Battery components maker Sunrise New Energy said on Wednesday that it had received interest for its products from electric vehicle maker Tesla Inc.
Sunrise shares rose as much as 11% to $1.87 in morning trade.
The China-based company, through its joint venture, manufactures and sells graphite anode material for lithium-ion batteries. Tesla uses lithium-ion batteries to power its cars.
Sunrise's joint venture is also constructing a 260,543 m2 manufacturing plant in China's Guizhou province.
Sunrise said it had received request from Tesla's battery raw materials team to provide technology details, manufacture plans and available capacity for its products.
Tesla has been making supply deals with lithium companies including Liontown Resources and Core Lithium to meet raw material demand for its vehicles.
Sunrise also said on Wednesday it had applied for two patents for its hard carbon composite materials this month. So far, the company has been granted 25 patents.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Maju Samuel)
