Dangsheng Technology and SK Signed a Strategic Cooperation Agreement to Accelerate the Layout of the Global High-quality Electric Vehicle Industry Chain

On November 15, 2021, Beijing Dangsheng Materials Technology Co., Ltd. (hereinafter referred to as "Dangsheng Technology" or "the Company") and SK Inc. (hereinafter referred to as "SK Corporation" or "SK") signed the "Strategic Cooperation Agreement" (hereinafter referred to as the "Strategic Cooperation Agreement" or "this Agreement") in Beijing and Seoul respectively. The two parties agreed that SK (or its affiliates, investment entities) will invest in Dangsheng Technology's European New Materials Industrial Base with an equity ratio of no more than 30%, and establish a joint venture in South Korea, and if necessary, another joint venture in China, to jointly develop the cathode materials business.

Cooperation Content

(1) European Projects

Dangsheng Technology plans to establish a joint venture company in Finland (hereinafter referred to as the "European Company") with Finnish Mining Group and its subsidiary Finnish Battery Chemicals Co., Ltd. to be responsible for the construction and operation of Dangsheng Technology's European new materials industrial base project. For details, please refer to the "Announcement on the Signing of an Investment Intent Letter with Finnish Mining Group and its Subsidiary Finnish Battery Chemicals Co., Ltd." (Announcement No.: 2021-090) disclosed by the company on Juchao Information Network (www.cninfo.com.cn). Dangsheng Technology (or its affiliates, investment entities) is the controlling shareholder of the European Company. SK Corporation (or its affiliates, investment entities) intends to participate in the investment and construction of Dangsheng Technology's European Company, with an investment ratio of no more than 30%. The specific investment ratio will be negotiated and determined by both parties in the formal investment agreement to be signed later.

(2) Asian Projects

In order to further expand the cathode material business, the two parties agree to jointly invest in a joint venture company in South Korea (hereinafter referred to as the "South Korean Company") to jointly develop the cathode material business. The company type is a limited liability company. As for the South Korean Company, Dangsheng Technology intends to hold no more than 49% of the shares of the South Korean Company, and SK Corporation is the controlling shareholder of the South Korean Company and intends to hold no less than 51% of the shares of the South Korean Company. If it is necessary to establish another joint venture company in China (hereinafter referred to as the "Chinese Company"), as for the Chinese Company, Dangsheng Technology is the controlling shareholder of the Chinese Company and intends to hold no less than 51% of the shares of the Chinese Company, and SK Corporation intends to hold no more than 49% of the shares of the Chinese Company. The two parties agree to establish a wholly-owned subsidiary in the United States directly or indirectly through the South Korean Company in the future to jointly expand the US market business. The source of funds for Dangsheng Technology is self-raised funds.

(3) Product supply cooperation

Dangsheng Technology and the Chinese company (if established) promised to give priority to the Korean company in supplying primary lithium battery cathode materials, and the Korean company promised to give priority to purchasing primary lithium battery cathode materials from Dangsheng Technology and the Chinese company (if established) for supply to the Korean and U.S. markets. At the same time, the two parties agreed to cooperate in the lithium iron phosphate business, and the specific cooperation methods and contents will be negotiated separately in the subsequent signed agreement.