EIA Approval Sought for $500M Battery Recycling Plant in Lingang, China

On June 24, Cangzhou Mingzhu announced that certain of the Company's investment projects have been put into operation. Specifically, among the "200 million square meters per year wet‑process lithium‑ion battery separator project" undertaken by the Company's second‑tier subsidiary, Wuhu Separator, the remaining production line (with an annual designed capacity of 100 million square meters) has commenced production; and among the "500 million square meters per year dry‑process lithium‑ion battery separator project" undertaken by another second‑tier subsidiary, Mingzhu Lithium Battery, the remaining three production lines (with an aggregate annual designed capacity of 300 million square meters) have also commenced production. As a result, both of the above projects have now been fully completed, which will increase the Company's overall production capacity for lithium‑ion battery separator products and enhance its market share and competitiveness.

On June 26, Xiamen Tungsten New Energy announced that the Company plans to establish a new wholly‑owned subsidiary in Hong Kong, namely Xiamen Tungsten New Energy (Hong Kong) Co., Ltd., and through this subsidiary, together with EMI, to set up a holding subsidiary in Malaysia via a joint venture. The project involves an investment of approximately USD 64.58 million (equivalent to about RMB 450 million) for the construction of a 10,000‑ton‑per‑year lithium‑ion cathode material project. The funding for the project will come from the Company’s own funds and self‑raised funds, with the construction period scheduled from September 2026 to June 2027. This investment is intended to improve the overseas production capacity layout and meet overseas market demand. It does not constitute a related‑party transaction or a major asset reorganization.

On June 26, Sichuan Development Lomon announced that its wholly-owned subsidiary, Deyang Sichuan Development Lomon, had previously planned to establish a wholly-owned subsidiary in the Xinshi Chemical Industrial Park in Mianzhu City, Sichuan Province, to invest in and construct a 100,000-ton-per-year lithium iron phosphate (LFP) project. However, in view of changes in market conditions and in order to optimize resource allocation, and after comprehensive consideration of the actual implementation conditions and other relevant factors, the Board of Directors, following prudent deliberation, approved the termination of the establishment of the wholly-owned subsidiary by Deyang Sichuan Development Lomon. As of the date of this disclosure, the above investment had not been substantively initiated or implemented. The termination of this investment will not have an adverse impact on the Company, and there is no harm to the interests of the Company or its shareholders as a whole.