On September 8, GEM's new generation of high-voltage quaternary precursor materials were mass-produced and delivered for the first time in Jingmen Park. The official shipment of GEM's high voltage quaternary precursor materials marked the beginning of the mass production and commercialization of the Company's high voltage quaternary precursor materials, thereby making the Company one of the few companies in the world that are capable of mass-producing high voltage quaternary precursor materials. Following the first mass production and delivery of the Company's latest generation of concentration gradient core-shell precursors on May 30 this year, another major technical achievement of GEM has been commercialized, and GEM remains its technical leading advantage in the industry with technological innovation.

The high-voltage line increases the battery charging cut-off voltage so that the cathode material can shed more lithium ions at higher voltages, thus improving both capacity and operating voltage, and further increasing energy density. By modifying the precursors with special wet doping technology and structural design, the capacity of ternary materials can be significantly increased at high voltages.

As the world's leading supplier of high nickel precursor products for new energy vehicles, GEM has successfully overcome the core technology barrier of high voltage quaternary precursors and adapted high-voltage battery material to the high voltage of 4.4V, through innovative doping and special structural design, by making huge innovative investment and tackling hard-nut technical problems, thereby significantly improving the gram capacity of ternary cathode materials, meeting the high voltage trend of ternary materials, further enriching the Company's high-end precursor product line and ranking in the supply chain of top international enterprises.

In the first half of 2022, GEM invested RMB760 million in R&D, representing an increase of 110.65% YoY. The Company implemented its innovation multiplication plan and super technology research plan, increased R&D investment in key technologies of super material series, gained many technical achievements, and was selected as one of the "50 Smartest Companies " by MIT Technology Review.

This time, GEM has developed high-voltage quaternary precursors and completed mass delivery, by virtue of the R&D team and production team's independent development capacity, courage to overcome difficulties and perseverance, symbolizing that the Company has become a leader in the global industry in terms of technical mass commercialization and truly realized produced high-end products locally in China, as one of the important milestones on the innovation and development route for GEM's new energy materials business; the advantage will strengthen the Company's core market position in the global new energy materials industry, consolidate its market share, continuously enhance its influence in the whole industry chain of the global new energy industry, further improve its core competitiveness and sustainable profitability, thereby effectively promoting the effective implementation of the Company's 2022 precursor sales target, and driving the development of high performance and low carbon of global power batteries.

GEM's R&D team dares to face challenges and overcomes difficulties to achieve self-sufficiency in key technologies. The Company will firmly implement the five-in-one R&D strategy, release more high-end precursor products with high technology and high quality, and build a competitive barrier for its high-end precursor brands! With the gradual transformation of R&D achievements, the Company will further expand its advantages and increase its market share; as its growth potential is gradually developed, the Company will usher in a high growth stage.

Figure 1: GEM's ceremony for the first mass production and delivery of new generation of high-voltage quaternary precursor materials

Figure 2: GEM's new generation of high voltage quaternary precursor materials are being loaded for shipment.