GEM plans to sign a framework agreement with Pangu New Energy on the supply of sodium battery cathode materials

Global energy is undergoing transformation, and the demand for electrochemical energy storage is booming. With concerns about lithium supply shortages and the growing demand for low-cost energy storage batteries, sodium-ion batteries have achieved rapid development due to their rich resources, high safety, good low-temperature performance, and obvious cost advantages. They have gradually moved from the laboratory to the commercial application stage and will be widely used in energy storage, light travel, small power and other fields.

In order to seize the opportunities of the times, GEM Co., Ltd. (hereinafter referred to as "GEM" or "the Company") and Shenzhen Pangu Sodium Xiang New Energy Co., Ltd. (hereinafter referred to as "Pangu New Energy") agreed to give full play to their respective advantages and carry out strategic cooperation in the entire industry chain of "sodium electric materials-sodium electric power batteries-sodium electric recycling", jointly build a globally competitive sodium electric industry chain, seize the sodium electric market, and jointly expand and strengthen the sodium electric industry. On July 3, 2023, they jointly signed the "Strategic Cooperation and Product Supply Cooperation Framework Agreement on Sodium Battery Cathode Materials" (hereinafter referred to as the "Framework Agreement") on the principle of co-construction, sharing and win-win. In the spirit of strategic cooperation, the two parties will carry out long-term and stable cooperation in product supply and marketing, processing, new product development, innovative strategic cooperation, and the establishment of a sodium electric recycling system. Since the signing of the Framework Agreement GEM products, the two parties expect the supply and demand of sodium battery cathode materials to be about 10,000-15,000 tons/year.

Main content

Signing entity:

Party A: Shenzhen Pangu Sodium New Energy Co., Ltd.

Party B: GEM Co., Ltd.

(Party A, Party B, collectively referred to as the “Parties”)

1. Areas of cooperation between the two sides

1. Product supply and marketing: The two parties will establish a long-term supply and marketing relationship for sodium battery positive electrode materials. Under equal market conditions, the product demand of Party A will be guaranteed first and the supply will be guaranteed in both quality and quantity.

2. Product processing: The two parties will cooperate on the processing of positive electrode materials for sodium batteries.

3. New product development: The two parties shall establish a product development exchange mechanism, whereby Party A shall convey its new product development requirements to Party B, and Party B shall develop the product in accordance with Party A’s requirements. Specific requirements shall be implemented in accordance with the specific cooperation agreement signed by both parties and a confidentiality agreement shall be signed.

4. Strategic cooperation in innovation: The two parties agree to rely on each other's innovation platforms to carry out research on innovative projects such as sodium batteries and sodium materials, use each other's advantages to jointly build innovation platforms, jointly strive for and carry out national, provincial and municipal innovation and entrepreneurship projects, and jointly promote the technological progress and industrialization of ternary sodium battery industry.

5. Establishment of a sodium-electricity recycling system: The two parties agree to further deepen cooperation, actively explore the technical development and strategic cooperation of the sodium-electricity recycling system, fill the technological and industrialization gaps in the global resource utilization of sodium batteries, and jointly create a globally competitive sodium-electricity supply chain and value chain.

6. Information cooperation: Establish an effective communication mechanism to mutually transmit domestic and foreign industry-related information and share what we have.

7. The two parties recognize each other as strategic partners on a global scale and actively promote each other to jointly build a good global brand and reputation for both parties.

(II) Cooperation methods

1. In the spirit of strategic cooperation, the two parties will carry out long-term and stable cooperation in product supply, marketing and processing, and strive for balanced monthly purchase and sales. From the date of signing and effectiveness of the framework agreement to December 31, 2025, under the same market conditions, Party A will give priority to purchasing Party B's products. The two parties estimate that the supply and demand of sodium battery positive electrode materials will be approximately 10,000-15,000 tons/year.

2. The two parties will sign a purchase and sales contract, processing contract, purchase and sales order, etc. (collectively referred to as the "Transaction Contract") in the subsequent cooperation to further clarify the rights and responsibilities of each party. Both parties shall strictly abide by the relevant contractual provisions and safeguard each other's legitimate rights and interests.

3. Both parties negotiate to maintain a high degree of communication and mutual trust in the development of sodium battery application scenarios and not compete with each other. In case of overlap in business, both parties can combine their advantages to form a joint force and jointly develop sodium battery application scenarios.