On December 27, Guangzhou Automobile Group Co., Ltd. (also known as GAC Group), Zunyi Municipal People's Government, and HEC Technology Holdings Co., Ltd. (also known as HEC Technology) held a signing ceremony for strategic cooperation in Guiyang, Guizhou Province. The three parties have reached a strategic framework agreement on their future cooperation intentions, concerning the full integration and utilization of their respective resources, technologies, and industrial advantages.

Based on the strategic cooperation framework agreement, the three parties will focus on the following cooperation: negotiating to promote cooperation in the extraction, utilization, and industrialization of energy and mineral resources in aluminum polymetallic deposits, as well as finish machining and deep processing of aluminum, when appropriate. In the future, the parties will further explore cooperation in projects such as power batteries, new energy vehicles, and new energy technology innovation centers according to the national industrial policies and development strategies of all parties.

The parties signed this strategic cooperation agreement with the aim of jointly developing a lithium battery industrial chain system through strategic cooperation. Such a move enables GAC Group to employ local resources and preferential policies in Tongzi County, Zunyi City, to cooperate with Zunyi City and HEC Technology in order to complete the deployment of a vertically integrated new energy industrial chain of "mining + mineral processing + production of basic raw materials for lithium batteries + energy storage and power battery production." As a result, they jointly reduce the cost of the industrial chain, ensure the supply of raw materials for lithium batteries to GAC Group, and promote the development of the energy vehicle industry. In addition, it enables GAC Group to optimize the layout of the upstream and downstream industrial chains of power batteries, establish an overall independent and controllable new energy industrial chain, and develop the energy storage business simultaneously in order to enhance the company’s core competitiveness and profitability.