(Yicai Global) Sept. 6 -- Shares of Yahua Industrial Group rose after the Chinese supplier of Tesla and BYD joined hands with Australia's Eastern Iron to develop lithium projects.

Yahua's stock price [SHE: 002497] jumped by the daily limit of 10 percent to CNY35.93 (USD5.60) intraday.

The Chinese firm's unit and the Australian mineral exploration company have inked a memorandum of understanding to form a joint venture to develop and acquire projects involving spodumene and other lithium resources, the New South Wales-headquartered company said in a statement today.

The first joint undertaking is the Trigg Hill lithium and tantalum project in western Australia. The pair will further pen a strategic partnership agreement to advance their plan within three months. The JV could acquire other projects in Australia or in other countries, except for China.

The Sichuan province-based civil explosives maker will be prioritized in gaining resources from the JV's assets, including those of the first one.

Founded in 2001, Yahua is expanding its lithium capacity to serve carmakers and energy corporations. Currently, it produces 43,000 tons of lithium carbonate per year.

Editor: Emmi Laine, Xiao Yi