(Yicai Global) July 23 -- A unit of Chinese lithium battery maker Shanshan is upping its stake in Australia's Altura Mining to hold a total of 19.4 percent of the latter's equity to secure raw materials. 

Yongshan Trading will buy 200 million of Altura's shares for AUD0.112 (8 US cents) each, paying AUD22.4 million (USD15.7 million) in total, the Ningbo-based parent said in a statement. The pair penned a preliminary procurement agreement for Yongshan to buy 6 percent of Altura's lithium oxide from this year to 2021.

The equity deal will help Shanshan to reduce its reliance on buying lithium salts from external partners, the firm added. In June, Shanshan bought 11.8 percent of Altura's equity for AUD0.10 (7 US cents) each from Furui Holdings.

Perth-based Altura started constructing the Pilgangoora hard-rock open pit lithium mine in Western Australia in March. The project can produce 440,000 tons of spodumene concentrate annually after completion, the statement added. Altura had a net loss of AUD11 million in the second half of last year on an operating income of AUD450,000.

Altura's [ASX: AJM] stock price rose 4.6 percent this morning to AUD0.12. 

Shanshan's [SHA:600884] share price is nearly unchanged today at CNY11.2 (USD1.60).

Editor: Emmi Laine