The company signed a binding agreement with Dynavolt Renewable Energy Technology Co, a subsidiary of Shenzhen-listed Guangdong Dynavolt Renewable Energy Technology Co.

Dynavolt will subscribe for 10 million MetalsTech shares at A30c per share to raise $3 million.

MetalsTech will also introduce the company to third-party shareholders and advisors with a view to secure up to another 5 million shares for Dynavolt.

If Dynavolt increases its stake in MetalsTech to above 12.5%, it will earn the right to participate in other placements and match any other project-level investment by a third party in the next 12 months.

MetalsTech executive chairman Russell Moran said Dynavolt was the battery supplier of choice for companies like BMW, Ducati, Suzuki and Kawasaki.

“They recently invested more than 3 billion yuan in building a high-end lithium battery division and we are excited at the opportunity of working closely with them as we seek to position ourselves as a valuable source of raw and refined lithium materials,” he said.

MetalsTech has also raised $1.8 million in a heavily oversubscribed placement at the same price.

The Dynavolt deal comes around five weeks after MetalsTech agreed to sell 10% of the company to Shenzhen-listed Wuxi Baichuan Chemical Industrial Co via a placement at 18c per share.

The company’s flagship asset is the Cancet lithium project in Canada, with its cobalt assets in Ontario currently being spun out into a new entity called iCobalt.

MetalsTech has been one of the more successful floats of 2017, listing in February at 20c and rising to as high as 40c on November 1.

Shares closed 8.9% higher at 30.5c.