Dangsheng Technology plans to set up a joint venture with Finnish Mining Group to be responsible for the European new materials industry base project.

When 300073.SZ announced that on November 8, 2021, the company signed "TERM SHEET of Shareholders' Agreement for investment in CAM plant" ("letter of intent") with Finnish Minerals Group (Finland Mining Group ("FMG") and its wholly-owned subsidiary Finnish Battery Chemicals Oy (Finland Battery Chemicals Co., Ltd. ("FBC") in Beijing and Helsinki respectively. The three parties agreed to set up a joint venture in Finland in the form of joint investment, in which Dangsheng Technology (through its affiliated entity) intends to hold a 70 per cent stake in the joint venture, and FMG intends to hold a 30 per cent stake in the joint venture through its wholly-owned subsidiary FBC, which can be contributed in installments according to the project process. The type of joint venture company is a limited liability company, which is mainly engaged in the production and sales of cathode materials.

It is reported that the joint venture company will be responsible for the construction and operation of Dangsheng Technology European New Materials Industry Base Project (hereinafter referred to as "European Project" or "this Project"). The company's European project plans to build the first production base of high-nickel power lithium cathode materials with an annual output of 100000 tons in Finland. Among them, the first phase of the first phase with an annual production capacity of 50,000 tons of high-nickel cathode materials is expected to be completed and put into production in 2024. The total investment in the first phase of the first phase is about 500 million euros (equivalent to about 3.9 billion yuan, and the final investment is subject to the conclusion of the feasibility study), which comes from the company's self-raised funds. In the first phase of the first phase, the three parties may contribute in stages according to the progress of the project, and the specific contents will be negotiated separately by the parties.

This time, the company will join hands with Finnish Mining Group and Finnish Battery Chemicals to jointly invest in the construction of the company's European lithium new material industry base, which will help the company to accelerate the global production capacity layout and further expand the company's overall capacity scale. to meet the growing demand of overseas customers for the company's products. At the same time, the company's cooperative investment with European resources enterprises will help the company to give full play to its own advantages, make full use of local resources, support European local car companies and battery enterprises, and integrate deeply into the European electric vehicle industry chain. continue to expand the company's market share in Europe. In the future, the company's European base will be based in Europe and face the world, providing high-end power lithium cathode materials to European and global car companies and battery customers, so as to lay a solid foundation for the company to participate in the global electric vehicle industry chain cooperation and maintain market leadership.