Beijing HyperStrong Technology's (SHA:688411) purchase of at least 200 gigawatt-hours of energy from battery giant Contemporary Amperex Technology or CATL (SHE:300750, HKG:3750) has fueled investor optimism in the sector.
HyperStrong surged 19% during afternoon trading on Thursday, while CATL's shares jumped nearly 8% in Shenzhen and 3% in Hong Kong.
Shares in the battery giant even rallied as high as 8.4% on Thursday.
"The deal confirms strong energy storage system demand globally and a shortage of high-end products, as well as CATL's championship in the value chain," Bloomberg quoted Morgan Stanley analysts, incluidng Jack Lu, as saying.
The deal between HyperStrong and CATL will span from Jan. 1, 2026 to Dec. 31, 2025, according to a filing with the Shanghai bourse.