SMM8: Guanghua Science and Technology announced that it has signed a strategic cooperation agreement with Tianjin Lishen Battery Co., Ltd. based on the importance of explosive growth and recycling in the lithium-ion battery industry, the two sides are based on the concept of common development and win-win cooperation. Cooperate in the business of recycling and disposal of waste batteries, recycling of battery materials, cascade utilization of retired batteries, afterloading Huan Neng system, battery management system development, etc., to jointly create a comprehensive strategic cooperation model for closed-loop and high-value utilization of the lithium-ion battery industry chain. Through the cooperation between the two sides, we can achieve the organic unity of economic benefits, environmental benefits and social responsibility, and establish a model of lithium-ion battery recycling and recycling economy, which is conducive to jointly contribute to the healthy development of China's lithium-ion battery industry.
Cooperation content:
(1) Cooperation in the recycling of waste and waste batteries
The two sides cooperate in the field of waste lithium-ion batteries and battery waste recycling to jointly build a closed-loop industry chain for waste lithium-ion battery recycling.
Party A shall hand over its waste battery cell, module, pole sheet and decommissioned power battery pack to Party B for disposal, Party An and Party B shall jointly build a waste lithium-ion battery recycling network, Party A shall be responsible for orderly recycling of waste lithium-ion battery, and Party B shall be responsible for standardized treatment.
(2) the pricing of waste lithium-ion batteries and wastes shall be determined by both parties through consultation according to comprehensive factors such as market situation, battery residual value and disposal cost. Party An and Party B can agree on pricing rules with reference to the metal market of Shanghai Nonferrous Metals Exchange (ttps://www.smm.cn/).
Party B becomes the supplier of battery materials for Party A, and under the same conditions, Party A gives priority to purchasing Party B's lithium battery basic materials (nickel sulfate, cobalt sulfate, manganese sulfate, lithium carbonate, etc.), precursors (including ternary precursors, ferric phosphate, etc.) and cathode materials (lithium iron phosphate, etc.). If Party B's products can pass the testing and certification of the third party approved by Party A, the two parties will consider three ways of cooperation: 1) Party A will sell waste lithium-ion batteries and waste to Party B. party B provides Party A with corresponding battery materials; 2) Party A provides waste lithium-ion batteries and wastes and entrusts Party B to process them into battery materials; 3) establish a recycling joint venture company, deeply bind the industrial chain cooperation, and achieve long-term co-operation.
4 for the materials provided by Party A for battery recycling, Party B shall not sell the corresponding materials to a third party at will unless Party An expressly gives up the purchase.
(2) Cascade utilization of B battery and cascade battery the two parties cooperate in the field of B battery and cascade battery to solve the problem of disposal of inferior products and decommissioned inferior products of Party A, so as to maximize the value of both parties. The two sides negotiate to determine the reserve price with reference to the market situation, and Party A will fully provide the B product battery and the echelon utilization battery to Party B with the guaranteed floor price, and Party B shall form the echelon utilization product and sell it. After deducting the corresponding cost, the profits will be distributed by both parties according to a certain proportion.
(3) after-loading performance improvement-Huaneng system service partners cooperate to carry out afterloading battery performance improvement service-Huaneng system to comprehensively solve the after-sales service pain points of Party A's installed batteries. The vehicles that are equipped with Party A's battery in the early stage, have mileage attenuation and require Party A to bear the responsibility for rectification and reform shall be handed over to Party B to provide Huaneng service.
(4) the two partners of the new battery system cooperate in the field of battery system, making use of Party B's advanced BMS technology and Party A's mature PACK technology to jointly develop a new battery system to create a domestic power battery system and energy storage system with high performance-to-price ratio.
Impact on the company:
(1) the Strategic Cooperation Agreement is in line with the national policy and the company's long-term strategic development plan, and if the project in the cooperation agreement can be successfully implemented, it will be beneficial to give full play to the company's comprehensive business advantages, effectively enhance the company's development in the field of waste power battery recycling, and have a positive impact on the company's future business performance, which is in line with the company's development strategy and the interests of all shareholders.
(2) to realize the organic unity of economic, environmental and social benefits through the cooperation of both sides, and to establish a model of power battery recycling and circular economy is of great significance for the company to build a leading power battery recycling mode and recovery capacity.
