Tianneng Power International, China's largest maker of lead-acid batteries for electric bicycles, will expand production of batteries for electric cars according to a report in the South China Morning Post.

"We are determined to expand in the presently untapped segment," Chen Minru, senior vice president of Tianneng, told the newspaper. "There's a huge potential in the market and Tianneng has to rev up the expansion pace."

The report said that Zhang Tianren, chairman of Tianneng, has announced that the company would start trial operations of its new 1.6 billion yuan manufacturing facility of lead-acid batteries for electric cars in January 2017.

The new production facility in Changxing will have an annual capacity of 15 million kilovolt-ampere-hours and is expected to generate sales of 6 billion yuan a year, the report said, with batteries earmarked for mini electric vehicles whose maximum speed can reach 80 kilometres an hour.

Beijing has set a target of 5 million electrified new-energy vehicles on the road by 2020.