Trackwise Designs shares (LON: TWD) surged 22.51% on Friday’s opening as the group signed a three-year agreement with an electric vehicle manufacturer.

The agreement is expected to be worth up to £38m.

“This is a very significant commercial milestone for Trackwise. Our customer is at the forefront of driving the adoption of sustainable technologies and the selection of Trackwise to help power its vehicles at scale is a fantastic endorsement of our technology,” said Trackwise Design’s chief executive, Philip Johnston.

“With our manufacturing capacity and capability recently improved, we look forward to continuing to support our customer as it looks to build out its transportation ecosystem in the coming years.

“At the same time, the number of opportunities for the application of IHT elsewhere in the electric vehicle industry and across our other target markets continues to grow at a healthy rate. We look forward to updating shareholders with further progress in due course,” he added.

The agreement can be terminated by any party after 31 December 2023.

Trackwise Designs shares (LON: TWD) are currently trading +27.40% at 147,15 (0846GMT).