Eve Energy's shares rose after the major Chinese battery producer said it was picked as the supplier of new prototype batteries for the flying car unit of domestic new energy vehicle startup Xpeng Motors.

Eve Energy [SHE: 300014] climbed 2.3 percent to CNY51.49 (USD7.12) a share as of 2.30 p.m. in Shenzhen today, after earlier jumping by as much as 4.1 percent.

Eve Energy was named the designated next-generation low-voltage lithium batteries supplier of Xpeng Aeroht, the Huizhou-based firm announced late yesterday.

The deal reflects Xpeng Aeroht's recognition of Eve Energy's research and development capabilities, product performance, and supply qualifications, the battery maker noted. The project's successful implementation would deepen the pair's tie-up in building a new ecosystem for the low-altitude economy, it added, without disclosing further details.

Low-voltage lithium batteries mainly serve as auxiliary energy sources and power non-critical, low-power components in flying cars, including electronic controls, lighting, and communication systems.

Xpeng Aeroht will likely finish building its new plant in Guangzhou in the third quarter of this year. The factory will produce 10,000 units of its Land Aircraft Carrier a year, which use a range-extender hybrid powertrain, with mass production scheduled to begin next year.

The Land Aircraft Carrier is designed for personal short-range low-altitude travel, tourism services, and public utilities such as emergency rescue operations, according to Xpeng Aeroht.