TD Holdings, Inc. (Nasdaq: GLG), a prominent commodities trading service provider in China, has revealed a major development through its subsidiary, Shenzhen Qianhai Baiyu Supply Chain Co., Ltd. (Baiyu). Baiyu, known for its expertise in commodity supply chain services, has entered into a significant procurement agency agreement with Shenzhen Jintongyuan Energy Storage Technology Co., Ltd. (Jintongyuan) for cobalt materials, essential raw materials for battery energy storage. The total procurement value for this strategic partnership is set at RMB 1.2 billion (approximately US$165 million). This move not only diversifies TD Holdings' service offerings but also solidifies its presence in the renewable energy sector.

The agreement outlines a 12-month collaboration during which Jintongyuan will entrust Baiyu with the procurement of cobalt materials. Baiyu will oversee a monthly procurement quantity of RMB 100 million (approximately US$14 million). As part of the agreement, Jintongyuan will provide a 20% deposit to Baiyu upon acceptance of the commission. Baiyu will also receive an agency service fee and a fee for fund occupation from Jintongyuan.

Cobalt plays a vital role in battery energy storage, which is widely recognized for its exceptional characteristics such as high energy density, extended lifespan, quick charge and discharge capabilities, and environmental sustainability. Cobalt's unique electrochemical and physical properties contribute to efficient charge storage and prolonged battery life. This partnership is poised to contribute to the advancement of battery energy storage through the acquisition of high-quality cobalt materials.

Ms. Renmei Ouyang, CEO of TD Holdings, Inc., expressed her enthusiasm about the agreement, stating, "We are excited to formalize the Agreement with Jintongyuan, which underscores our reputation as a trusted supply chain service provider. We see this partnership not only as a result of our efforts to bolster revenue, but also as a significant milestone in our expansion into the renewable energy sector. Moving forward, we will continue to seek more partnership opportunities in the renewable energy industry to solidify our role in this burgeoning market and pave the way for long-term business growth."

 

Source: prnewswire.com

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