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On September 12th, Guoxuan High Technology Co., Ltd. (hereinafter referred to as "Guoxuan High Technology") and Jiangxi Special Motor Co., Ltd. (hereinafter referred to as "Jiangte Motor") signed a strategic cooperation agreement in Yichun, Jiangxi. According to the agreement, Jiangte Electric will supply Guoxuan Hi-Tech with no less than 500 tons/month of battery grade lithium carbonate. In addition, the two sides will explore more cooperation possibilities in the fields of battery grade lithium carbonate production and supply, energy storage, and new energy motors.

Jiangte Electric Machinery Co., Ltd. is a leading company in the production of lithium carbonate using lithium mica concentrate as raw material in China, with an annual output of lithium salt exceeding 30000 tons. It has formed a relatively complete new energy industry chain of lithium mineral resource mining and processing, and lithium carbonate processing. According to the agreement, Jiangte Electric Co., Ltd. will supply Guoxuan Hi-Tech with no less than 500 tons of battery grade lithium carbonate per month at the negotiated price, subject to the production capacity. After the cooperation between the two parties is stable, it will also increase the supply of battery grade lithium carbonate. In addition, the two sides have also relied on their respective competitive advantages to explore cooperation in energy storage, new energy motors, and other fields, achieve strong alliance, and extend the industrial chain.

Behind this move, Guoxuan High Technology has continuously increased its layout in Yichun. On March 24th of this year, Guoxuan High Technology and Yichun Municipal People's Government signed an investment cooperation agreement in Hefei, where the two sides signed contracts on the establishment of a joint venture mining company and the landing of industrial park projects. On May 22nd, the Yichun Lithium New Energy Project of Guoxuan Hi-Tech was officially launched in Yichun Economic and Technological Development Zone, and multiple subprojects within Yichun jurisdiction have been put on the agenda.

On August 3rd and 4th, Guoxuan High Technology Co., Ltd. officially signed contracts with the People's Government of Yifeng County and the People's Government of Fengxin County in Yichun City, respectively. The lithium carbonate project invested and constructed by Guoxuan High Technology in Yifeng and Fengxin was officially launched. It is reported that the project has reached its full capacity and is expected to produce 100000 tons of lithium carbonate annually, with an annual output value of over 10 billion yuan.

According to the agreement, the lithium electricity material comprehensive development project in Yifeng County is located in Yifeng Industrial Park, covering an area of 600 mu, and is constructed in two phases. The first phase mainly includes the preparation of 20000 tons of lithium electricity material and the comprehensive development and utilization of 3 million tons of mining and beneficiation annually, while the second phase mainly includes the preparation of 30000 tons of lithium electricity material and the comprehensive development and utilization of 5 million tons of mining and beneficiation annually. The project has reached its full capacity and is expected to achieve an annual output value of 5 billion yuan. The first phase of the project will commence in the third quarter of this year and be put into production by the end of 2022.

The Fengxin County New Energy Materials Comprehensive Development Project is located in the Fengxin High and New Technology Industrial Park, covering an area of 600 mu, and is constructed in two phases. The first phase mainly includes the preparation of 20000 tons of lithium electrical materials and the comprehensive development and utilization of 3 million tons of mining and beneficiation annually, while the second phase mainly includes the preparation of 30000 tons of lithium electrical materials and the comprehensive development and utilization of 5 million tons of mining and beneficiation annually. The project has reached its full capacity and is expected to achieve an annual output value of 5 billion yuan. The first phase of the project is planned to commence within the year and be completed and put into production within 18 months.

Zhang Hongli, Vice President of the General Institute of Industry and Research of Guoxuan High Technology, stated that this strategic signing is another major measure for Guoxuan to take root in Yichun and distribute upstream raw materials, which means that Guoxuan High Technology and Jiangte Electric Machinery have formed a partnership in the lithium battery industry chain to jointly create a competitive advantage in the lithium battery industry chain, ensure the stable supply of raw materials from the supply side, while reducing long-term procurement costs, and "make refined iron and lithium, strengthen three yuan, and expand energy storage" for Guoxuan High Technology, And effectively guarantee the supply of 300GWh production target by 2025.

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