LOPAL TECH (HKEX: 02465) shares have surged more than 10%. At the time of writing, the stock is up 10.13% to HK$13.59, with a trading turnover of HK$197 million.

The significant price movement is linked to reports highlighting a sustained surge in the prices of key battery materials. Lithium iron phosphate and lithium iron phosphate are crucial raw materials for new energy and energy storage batteries. Their prices have been climbing steadily throughout the year, maintaining high market interest.

Reports indicate that the current price for a bag of lithium iron phosphate weighing approximately 400 kilograms now exceeds 25,000 yuan, a stark increase from the price of just 10,000 yuan a year ago, representing a doubling in cost. Despite this substantial price hike, market demand remains robust.

Adding to the positive sentiment, LOPAL TECH recently announced plans to invest in building a large-scale production project for new energy vehicle power and energy storage battery cathode materials in Indonesia. The total investment for the project is approximately US$160 million, equivalent to about 1.088 billion yuan.

Upon the full completion and operation of all three phases, the total production capacity of the company's Indonesian base is projected to leap from the current 30,000 tons to 120,000 tons. This expansion is set to establish the facility as the largest overseas lithium iron phosphate cathode material plant.