Shanghai Electric Guoxuan and Pacific Green Sign Memorandum of Understanding to Manufacture Battery Energy Storage Systems

SHANGHAI,Feb. 23,2021 -- Shanghai Electric Guoxuan New Energy Technology Co.,Ltd ("Shanghai Electric Guoxuan" or "the Company") and Pacific Green Technologies,Inc. ("Pacific Green" or "PGTK") have signed a memorandum of understanding on the strategic manufacturing of battery energy storage systems. The two parties will leverage their respective advantages and resources to explore new energy storage system projects on an international level,paving the way for Shanghai Electric Guoxuan's entry into the global high-end energy storage market.

Pacific Green will oversee project implementation through its subsidiary Pacific Green Energy Storage Technology Co.,Ltd. Drawing on its experience in the procurement and development of international energy storage projects,its scope includes system design,integration,and commercial optimization. Meanwhile,Shanghai Electric Guoxuan,a joint venture established in December 2017 between Shanghai Electric (SEHK: 02727,SSE: 601727) and Gotion High-Tech (SZSE: 002074),will leverage its expertise as a leading supplier to provide lithium battery systems.

Shanghai ElectricGuoxuan focuses on the technology sectors of energy storage batteries and energy storage system integration. Its comprehensive business coverage includes the R&D,sales,and services of lithium battery storage systems,exploring advanced lithium battery storage materials,batteries,battery management,and full industry chain integrated systems. The Company has developed two long-life lithium iron phosphate batteries,which leverage advanced technology to optimize the material design and production processes. In addition to withstanding overcharging,short circuits,and overheating,these batteries boast industry-leading life cycles,meeting the high safety and long-life requirements of energy storage.

In December 2018,Shanghai ElectricGuoxuan began laying the foundation for its Nantong lithium battery industrial base,with a planned capacity of 10GWh and a total project investment of RMB3 billion. On September 29,2020,the Nantong base's RMB 1.5 billion,5GHw Phase 1 was officially completed and launched,boasting world-class production lines,intelligent production,and a factory digitization rate of 85%.

Other key domestic projects include:

Large-scale energy storage projects in Anhui,Qinghai,and more: Since 2017,Shanghai Electric has developed a number of energy storage projects in 13 provinces,cities,and autonomous regions across China,focusing primarily on energy microgrids,industrial and commercial energy storage,new energy storage,shared photovoltaic storage,and energy storage with integrated charging.

The Qinghai 32MW/64MWh shared energy storage project: An innovative first in new energy storage,Shanghai Electric launched its full industrial chain solution connecting source,network,charge,and storage through a new "shared energy storage" model on December 26,2020.

Chongming Internet+ smart energy project: Since 2018,Shanghai Electric has implemented a series of smart engineering solutions for Xin'an Village,Sanxing Town. The project generates electricity with 100% renewable energy,adding an energy storage battery system,achieving peak cut,and configuring a set of reactive power compensation equipment to improve power quality. The energy management system controls both the on-grid and off-grid hybrid systems while ensuring electricity to lighting systems,charging stations,and other public facilities. As of the first half of 2020,the project celebrated more than 550 days of safe and successful operations,with a cumulative power generation of nearly 320,000 kWh,delivering nearly 190,000 kWh of clean,green energy to the grid. This means that carbon dioxide emissions have been reduced by approximately 320 tons,the equivalent of planting nearly 120 trees.

5G base stations batteries: Shanghai ElectricGuoxuan has thus far achieved sales of more than RMB100 million at home and abroad,to provide lithium iron phosphate batteries to 5G base stations.