GEM Loan

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Founded in 2001, GEM Co., Ltd. (“GEM”) is a leading waste treatment and recycling company in China with 16 production bases in 11 provinces/municipalities across China. Jingmen GEM New Material Company (“Jingmen GEM” or the “company”) is a main plant within GEM. The company was established in 2005 at Jingmen High & New Technology Industry Park in Jingmen City, Hubei Province, China.  The current operations at Jingmen GEM are mainly recycling of scrapped electronic and electrical products, scrapped automobiles, and waste resources containing nickel, cobalt and tungsten. GEM re-creates high-tech products such as cobalt, nickel, tungsten and power battery raw material through recycling technology. Electronic and electrical products are recycled through physical crushing and sorting technologies and recovery of reusable materials. The waste circuit boards are recycled through controllable crushing, separation, and pyrolysis to recover metals. Cobalt (Co), Nickel (Ni), tungsten (W), Zinc (Zn), Copper (Cu), and other valuable metals are recovered from waste batteries and other metal-containing waste resources through applicable recycling technologies (e.g. hydrometallurgical process). All the raw materials and products are transported thorough well-established road and railroad systems.  The proposed investment is an RMB 500 million local currency A Loan (US$76 million) to Jingmen GEM to develop an electric vehicle’s (EV) lithium ion battery recycling and assembling facility (the “project”). The project consists of recycling 100,000 EV batteries and assembling 100,000 new EV batteries per annum. The recycling process mainly includes discharging, disassembling and testing of battery packs. After the test, the reusable battery cells will be re-packed for echelon use such as in energy storage field (~ 50,000 batteries per annum). In addition, Jingmen GEM will also purchase new battery cells for manufacturing of 50,000 new battery packs per annum. The dead batteries will be sent to battery recycling process for metal recovery. The disassembled circuit boards will be sent to circuit board recycling process for metal recovery. The project will be established on the sites of two discontinued workshops inside the existing Jingmen GEM plant. The neighboring companies are manufacturers of glass, building material, energy equipment, etc. The nearest residential cluster houses are outside of the industry park and at least 1 km away. The project construction is expected to start in April 2021.