On the morning of June 28, 2022, the signing ceremony for the introduction of strategic investment and mixed-ownership reform of Wuhan Power Battery Regeneration Technology Co., Ltd. (hereinafter referred to as "Power Regeneration") was held in GEM Wuhan Industrial Park. More than ten strategic companies such as State-owned Investment Platform of Wuhan Xinzhou District, CITS Investment and VIRTUE Capital, upstream and downstream partners of the industrial chain, such as SDIC, VOYAH, GAC Commerce and Trade, and Professor Xu Kaihua, Chairman of GEM, Ms. Wang Min, co-founder and director of GEM, attended the signing ceremony.

Power battery recycling has always been a hot issue in the global new energy industry, and it is also the next outlet for the development of the global new energy industry.

Driven by the goal of "carbon emission peak and carbon neutrality", China's new energy vehicles have delivered a report card of booming production and sales. In the 2021, my country's new energy vehicle production and sales volume were 3.521 million units, a year-on-year increase of 60%, showing an explosive growth that exceeds expectations, with a market penetration rate of 12.9%. The annual installed capacity in 2021 will be 154.5GWh, a year-on-year increase of 142.8%. The rapid development of the new energy vehicle industry has become an inevitable trend that cannot be reversed. However, cobalt, nickel and lithium resources, the key raw materials of power batteries in my country, are very scarce. Among them, 96.8% of cobalt resources are imported, 90.8% of nickel resources are imported, and 66.1% of lithium resources are imported. According to the forecast of China Automobile Data, the demand for lithium, cobalt, nickel and manganese in the new energy vehicle industry will reach 24,600 tons, 28,500 tons, 71,000 tons and 41,700 tons respectively in 2025. At that time, the recoverable lithium, cobalt, nickel and manganese resources will account for about 58%, 62%, 70% and 42% of the corresponding demand, respectively. It can be seen that power battery recycling can greatly alleviate the situation of my country's dependence on imports of raw materials. It is estimated that by 2025, my country's battery recycling volume is expected to exceed 1 million tons, and the industry scale will exceed 200 billion. This means that the battery recycling industry will enter the best time to develop.

Wuhan Power Battery Recycling Technology Co.,Ltd. is a wholly-owned subsidiary of GEM Co., Ltd. It has five power battery recycling bases in Wuhan, Wuxi, Shenzhen, Tianjin and Jingmen. Since 2015, Power Regeneration had pioneered the concept of a new energy full life cycle value chain, and built a green supply value chain of "battery recycling，raw material recycling，material recycling，battery pack recycling，reuse and cascade utilization， and global nickel-cobalt products Green supply chain. So far, it has established strategic cooperative relations with 550 well-known new energy vehicle and battery manufacturers at home and abroad. It is estimated that by 2026, the quantity of company's power battery recovery will exceed 300,000 tons, and 30,000 to 50,000 tons of rare resources such as cobalt and nickel can be recovered. The cascade utilization mode are applied on a large scale, and the comprehensive utilization output value is about 10 billion, which can realize the full life cycle and value of battery materials。

Six years ago, when the global new energy was still in its infancy, GEM proposed to build a new energy full life cycle value chain. And solve the value recovery of power battery life cycle decline and the recycling of resources after power regeneration is scrapped. Serving the new energy era and promoting the development of global new energy from "green" to "green".

