Huayou Cobalt Vale Indonesia signed a cooperation agreement

Recently, Zhejiang Huayou Cobalt Co.
, Ltd.
(hereinafter referred to as Huayou Cobalt) issued an announcement that the company and Vale Indonesia signed a "definitive cooperation agreement"
on the hydrosmelter project of KNI Indonesia based on the principles stipulated in the previous cooperation framework agreement.
Huayou Cobalt intends to subscribe for the new shares
of KNI for approximately US$48.
689 million through its wholly-owned subsidiary, Huaqi Company.
After the subscription is completed, Huaqi will hold 80% of the shares
of KNI.

For the signing of this agreement, Huayou Cobalt called it an important milestone
in the cooperation between the two sides.
Huayou Cobalt said that it will jointly promote the development of Indonesian nickel resources with Vale Indonesia, and will give full play to their respective advantages to carry out nickel resource smelting and deep processing in Indonesia, create a world-competitive nickel raw material manufacturing system for new energy power batteries, and provide reliable resource guarantee
for the development of the company's new energy lithium battery material business.
At the same time, Huayou Cobalt also said that this cooperation will not have a significant impact on the company's operating performance in 2022, and there is still uncertainty
about the impact on the company's future operating performance.

In April 2022, Huayou Cobalt and Vale Indonesia signed a cooperation framework agreement to cooperate on a high-pressure acid wetting project using limonite ore as raw material to treat limonite in Vale's Pomalaa mine in Indonesia, with a planned production capacity of nickel hydroxide cobalt products
with an annual output of no more than 120,000 tons of nickel metal.
In July 2022, Huayou Cobalt signed a memorandum of cooperation with Ford Motor and Vale Indonesia, based on the strategic cooperation intentions reached by Huayou Cobalt and Vale Indonesia in the early stage, the two parties intend to introduce Ford Motor to jointly plan and build a high-pressure acid wetting project
.
After the completion of the project, Huayou Cobalt will convert nickel products into battery material products and supply them to Ford Motor.