NEW YORK (AP) — China BAK Battery Inc., which makes laptop and electronic device batteries, said Monday it signed a nonbinding letter of intent with Hewlett-Packard Co. that may lead to a supply agreement.
Under the terms of the letter, the companies agreed to work toward a definitive agreement in which China BAK would supply lithium ion battery cells to HP.
China BAK said it agreed — subject to completion of negotiation — to allocate at least half its monthly cylindrical lithium ion battery cell manufacturing capacity to HP or HP's designated battery pack manufacturers.
Shares of China BAK rose $1.23, or 29.2 percent, to $5.44 Monday in after hours trading, following an earlier close at $4.21. The shares have ranged from $2.85 to $8.31 over the past year.