01:09 PM EST, 01/14/2025 (MT Newswires) -- Cymat Technologies ( CYMHF ) on Tuesday entered into a joint development agreement with an established Japanese trading and manufacturing company specializing in automotive, chemicals, plastics, electronics and life science products, pushing the company's shares up 39%.

The company said primary purpose of the agreement is to jointly develop innovative automotive solutions for EV battery function and protection based on customer demand. Cymat ( CYMHF ) has already been collaborating with the Japanese company for almost a year to advance its first initiative in response to OEM interest.

The initial component that the partnership is developing is a lightweight, multi-functional automotive EV battery encasement targeted to a particular Japanese original equipment manufacturer (OEM).

The partnership aims to initially enhance the component in terms of its battery functionality and level of impact resistance needed by the targeted Japanese OEM. The company said the new design is already undergoing physical testing to validate design performance metrics.

The partnership is in the process of filing patents to protect the innovative elements of this design and are in discussions with a major Japanese Tier 1 automotive manufacturer to assemble this component.

"We are very excited to be working with a world-class partner on this new EV battery component. We believe that these modifications to our original OEM component will hold broader appeal throughout the automotive industry," said Cymat ( CYMHF ) Chief Executive Michael Liik. "This sector is highly motivated to utilize lighter, cost-effective, energy-absorbing materials in its quest to effectively compete in the new EV landscape."

Shares of the company were last seen up $0.045 to $0.16 on the TSX Venture Exchange.

Price: 0.16, Change: +0.05, Percent Change: +39.13