Tianneng Power and Taihu Energy Valley Signed a Strategic Cooperation Agreement on Energy Storage Project

Based on the technological advantages of the Company and Changxing Taihu Energy Valley Technology Co., Ltd. (hereinafter referred to as "Taihu Energy Valley") in their respective products and application fields, and in accordance with the principles of equality, mutual benefit and complementary advantages, after friendly negotiations between the two parties, on December 12, 2022, the two parties reached a strategic cooperation intention that Taihu Energy Valley will use a total of no less than 30Gwh of the Company's lead-carbon battery cells in its energy storage projects (including the Company's affiliated production bases) in the next three years, and signed the "Strategic Procurement Cooperation Agreement for Energy Storage Projects" (hereinafter referred to as "this Agreement").

Main contents of the framework agreement

1. The two parties to the cooperation

Party A: Tianneng Battery Group Co., Ltd.

Party B: Changxing Taihu Energy Valley Technology Co., Ltd.

2. Cooperation Background

With the promotion of policies, the progress of new energy technologies and the expansion of production capacity, the development model of energy storage in various links in my country has gradually become clear. Affected by driving factors such as ensuring power supply stability and reducing comprehensive electricity costs, my country's industrial and commercial users have an urgent need to configure energy storage. In order to solve the problem of overcapacity of industrial and commercial enterprises, improve the safety of enterprise electricity use and the quality of electricity, and help enterprises optimize the power structure, the two parties, based on long-term strategic considerations, in line with the principles of equality, voluntariness, mutual benefit and win-win cooperation, decided to work together to accelerate the market application of lead-carbon energy storage.

(III) Contents of cooperation

3.1 Party A agrees that Party B will provide energy storage services for Party A's subordinate production bases, including but not limited to production bases in Zhejiang, Jiangsu, Henan, Anhui and other places.

3.2 Party B agrees to invest for Party A (such as Party A's production bases in Jiangsu, Zhejiang, Henan, Anhui, etc.) or introduce other third parties to jointly invest in the construction of supporting energy storage power stations (not exceeding 3GWh in total) to reduce electricity costs for Party A's subsidiaries. Party A or its subsidiaries shall not bear the funds and expenses for project construction.

3.3 Party A agrees to cooperate with Party B in project evaluation and on-site investigation, and to disclose to Party B the following information including but not limited to: basic information of the enterprise, enterprise electricity consumption information, project relocation location, grid access information, etc.

3.4 In principle, the energy storage power station invested and constructed by Party B will be charged during off-peak hours and discharged during peak hours. Both parties will reasonably distribute the income generated by the peak-to-valley electricity price difference. All other income, including non-electricity income, government subsidies, etc., obtained from the project will benefit both parties and be reasonably distributed.

3.5 Party B agrees that all Party A’s base energy storage projects shall adopt qualified battery cells (lead-carbon batteries) produced by Party A. Party B agrees that other energy storage projects invested and constructed by Party B or its affiliated companies shall give priority to purchasing Party A’s products under the same conditions.

3.6 After the signing of this agreement, Party A shall arrange a dedicated person to cooperate with Party B to promptly start docking with Party A’s various bases to ensure that the various node tasks are promoted within the timetable approved by Party A and Party B (including the investor).

3.7 During the validity period of the Agreement, Party A promises that Party B is its sole partner for energy storage services, and Party B promises not to sign any agreement with other new energy enterprises or enterprises that are in direct competition with Party A with the same cooperation content as this Agreement. Specific investment and construction of energy storage projects are not restricted.