutting-edge AI and robotics to create world-leading general-purpose embodied intelligent robots and application ecosystems. Since its establishment, AgiBot has closed several rounds of financing led by big name investors such as private equity firms GL Ventures and CDH Investments as well as auto and battery maker BYD.

AgiBot unveiled its first-generation general-purpose embodied intelligent robot prototype, Expedition A1, in August 2023 and mass production started a year later. On Jan. 6, the 1,000th Expedition A1 robot rolled off the production line.

Editor: Kim Taylor