Pilbara Minerals Ltd (ASX: PLS) has announced that it has struck a multi-million dollar deal with Chinese automaker Great Wall Motor Company.
Pilbara Minerals said it's the first time an electric manufacturer has struck a direct investment deal with a lithium supplier.
Under the offtake agreement, Great Wall will provide Pilbara Minerals with $28 million in an upfront equity subscription for shares in the Australian miner and take up to 150,000 tonnes per year of spodumene concentrate, a source of lithium.
Pilbara Mineral's Managing Director and CEO Ken Brinsden said the deal represents an "important milestone" for Western Australia's Pilbara region and the lithium mining project in Pilgangoora, near Marble Bar.
"It highlights the strategic importance for the global automotive sector of securing access to large scale, consistent, high quality sources of battery raw materials in low-risk jurisdictions," Mr Brinsden said.
"Attracting a company of Great Wall's size and calibre as a long-term, off-take and funding partner is a strong endorsement for the Pilgangoora Project and the company."
Great Wall recently unveiled six "new-energy" SUV models under its high-end brand Wey at this year's Frankfurt Motor Show, according to the China Daily.
Great Wall is listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange, with a market capitalisation of more than $18 billion.
With more than 60,000 employees and four vehicle manufacturing bases, it's one of China's largest vehicle manufacturers.
The deal follows moves by European governments to ban diesel motor cars and announcements by China indicating steps to reduce pollution and promote cleaner energy transport.
Shares in Pilbara Minerals climbed 1.3% to close at $0.54 on Thursday before the ASX announced the company will be placed under a trading halt.
Shares in West Australian miner have shot up in the past month, climbing rapidly from $0.35 cents on August 29.
Pilbara Minerals wasn't the only lithium miner to enjoy gains on Thursday's trade.
The Galaxy Resources Limited (ASX: GXY) share price gained 1.63% to close on Thursday at $2.49.
And Orocobre Limited (ASX: ORE) shares rose 2.91% to end the day at $4.25.
