Leo Lithium (ASX:LLL) has secured $106M in a strategic placement and cooperation agreement with China's largest lithium producer Ganfeng Lithium.

The collaboration will provide several strategic benefits to Leo Lithium at its Goulamina lithium project in Mali, including increasing its stage two capacity to one mtpa.

The deal also covers a study on cooperation over downstream conversion facilities and further exploration ventures in Australia targeting lithium opportunities.

Leo Lithium's share price is up 11% in early trade.