(Yicai Global) Sept. 29 -- Great Wall Motor Co. [SHA:601633] plans to acquire a stake of up to 3.5 percent in Pilbara Minerals [ASX:PLS], an Australian strategic metals producer, through its indirectly wholly-owned subsidiary to provide resources for its new energy automobile industrial chain.

Yixin Development Co. plans to subscribe to 56 million new shares of Pilbara Minerals at a price of USD0.39 (AUD0.5) per share, the Chinese car manufacturer said yesterday.

After the deal, Great Wall Motor will have a shareholding of up to 3.5 percent in Pilbara Minerals through Yixin Development, the carmaker said.

Pilbara Minerals owns the Pilgangoora lithium project, 120 kilometers South of Port Hedland, Australia. Its first phase is expected to produce 300,000 tons per annum of spodumene concentrate and go into operation in the first half of next year. The second phase is expected to enter production in the first half of 2020.

Following the transaction's completion, Great Wall Motor will have an offtake of 75,000 tons per annum of spodumene concentrate produced by Pilgangoora, the company said.

The two sides also agreed that if Great Wall Motor provides 50 percent of the funding for the construction of the lithium project's second phase, which could be up to USD50 million, they will increase its spodumene concentrate offtake to 150,000 tons per annum.