Contemporary Amperex Technology Limited (CATL), the world’s largest producer of electric vehicle (EV) batteries, rallied to lift its market capitalisation above 2 trillion yuan (US$293.4 billion) after creating a subsidiary to manage its mining assets, signalling a deeper push into the energy storage business.

Its Shenzhen-listed shares rose 5.3 per cent to 453.98 yuan on Thursday, At 2.07 trillion yuan, the company ranks as the mainland’s fifth-largest listed firm, Shanghai DZH data shows. Its Hong Kong-listed stock jumped 9 per cent to HK$714.50.

Other energy storage-related stocks on the mainland also gained, as investors bet that the US-Iran conflict would accelerate demand for renewable energy.

The gains followed an exchange filing that raised expectations the Fujian-based company would step up its expansion into energy storage to offset slowing EV sales in China.

CATL said after the market close on Wednesday that it would establish a 30 billion yuan investment arm to consolidate its mining assets, invest in mineral projects at home and abroad, and secure raw material supplies for its core operations.

“CATL can position itself at the forefront of the industry through upstream resources to mitigate the impact of rising material costs,” said Zhang Lei, an analyst at Great Wall Securities, adding he expected the company’s profit to grow by nearly 30 per cent this year.