Samsung SDI and CATL supplier GEM starts mass production of quaternary precursors

Recently, GEM responded to investors on the investor interaction platform, revealing that GEM's NCMA quaternary precursor products are undergoing customer ton certification and have begun mass production according to customer demand. In addition, in terms of consumer electronic material recycling, China will usher in a wave of replacement of old home appliances in the next three years. With the national home appliance ownership exceeding 2.1 billion units, GEM will be well connected with the scrapping and disposal of a large number of home appliances, providing strong guarantees for the stability and development of the company's performance.

GEM's main business is the recycling of waste cobalt, nickel and tungsten resources and electronic waste, as well as the production and sales of cobalt and nickel powder materials, battery materials, tungsten carbide, gold, silver and other rare and precious metals. Its customer base includes Samsung SDI, South Korea's ECOPRO, CATL and a large number of internationally renowned battery industry chain companies.

On the investor interaction platform, an investor asked what was the equipment utilization rate of GEM during the transformation of its high-nickel ternary precursor production line into a high-nickel quaternary precursor production line. At a time when the company is raising funds to build a new high-nickel ternary precursor production line, how does the company view the prospects of NCMA batteries launched by General Motors and LG Chem?

In this regard, GEM stated that as a leading company in the field of global power battery recycling and new energy battery material manufacturing, the production capacity of power battery ternary precursors reaches 100,000 tons/year, of which the production capacity of high-nickel and single crystal high-end products reaches more than 90%. The company's existing production system is fully capable of meeting the production needs of NCMA quaternary materials. The increase in the nickel (Ni) content in the ternary precursor material can effectively increase the battery energy density, thereby helping to improve the range of new energy vehicles, which is a future development trend. However, when the nickel content is increased to a certain level, its stability will be affected. The NCMA quaternary precursor material developed by the company can improve the high energy density of the ternary precursor material while ensuring its stability, meeting the future new energy vehicle's demand for high energy density and high safety. It is precisely because of the excellent performance of the NCMA quaternary material that it represents the future development direction of power battery materials and is increasingly favored by world-renowned battery manufacturers. The company's NCMA quaternary precursor products are undergoing customer tonnage certification and have begun mass production according to customer needs!

It is reported that GEM has fully introduced the supply chain of world-renowned battery manufacturers, actively built a global power battery industry chain cooperation model, and will actively promote the industry chain and value chain cooperation with domestic leading enterprises and Japanese, European and American enterprises. Through the industry chain, circulation chain and value chain cooperation, it will carry out full-range strategic cooperation in production capacity, resources, capital, market, etc., explore various win-win models, and promote the stability of the company's market and value chain. However, given the company's confidentiality obligations to customers, GEM did not disclose the specific supply targets.

GEM focuses on building the new energy full life cycle value chain of "battery recycling - raw material recycling - material recycling - battery pack recycling - new energy vehicle services", actively constructs a "1+N" waste battery recycling and utilization network, and creates a national recycling and utilization network system of "ditches, rivers and seas". It has signed automotive power battery recycling and processing agreements and cooperated with more than 180 automobile companies and battery companies, realizing a green model for the full life cycle of the new energy vehicle industry chain from "green to green".

At present, GEM has built three green disassembly lines for waste power battery packs in Wuhan, Jingmen and Wuxi, which can process 250,000 sets of waste power battery packs annually. The company's waste battery recycling volume accounts for 10% of China's total scrapped batteries. The company's annual demand for cobalt metal and nickel metal equivalents is more than 50,000 tons. The company fully guarantees the safety of the raw material supply system by actively implementing the dual raw material strategic channel of "urban mines + strategic cooperation with international giants" for cobalt and nickel raw materials. On the one hand, the company has been deeply involved in the recycling of cobalt and nickel resources for many years, and has the technical advantages and raw material advantages of recycling cobalt and nickel resources and the core manufacturing of related high-tech products. It recycles more than 5,000 tons of cobalt metal and more than 10,000 tons of nickel metal annually, effectively ensuring the demand for cobalt and nickel resources for the growth of new energy materials business. Relatively speaking, the cobalt and nickel metals obtained through recycling have certain cost advantages. On the other hand, the company has established a stable cobalt and nickel raw material supply relationship with international mining giants such as Glencore, MCC Ramu, and Trafigura, ensuring the strategic supply of cobalt and nickel raw materials.

It is understood that since its listing, GEM's revenue has increased from 570 million yuan to 14.4 billion yuan, and its net profit has increased from 35 million yuan to 740 million yuan. From a small waste battery recycling company to a national innovation platform and a 10 billion recycling industry project, GEM has successfully achieved business innovation and upgrading.