GEM, GAC Group join hands to open up the trade-in market

Shanghai (Gasgoo)- On April 10, Guangzhou Youmei Recycling Technology Co., Ltd. (Guangzhou Youmei) was officially incorporated as a joint venture between Wuhan Power Battery Recycling Technology Co., Ltd., a subsidiary of GEM Co., Ltd. (GEM), and UPower Energy Technology (Guangzhou) Co., Ltd., a wholly-owned subsidiary of GAC Group.

Upon completion of the Phase I project, Guangzhou Youmei will possess an annual capacity of recyling and dismantaling 20,000-tonne power batteries, as well as recycling and reproducing 10,000-tonne battery-used black solid powder.

Early on November 29, 2023, GEM and GAC Group inked a a strategic cooperation framework agreement, aiming to construct a global new energy full life cycle value chain. The ultimate goal of the collaboration was to pioneer a paradigmatic model for the holistic green development of the global new energy industry, jointly promoting the development of global green supply chains.

Photo credit: GEM

As a key investment attraction project of Guangzhou city in 2024, Guangzhou Youmei's Phase I involves a total investment of 190 million yuan. It will integrate the advantages of both GEM and GAC Group to construct production lines including battery crushing and sorting, electrode fragment crushing and selection, wet regeneration of black solid powder, and solid-phase repair and regeneration. The company seeks to efficiently manage the green recycling, resource utilization, and remanufacturing of scrapped new energy vehicles (NEVs), decommissioned power batteries, and their by-products.

Since the beginning of 2024, the government has placed heightened emphasis on the "trade-in" initiative, with a series of policies and measures being consistently rolled out. China's National Development and Reform Commission recently stated that the demand for automobile replacement and upgrading exceeds the trillion-yuan-level, and will create a tremendously vast market space when coupled with recycling and reusing. It goes without saying that this will contribute significantly to economic growth.

Furthermore, China's Ministry of Ecology and Environment recently issued the Catalogue of Classification and Codes for Solid Waste, in which for the first time explicitly includes discarded electrical and electronic products and waste batteries in the category of recyclable materials.

Seizing the opportunities, GEM has collaborated with leading enterprises across various fields and industries including Midea Group, Dongfeng Passenger Vehicle Company, and JD.com to jointly promote the circularization, digitalization of the supply chain, and the recycling of waste products.