In the past 6 years, GEM has invested nearly 1 billion yuan, Facing the challenge of the key technical problems of the global new energy industry. With strong faith, GEM has successively conquered the non-destructive dismantling technology of power battery recycling, digital sorting and capacity separation technology, and cascade utilization remanufacturing technology and marketization issues of cascade utilization products. Up to now, Power Regeneration has built a world-leading the production line of power battery recycling and release in Wuhan. Three companies under Power Regeneration have been selected into the list of enterprises in the Ministry of Industry and Information Technology's "Industry Standard Conditions for Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles", which ranks first in the country and establishing first-mover advantages and technological leadership in the global industry. The company actively carries out independent innovation, and has established a core technology system and standard system for the recycling of waste batteries. It has applied for more than 330 core patents in the key technical links of the power battery life cycle, and participated in the formulation of more than 70 national/industry standards. The project of "Innovative Model of Urban Waste Battery Recycling" successfully won the 2020 "Paulson Sustainability Award - Green Innovation Category" award. In the past 6 years, the company has invested nearly 1 billion yuan, Facing the challenge of the key technical problems of the global new energy industry. With strong faith, the company has successively conquered the non-destructive dismantling technology of power battery recycling, digital sorting and capacity separation technology, and cascade utilization remanufacturing technology and marketization issues of cascade utilization products. Up to now, the company has built a world-leading the production line of power battery recycling and release in Wuhan. Three companies under Power Recycling have been selected into the list of enterprises in the Ministry of Industry and Information Technology's "Industry Standard Conditions for Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles", which ranks first in the country and establishing first-mover advantages and technological leadership in the global industry. The company actively carries out independent innovation, and has established a core technology system and standard system for the recycling of waste batteries. It has applied for more than 330 core patents in the key technical links of the power battery life cycle, and participated in the formulation of more than 70 national/industry standards. The project of "Innovative Model of Urban Waste Battery Recycling" successfully won the 2020 "Paulson Sustainability Award - Green Innovation Category" award. The completion of "Key Technology Project of Closed-Circuit Recycling of Retired Power Lithium Batteries" conjunction with Tsinghua University won the 2021 Hubei The first prize of the Provincial Technology Invention Award. In April 2021, the "closed loop value chain of power battery life cycle" was recommended by the Ministry of Industry and Information Technology as a typical case in the "13th Five-Year Plan". In December 2021, the "flexible and intelligent dismantling system for retired power battery packs" was successfully selected into the book” Catalogue of Advanced Applicable Process Technology Equipment Catalog (which is edited in 2021)" jointly issued by the four ministries and commissions.

The main capital introduced in this strategic investment includes more than 10 investment entities such as team shareholding platforms, government investment platforms and social capital investment platforms, with a total of hundreds of millions of yuan in financing. This not only played a role in motivating the core team, but also won the favor of the government and social capital, providing a strong momentum for the company's development. This also fully shows that the power regeneration business meets the expectations of the majority of investors for the development of the power battery recycling industry. The introduction of strategic investment will definitely help the company grasp the value outlet of the power battery recycling industry. And it can quickly transform technological advantages, recycling system advantages and industrial advantages into scale advantages, position advantages and benefit advantages.

At the signing ceremony, Chairman Xu Kaihua said in his speech that we have a good wish for power regeneration - to create the world's largest power battery recycling enterprise. We will start from Wuhan, open the power regeneration banquet from Wuhan to South Korea, Europe, and even the United States, and strut to the world. As long as there is new energy, there must be GEM's recycling network and recycling service, and truly promote the world's new energy vehicles from "green" to "green".

Representatives of strategic investors believe that under the background that the recycling and utilization of power batteries for new energy vehicles is about to enter a period of rapid development, GEM has a large cycle model from the end of battery scrap to green consumption. And its power battery recycling products have the distinctive features of complete layout, complete qualifications, advanced technology and excellent management concepts. Power regeneration will certainly be able to make greater contributions to China's circular economy, and will also bring rich returns to investors!

Finally, GEM and representatives of strategic investors carried out the strategic investment introduction and mixed-ownership reform contract of Wuhan Power Battery Regeneration Technology Co., Ltd. The guests witnessed the power battery recycling business set sail and went to the sea of stars.

"Ride the new energy high-speed rail, ride the dual-carbon east wind", the introduction of this strategic investment and the completion of the mixed-ownership reform will promote the company's rapid release of production capacity and expand market occupancy. And it can quickly complete the global power battery recycling industry layout, and achieve the world's largest power battery recycling industry base.

Figure 1. The scene of the signing ceremony of the introduction of strategic investment and mixed-ownership reform

Figure 2. Speech by Professor Xu Kaihua, Chairman of GEM

Figure 3. Speech by representatives of strategic investors

Figure 4. The introduction of the power regeneration war investment and the successful signing of the mixed reform