Guanghua Technology and Metro cooperate strategically to build a waste power battery recycling and processing system

Guangdong Guanghua Technology Co., Ltd. (hereinafter referred to as "the Company" or "Party B") signed a "Strategic Cooperation Agreement" with Ground Metro Car Rental (Shenzhen) Co., Ltd. (hereinafter referred to as "Ground Metro" or "Party A") in Shenzhen on March 31, 2022. The two parties are committed to building a waste power battery recycling and processing system, reducing the harm to the environment caused by random abandonment through compliant and legal recycling, disassembly, and remanufacturing of waste power batteries, and jointly exploring comprehensive energy revitalization service solutions for restoring the range of operating vehicles, and jointly building regionally distributed new energy vehicle power battery comprehensive maintenance service stations to achieve the coordinated development of economic and social benefits, thereby accelerating the construction of a reverse circulation system for power batteries.

Cooperation Content

1. Recycling and utilization of retired power batteries of new energy vehicles (including cascade and recycling)

Party A will hand over the retired power batteries of operating vehicles that have reached the scrap period and the batteries replaced during daily maintenance to Party B for compliant recycling. Party B will conduct a comprehensive test on the batteries to select the cells, modules or whole packs that can be reused, and manufacture different types of battery packs for reuse through repacking, which will be used in industrial energy storage, special vehicle power systems, backup power supplies, household energy storage, etc. For the remaining scrapped batteries that cannot be reused, Party B will use the leading hydrometallurgical process technology for harmless recycling, and the output products will enter the closed loop of the new energy vehicle power battery industry.

2. Comprehensive energy recovery service program for restoring the range of operating vehicles

Party B and its subsidiary (Zhongli New Energy) use the highly efficient active balanced battery management technology independently developed to precisely create a battery after-sales performance improvement service plan to address the range degradation problem that occurs after new energy vehicles have been running for a certain period of time, and provide Party A with a more cost-effective and reliable operating vehicle range recovery solution, saving after-sales service costs and improving vehicle operating efficiency.

3. Jointly build a regional comprehensive maintenance service network for new energy vehicle power batteries

Relying on Party A's existing vehicle maintenance sites and utilizing Party B's technical accumulation in the management of new energy vehicle power batteries, the two parties jointly explore the establishment of a national comprehensive automotive power battery maintenance service network, which will serve Party A's own vehicles while providing comprehensive battery maintenance services for social vehicles.