(Yicai Global) Aug. 8 -- Shares of Dcenti Auto Parts Stock soared by the daily limit after the Chinese tires and wheels supplier said it plans to expand into battery raw materials by spending CNY2 billion (USD296 million) on a recycling plant for used lithium battery electrodes.

Dcenti [SHA: 603335] surged 10 percent today to finish at CNY7.99 (USD1.18) a share. The Taishan, Guangdong province-based company’s stock is up 26 percent so far this year.

The plant, to be built in Jiangmen, in China’s southern Guangdong province, will have an annual capacity of 50,000 tons of sulfate products including cobalt, nickel, lithium, and manganese, Dcenti said late yesterday, citing the letter of intent it signed with the local government of Xinhui district in Jiangmen.

The project will also include a factory with an annual production capacity of 50,000 tons of precursor materials with high nickel content for ternary lithium batteries, the firm added.

The investment will be made in two tranches of CNY800 million (USD118.3 million) and CNY1.2 billion. Dcenti did not release any details about the project’s construction schedule.

Founded in the United States in 1999, Dcenti’s shareholders set up Dcenti Auto Parts Stock in 2001, making it one of China’s largest exporters of auto wheel parts. The company has an annual production capacity of 1 million pieces, according to its official website.