Salt Lake Co., Ltd. and Guoxuan Tech signed a strategic cooperation agreement to cooperate deeply in the fields of new energy, lithium electricity, lithium magnesium materials and so on.

Salt Lake shares announced on the evening of December 13, Qinghai Salt Lake Industrial Co., Ltd. (hereinafter referred to as "Company" or "Salt Lake shares") and Guoxuan Hi-Tech Co., Ltd. (hereinafter referred to as "Guoxuan Hi-Tech") signed the Strategic Cooperation Framework Agreement on December 13, 2021. In order to give full play to the advantages of both sides in the fields of lithium salt extraction and materials processing, manufacturing, research and development of lithium new energy batteries, through friendly consultations, the two sides plan to cooperate deeply in the fields of new energy, lithium power, scientific and technological research and development, lithium-magnesium materials, and personnel training, so as to promote the competitiveness and rapid business development of the two sides in the field of new energy industry.

The main contents of the agreement include: the two sides cooperate to set up a joint venture company to produce positive battery materials such as lithium iron phosphate and energy storage batteries respectively. The proposed joint venture company will hold shares with each other and cooperate deeply to form a stable new energy industry chain system. With the rich magnesium resources of Salt Lake shares and the advantages of industry and market, the two sides will cooperate in the field of new materials such as magnesium-aluminum and magnesium-lithium alloys. The two sides can study the feasibility of establishing a joint venture to establish a new product technology research and development platform in Hefei, and research and develop fine and high value-added lithium industry chain products. The company has a strong research and development team of lithium power new energy, and Salt Lake shares have core key technical personnel in extracting lithium from salt lake with high magnesium-lithium ratio. Both sides can strengthen personnel training in lithium power new energy, form an interactive mechanism, and jointly promote the deep combination of the whole industry chain technology in the lithium power industry.

Salt Lake shares said that the company and Guoxuan Hi-Tech are large enterprises in the development of lithium resources and the research, development, production and manufacture of lithium new energy battery materials. Based on the advantages of lithium salt extraction and lithium battery materials processing, manufacturing, research and development, the two sides plan to cooperate deeply in the fields of new energy, lithium electricity, science and technology research and development, lithium magnesium materials, personnel training and other fields. This agreement is only a framework agreement for strategic cooperation and will not have a significant impact on the company's operating results in 2021. The two sides may discuss and sign other agreements on specific matters relating to co-operation.