GCL issued an announcement on the evening of July 10 saying, Gcl-thai Tantalum (Private) Limited (Zim-Thai Tantalum Zimbabwe), a wholly-owned subsidiary of GCL-Thai Tantalum New Energy Co., LTD. (hereinafter referred to as "GCL-Thai Tantalum") and Zim-Thai Tantalum (Private) Limited (hereinafter referred to as "Zim-Thai Tantalum Zimbabwe") have recently signed a Contract Termination Agreement. Due to significant changes in the objective economic situation, all parties agree to terminate the "Lithium Resource Development Cooperation Agreement" through friendly negotiation, and do not bear any liability for breach of contract.
GCL said that the dissolution of the cooperation agreement will not have a material impact on the company's financial position and operating results for the current year.
GCL Lithium Power and Zim-Thai Tantalum Zimbabwe signed the Lithium Resource Development Cooperation Agreement on December 23, 2022. GCL said that the signing at that time was aimed at promoting the process of GCL exploring lithium resources overseas, accelerating the reserve of lithium resources abroad, and assisting the company in the resource layout and integration of the lithium battery related industrial chain in the future.
The reporter noted that on June 6, GCL Energy had issued an announcement to adjust the issuance of convertible bonds, and canceled the "annual output of 30,000 tons of battery-grade lithium carbonate project" in the raised investment project. The project originally planned to raise 1.545 billion yuan.
GCL has introduced in the 2022 annual report that the company's main business is mobile energy, clean energy operations and lithium battery resource materials, of which lithium battery resource materials business belongs to the company's nurturing development business. In 2022, the company has obtained the relevant approval procedures for the production and processing of 30,000 tons of battery-grade lithium carbonate salt with an annual output in Meishan, Sichuan, and also signed an agreement with partners to jointly invest in the development of EPO1780 lithium ore resources in Zimbabwe.
For the reasons for choosing the layout of lithium mines, GCL Energy Department said in May in response to the Shenzhen Stock Exchange inquiry letter that due to the mismatch between lithium salt supply and demand and high prices, lithium battery manufacturers to the company's supply price is higher and the delivery cycle is longer. The company hopes to provide the corresponding materials for the company's lithium battery suppliers by mastering the upstream lithium ore resources and supporting the positive electrode material production capacity, and then apply the batteries provided by the suppliers to the company's power replacement and energy storage business.
