NEW YORK (TheStreet) -- China BAK Battery (CBAK) soared to a new 52-week high of $5 on Wednesday after South Korea's LG Chem said it would invest hundreds of millions of dollars to build an electric car factory in China, according to The Wall Street Journal.
The company plans to invest the amount by 2020. The plant will have a yearly production capacity of batteries for more than 100,000 electric vehicles when it is built by the end of 2015, according to LG Chem's statement.
China Bak Battery, which manufactures lithium-based battery cells, could benefit from LG Chem's plan to revitalize the worldwide growth of zero-emission vehicles by starting in the world's largest car market.
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The stock was up 50.2% to $3.77 at 1 p.m. More than 4 million shares had changed hands, which eclipsed the average volume of 111,879.