Chinese Waste Recycling Enterprise GEM Co., Ltd. Implemented EU Battery Management Regulations

Shenzhen, China--(Newsfile Corp. - January 7, 2022) - GEM Co., Ltd., (SZSE: 002340) which builds a full life cycle value chain of power batteries, deploys global recycling, and provides solutions for global resource shortages through green recycling method, formally implemented the New Battery Management Regulations of the EU on January 1, 2022. According to the EU regulations, by 2030, the recycled Co, Ni, and Li materials used in battery production shall account for no less than 12%, 4%, and 4% of the total amount used; By 2035, the recycled Co, Ni, and Li materials used in battery production shall account for no less than 20%, 12%, and 10% of the total amount used. The changes in the implementation of the New Battery Management Regulations of the EU will promote automobile companies to make clear statements and take action on battery recycling and the use of recycled materials. In response to the impact of the COVID-19 epidemic, the European Union is about to launch a draft "green economy recovery plan" to encourage European car companies to sell clean energy vehicles and establish a new clean energy vehicle procurement mechanism, and GEM is committed to comply with the new regulations.

GEM actively builds a "2+N+2" waste battery recycling system, where "2" refers to the two battery recycling and disposal centers, namely, GEM Wuhan Park and Wuxi Park, and the two resource utilization centers, namely, Jingmen Park and Taixing Park, and "N" refers to other recycling and disposal bases such as GEM Tianjin Park and GEM Shenzhen Park + other social recycling networks. At present, GEM has three companies that make standardized comprehensive utilization of new energy waste power batteries as announced by the Ministry of Industry and Information Technology. It has been officially recommended by the Ministry as a typical case of comprehensive utilization of waste power batteries during the 13th Five-Year Plan period.

GEM has a total dismantling and processing capacity of 450,000 sets per year. The waste batteries recycled and processed by GEM account for more than 10% of China's total scrapped batteries, and recycled Ni resources account for more than 8% of the original Ni mining volume in China, and the recycled Co resources are 2.2 times of the original Co mining volume in China. From 2010 to 2020, GEM recycled 36,000 tons of Co resources, which is equivalent to the mining of 13.36 million tons of raw Co ore; ultrafine Co powder accounts for 50% of the global market volume; 30,000 tons of Ni resources and 1,500 tons of Li carbonate were recycled, equivalent to the mining of 2 million tons of raw Ni ore and 15,000 tons of raw Li ore.

In 2015, Professor Xu Kaihua, Chairman of GEM, proposed for the first time to build a full life cycle value chain of new energies, and comprehensively promote the construction of a green supply value chain of "power battery recycling - recycling of raw materials of Ni, Co and Li batteries - battery material recycling - power battery recycling" and the global green supply chain of Ni and Co products. He also proposed that in 2018, GEM would historically implement the global strategic goals of "leading China and being a pioneer in the world" and "signing and cooperation rate of 50% and recycling rate of 30%" and quickly and largely widen the gap with the peers in the industry.

In 2021, GEM took the lead in completing the construction of a power battery recycling base in Pohang, South Korea, with an annual processing capacity of 20,000 tons. At the same time, GEM is actively deploying power battery recycling plants in Europe and Southeast Asia to build a global power battery recycling industry system and quickly and largely widen the gap with the peers in the industry.

It is estimated that by 2025, GEM's total power battery recovery volume will exceed 250,000 tons. GEM plans to cooperate with upstream and downstream companies around the world to realize the recovery of 30,000 to 50,000 tons of scarce resources such as Co and Ni, large-scale application of cascade utilization products, comprehensive utilization output value of about RMB10 billion, realize the full life cycle value use of battery materials, solidly promote the construction of a large-scale cycle system of power batteries from the end of the life to the consumer end, and actively build a global leader in the comprehensive utilization of retired power batteries.

In 2021, GEM carried out directional recycling of battery materials and recycling of used power batteries with 430 upstream and downstream companies including Toyota Motor, CATL, Samsung, ECOPRO, BYD, EVE, Funeng Technology, REPT, etc., promoting the new energy vehicle industry to realize "from green to green".

GEM is actively making global deployment, serving the world, promoting the global battery recycling industry chain, building a sustainable core competitiveness of strategic scarce resources, and providing a reliable and safe supply model for global new energy strategic resources, which will surely promote the development of the global green economy.

About GEM

As China's first listed company in urban mine resource exploitation, GEM ranks the 58th among top 100 best companies in Shenzhen, and is one of the top 500 manufacturing enterprises in China, one of the top 500 patent-driven enterprises in China, and one of China's top 5 listed companies in environmental protection. It is a globally leading company in the cemented carbide material industry and the new energy material industry, also a world-leading waste recycling enterprise and a globally-advanced and representative enterprise in the green and low carbon industry.

To know more, visit http://www.gem.com.cn/

Contact:

GEM

Qiao Shaohua

qiaoshaohua@gem.com.cn

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