To enhance its competitiveness and cope with the industry's competitive landscape, on July 20, 2022, GEM and Xia Tungsten New Energy signed the Agreement on Cooperation and Development of New Generation Ternary Precursor Products (hereinafter referred to as the "Cooperation Agreement"). According to the cooperation agreement, GEM shall design and develop new-generation precursor products according to the agreed schedule and supply a total of 455,000-540,000 tons of ternary precursor products to Xia Tungsten New Energy from 2023 to 2027.

In the context of the booming development of the new energy vehicle industry, the demand for ternary precursors, as the core raw materials of ternary cathode materials, is growing rapidly. GEM is a participant of the concept of "limited resources, unlimited recycling" industry and the pioneer of China's "urban mining" industry. GEM is the world's core enterprise for lithium, cobalt, and nickel resources recycling, power battery recycling, ternary precursor， and cobalt oxide materials manufacturing. The company's main products, high nickel ternary precursor and cobalt oxide  represent the highest quality products in the world. GEM is the world's advanced green and low-carbon enterprise; Xia Tungsten New Energy is a leading enterprise in China's new energy materials industry and a significant manufacturer in the lithium-ion battery cathode material field worldwide. Its products include lithium cobaltate, ternary materials, precursor, and entire series of new energy materials. Their products are widely served by well-known battery manufacturers at home and abroad, such as Panasonic, Samsung, ATL, BYD, and the market share is among the best in the industry.

The cooperation agreement signed by GEM and Xia Tungsten New Energy Materials explored the model of global green new energy industry development mode and co-constructed a win-win strategic cooperation system. The agreement is conducive to consolidating the core position of both parties in the global new energy industry chain and further enhancing the core competitiveness and sustainable profitability of all parties. The agreement is in line with the strategic development interests of both parties and the interests of the majority of investors; It is conducive to achieving the visionary target of 500,000 tons of precursor sales by 2026 and enhancing the company's influence in the global new energy industry. GEM and Xia Tungsten New Energy will join hands to build a world-class low-carbon industry and contribute to the world's green development and the new energy commercialization of Chinese enterprises.