UPDATE 2.30pm: Shares in Quickstep soared after the company announced it was receiving strong interest from car manufacturers for lightweight parts developed using its patented Resin Spray Transfer technology.
Quickstep said it was in discussions with several leading global automotive manufacturers to manufacture panels using RST technology under licence.
"The company is pursuing large-volume production tests in co-operation with industrial partners in Germany, including Audi," Quickstep said in a statement.
Quickstep managing director Philippe Odouard said the company had delivered carbon fibre test panels to several carmakers to demonstrate the value of RST technology.
"The price competitiveness of RST compared to other technologies is attracting attention, and has led to requests for quotes," he said.
RST allows strong, leight-weight vehicle parts to be produced at high speed, low cost and with a high quality finish.
Quickstep said a fully automated production process meant lightweight carbon fibre composite car panels could be made in minutes and at very low cost compared to other, more capital-intensive methods.
Mr Odouard said car manufacturers were aiming to produce cars that were lighter, more affordable and consumed less fuel.
"We plan to manufacture exterior parts ourselves and also to licence our technology, enabling auto makers to produce carbon fibre car panels with the strength of steel and half the weight," he said.
Quickstep said the use of lightweight materials in cars was increasingly popular, driven by legislation in Europe and the US to reduce fuel consumption and carbon dioxide emissions.
Research and development of the RST technology was partly funded by a $2.5 million Climate Ready Grant from the Federal Government.
Quickstep shares jumped nine cents, or 45 per cent, to close at 29 cents after hitting an intraday peak of 31 cents.