Source: STCN Date: Jan. 13, 2016
According to the announcement by GEM in the evening of January 12, the company’s subsidiary - Wuxi KLK Energy Material Co., Ltd ("Wuxi KLK") – signed a strategic supply agreement on January 12, 2016 with Far East First New Energy Co., Ltd. ("Far East First") for power battery’s three-dimensional anode material, a contract involving an amount of about RMB 450 million, with term of one year. The contract object is three-dimensional lithium ion battery anode material.
The two parties have established a mutual strategic supplier partnership, mainly supplying three-dimensional anode material for nickel-cobalt lithium manganese oxide. Wuxi KLK makes a commitment to ensuring the required quantity of three-dimensional lithium ion battery anode material product by Far East First, with the reserved annual supply capacity in 2016 at 3000 tons, and the total sales amount at about RMB 450 million. The price and quantity are subject to the actual monthly supply and demand. In January 2016, both parties intend to sign a supply contract of 200 tons, and the amount is expected to be about RMB 30 million.
Far East First, a wholly owned holding company of Far East Smart Energy (600869), is a high-tech enterprise specializing in lithium-ion battery R&D, production and sales, one of the nation's largest vehicle battery manufacturers. It has become a mainstream supplier to Zotye Auto, Jiangxi Jiufa, Shaanxi Automobile and other new energy vehicles. As a core enterprise in power battery material, GEM owns leading advantages in technology, capacity and market of power battery material manufacturing, which has formed a complete industrial chain, from used battery recycle to power battery’s key material manufacturing.
GEM said the two parties has signed a cooperation agreement to carry out a comprehensively strategic cooperation and large-scale supply in the three-dimensional power battery material, marking the GEM power battery material entering the mainstream industrial chain of new energy vehicles and vehicle power battery, to lay a solid foundation for building the company as a global power battery material core supplier. It promotes the company to participate fully in the domestic and international market competition, and significantly enhances its profitability and competitiveness in three-dimensional power battery material.