Gelonghui, November 19丨Fangyuan Co., Ltd. (688148.SH) announced that recently, its wholly-owned subsidiary Fangyuan Recycling signed a "Lithium Carbonate Annual Supply Contract" with Zhongtuo New Energy, agreeing that Fangyuan Recycling will provide no less than 0.01 million tons of battery-grade lithium carbonate to Zhongtuo New Energy, with the contract term from January 1, 2025, to December 31, 2025. At the same time, Fangyuan Recycling signed an "Annual Strategic Cooperation Agreement" with Xiangyu New Energy, agreeing that Fangyuan Recycling will provide 0.015 million tons (with an allowable fluctuation of 10%) of battery-grade lithium carbonate to Xiangyu New Energy, which will provide Fangyuan Recycling with lithium-containing raw materials including but not limited to lithium mica and spodumene, as well as nickel and cobalt raw materials, with the contract term from January 1, 2025, to December 31, 2025.
The sales symbols for the signed contracts are all battery-grade lithium carbonate, including a plan to provide no less than 0.01 million tons to Zhongtuo New Energy and 0.015 million tons (with an allowable fluctuation of 10%) to Xiangyu New Energy. The trade price will be determined by the market price of lithium carbonate through negotiations between both parties. Based on the average price of the lithium carbonate block contract on November 19, 2024, it is estimated that the contract amount with Zhongtuo New Energy will be about 0.82 billion yuan (calculated based on 0.01 million tons), and the estimated contract amount with Xiangyu New Energy will be approximately 1.107 billion yuan to 1.353 billion yuan (calculated based on the allowable fluctuation of 10% for 0.015 million tons), and will be subject to the actual sales orders.
