Guangdong Fangyuan Environment Co., Ltd. (688148.SH) signs a sales contract and cooperation agreement for battery-grade lithium carbonate.

Guangdong Fangyuan Environment Co., Ltd. (688148.SH) announced that its wholly-owned subsidiary Jiangmen Fangyuan Recycling Technology Co., Ltd. (referred to as "Fangyuan Recycling") has signed a daily operational sales contract with Zheshang Development Group (Zhejiang) New Energy Technology Co., Ltd. (referred to as "Zhongtuo New Energy"). Fangyuan Recycling has also signed a strategic cooperation framework agreement with Xiamen Xiangyu New Energy Co., Ltd. (referred to as "Xiangyu New Energy"). According to the agreements, Fangyuan Recycling will provide Zhongtuo New Energy with no less than 10,000 tons of battery-grade lithium carbonate from January 1, 2025 to December 31, 2025. At the same time, Fangyuan Recycling will provide Xiangyu New Energy with 15,000 tons (with a fluctuation range of 10%) of battery-grade lithium carbonate, and Xiangyu New Energy will provide Fangyuan Recycling with lithium-containing raw materials such as lithium mica and lithium feldspar, as well as nickel and cobalt raw materials from January 1, 2025 to December 31, 2025. Based on the average price of lithium carbonate futures contract on November 19, 2024, the company expects the contract amount with Zhongtuo New Energy to be approximately 820 million yuan (based on 10,000 tons) and the contract amount with Xiangyu New Energy to be approximately 1.107 billion to 1.353 billion yuan (based on 15,000 tons with a fluctuation range of 10%). The actual execution of the contracts will depend on the sales orders signed by the parties in future transactions, and there is uncertainty regarding the actual sales quantity and amount.