On April 10, 2024, Wuhan Power Battery Recycling Technology Co., Ltd. a subsidiary of GEM Group, and Yupai Energy Technology, a wholly-owned subsidiary of GAC Group, joined hands to build Guangzhou Youmei Recycling Technology Co. (hereinafter referred to as "Guangzhou Youmei"). Guangzhou Youmei is located in Zhongluotan Town, Baiyun District, Guangzhou City, where after the completion of the first phase, the plant will have a capacity of 20,000 tons/year for battery recycling and disassembly, and a capacity of 10,000 tons/year for black powder recycling of batteries, which is an important initiative for GEM and GAC to implement strategic cooperation and jointly build a new energy life cycle value chain.

Guangzhou Youmei Recycling Project of Waste Power Battery Materials after completion of design sketch

Guangzhou Youmei is an important initiative of GEM and GAC Group to implement the strategic cooperation agreement. On November 29, 2023, GEM signed the "Strategic Cooperation Framework Agreement between GAC Group and GEM on Joint Building of New Energy Full Life Cycle Value Chain" with Guangzhou Automobile Group. Through strategic cooperation, the two sides will jointly build a "new energy vehicle recycling - electric battery recycling - nickel-cobalt lithium battery raw material recycling - battery material recycling - electric battery recycling" on a global scale, leading the industry from "green" to "green".

GEM and GAC signed a strategic cooperation agreement

As the key investment project of Guangzhou City in 2024, Guangzhou Youmei Phase I, with a total investment of RMB 190 million, will integrate the advantageous resources of GEM and GAC Group, and build production lines including battery crushing and sorting, pole piece crushing and selection, black powder wet regeneration, and solid phase refurbishment and regeneration, to realize green recycling, sourcing, and remanufacturing of end-of-life new energy vehicles, used power batteries and their waste, with full life cycle management. Promoting the development of high-quality new energy material regeneration industry, for the advancement of recycling economy industry in Guangzhou City, in order to help the country achieve the dual carbon goal with practical actions.

GEM is utilizing "trade-in" opportunities to enhance its position and competitiveness in the green recycling sector. The year 2024 has begun with the government placing greater emphasis on "trade-in", and related policies and programs continue to be launched.

On February 23, the Central Finance and Economics Committee proposed to promote the trade-in of automobiles, and on March 1, Executive Meeting of the State Council considered and implemented the Action Program for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods, indicating that trade-in of automobiles, home appliances, and other consumer goods should be actively carried out to form a large-scale renewal and upgrade effect.

On April 12, the Ministry of Commerce and 14 other departments jointly launched the "Promoting consumer goods trade-in action plan". This program clearly shows that one of the main tasks is to carry out car trade-in, the requirements of the automotive sector to highlight the attractiveness of standards, increase the recycling and scrapping of end-of-life vehicle systems, and promote the innovative development of automotive circulation and consumption. Zhao Chenxin, deputy director of National Development and Reform Commission, said recently that the demand for automobile replacement and renewal is at a level of more than one trillion yuan, coupled with recovery and recycling, this market space is huge, and its contribution to economic growth is self-evident.

In addition, the Ministry of Ecology and Environment recently published the Solid Waste Classification and Code List, whereby waste electrical and electronic products and waste batteries are explicitly included in the recyclable category for the first time.

GEM recognizes and embraces opportunities to cooperate with major companies in various fields, and has signed cooperation agreements with Midea Group, DFPV Group, and JD Group, joining hands to promote recycling, digital supply chain, and recovery of waste commodities. The implementation of Guangzhou Youmei is an important step for GEM and GAC Group to implement the strategic cooperation agreement, and a powerful initiative for both parties to actively respond to the trillion-dollar automobile line and the hundred-billion-dollar auto dismantling market. Company will further give full support to the main force of leading enterprises in the field of recycling economy, seize the historical opportunity, take the policy wind to strengthen the leading edge in the field of household appliances recycling, automobile dismantling and so on, deeply participate in the national "trade-in" strategy. At the same time, it will continue to expand the circle of recycling partners, forging the core competitiveness of the global industry with the advantages of a strong green industrial chain and supply chain, shaping the new kinetic energy and advantages of development in new fields and new tracks. In this way, it will inject a strong green kinetic energy for the high-quality development of China's economy and for the sustainable development of the global new energy industry.