On October 25th, GEM released an announcement disclosing that it has signed a strategic cooperation framework agreement with XTC New Energy for the supply of advanced battery raw materials and materials. Under the agreement, it is stated that from 2026 to 2028, GEM is expected to supply XTC New Energy with 150,000 tonnes of various battery raw materials and materials annually, with a total supply of 450,000 tonnes over the three-year period.
The main content of the strategic cooperation framework agreement consists of four major parts:
- Product Supply and Sales Cooperation
Both parties agree to establish a long-term cooperative partnership in the raw material supply chain for lithium battery products—including ternary materials, lithium cobalt oxide, solid-state lithium battery materials, semi-solid-state lithium battery materials, and lithium-rich manganese-based materials—used in consumer electronics, power systems, low-altitude aircraft, eVTOL, AI, and robotics.
From 2026 to 2028, Party B is expected to supply Party A with 150,000 tonnes of various battery raw materials and materials annually. The breakdown includes approximately 36,000 tonnes/year of cobalt chloride, 36,000 tonnes/year of nickel sulfate, 18,000 tonnes/year of cobalt tetroxide, 36,000 tonnes/year of ternary precursors, and 24,000 tonnes/year of lithium carbonate/lithium phosphate. All the above quantities include recycled materials, and Party B shall ensure supply in accordance with Party A’s needs, with a total supply of 450,000 tonnes over the three-year period.
Both parties will sign a formal agreement separately when substantially advancing subsequent cooperation to further clarify the rights and obligations of each party. Both parties shall strictly comply with the relevant contract terms to protect each other’s legitimate rights and interests.
- Cooperation in Advanced Battery Raw Material Supply and Global Capacity Layout
Both parties agree to conduct technical research, industrial chain supply cooperation, and capital cooperation in areas such as resource recycling and reuse, green nickel resource development, and the manufacturing of power battery and consumer battery raw materials. This collaboration aims to acquire advantageous resources, drive in-depth cooperation in business, technology, and capital across the industrial chain (upstream and downstream), ensure supply stability and cost advantages, and build an integrated industrial chain with global competitiveness. Through the recycling and remanufacturing of relevant products, both parties will achieve green and low-carbon development to better meet the carbon footprint certification requirements of the global new energy industry.
- Product R&D
Both parties agree to carry out in-depth cooperation in the R&D and certification of products such as ternary precursors for batteries, cobalt tetroxide, solid-state lithium battery precursors (including new structures and materials for solid-state batteries), and lithium-rich manganese-based precursors. The cooperation also covers the development of existing technologies for cathode material advancement and future forward-looking technologies. By efficiently integrating the resources and advantages of both parties, they will explore the establishment of a cooperative mechanism for resource sharing and collaborative R&D to reduce production costs, share market economic benefits, jointly respond to challenges in the end market, and achieve mutual benefit and win-win results.
- Cooperation Mechanism
Both parties will set up a dedicated coordination team, establish a senior management mutual visit and discussion mechanism, and build an effective communication mechanism to further enhance their global strategic cooperative partnership. They will also jointly establish a market risk early warning, prevention, and response mechanism to protect the interests of both parties to the greatest extent.
Source：https://news.bjx.com.cn/html/20251027/1466889.shtml
