Guangzhou Tinci Materials Technology (002709.SZ) plans to operate a joint venture with Honeywell in the business of liquid lithium hexafluorophosphate, electrolytes, and other products.

Announcement from Guangzhou Tinci Materials Technology (002709.SZ): The company and its subsidiary Delaware Tianci have signed two equity purchase agreements with Honeywell International Inc. ("Honeywell") and its subsidiary Advanced Energy Materials LLC ("AEM"). Both parties intend to jointly establish a joint venture company through equity purchase and subscription, which will engage in the production, operation, and sales of products such as liquid lithium hexafluorophosphate and electrolytes. According to the agreement, Delaware Tianci will transfer 49% equity of its wholly-owned subsidiary Texas Tianci to Honeywell, with the transfer price expected to be $16.66 million, subject to adjustments based on pre-delivery reports (if any). After the equity transfer, Delaware Tianci will hold 51% and Honeywell will hold 49%. Texas Tianci plans to build a project with an annual production capacity of 200,000 tons of electrolytes. AEM is a wholly-owned subsidiary of Honeywell and will be the main body of another joint venture company under this transaction, with its primary future business being the production, operation, and sales of battery raw materials such as liquid lithium hexafluorophosphate. Delaware Tianci and Honeywell have mutually agreed that after the approval and other delivery conditions related to this cooperation are met, Delaware Tianci will subscribe to the additional shares issued by AEM. The transaction price will be separately negotiated based on the initial investment of AEM, with Honeywell holding 51% and Delaware Tianci holding 49% after the subscription. AEM plans to build a project with an annual production capacity of 100,000 tons of liquid lithium hexafluorophosphate, with a total investment expected to be $400 million. Honeywell, the partner in this cooperation, is one of the world's leading diversified technology and manufacturing companies, with core businesses covering automation, aviation, and energy and sustainability. They have strong chemical technology capabilities and fluorinated materials production and operation capabilities. This external investment is aimed at jointly investing with Honeywell to establish a joint venture company, which will enable both parties to fully integrate their advantageous resources, achieve mutual complementarity, and share resources.