In late December, 2021, GAC Capital, affiliated to GAC Group, joined hands with Shangqi Capital,affiliated to SAIC, to officially enter into strategic investment agreement with Jiuling Lithium,with total investment of RMB 300 million.Jiuling Lithium is a group company integrating mine exploiting, ore dressing and smelting deep processing.Jiuling controls lepidolite resources and boasts domestic advanced core technologies to extract lithium from lepidolite.After years of research, Jiuling has overcome the industrial difficulty of extracting lithium from lepidolite at low cost.It has succeeded in realizing low-cost stable production process from lepidolite, mother solution of lithium sulfate, to battery-grade lithium carbonate.Jiuling’s advanced technologies are fully demonstrated in terms of lithium extraction rate, cost control, continuous production, and the subsequently extracted high quality lithium carbonate.The strategic investment will help GAC and SAIC to deeply integrate upstream and downstream resources in NEV industry, and succeed in securing scale production and stable supply of lithium carbonate from the source, which is core raw materials of new energy batteries.Specifically, GAC has succeeded in harvesting new emerging energy technologies via this investment in terms of graphene anode materials,silicon carbon anode, solid batteries, and hydrogen cells.Through the cooperation with Jiuling, GAC hopes to establish close business relationships with Jiuling including industry chain supporting,purchasing system supporting and joint R&D.The cooperation with Jiuling also helps GAC to make further deployments in new energy field, i.e.extending itself to the most upstream part of new energy batteries, mine resource field.In this way,the supply of lithium carbonate, core raw materials of new energy batteries, is able to get secured from the source.