Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 01

About This Report

This report is the sustainability report (or social responsibility report) for the fifth consecutive year issued by Jiangxi Ganfeng Lithium Co., Ltd., which aims to communicate with stakeholders on corporate social responsibility, operational initiatives and performance, and to respond to stakeholders' needs.

Reporting Period The reporting period is from January 1 to December 31, 2020. Some of the statements and data are beyond the reporting period in an appropriate manner.

Reporting Scope The report covers the headquarters, branches and subsidiaries of Ganfeng Lithium Co., Ltd. Unless otherwise specified, the environmental data disclosed in this report was generated by Ganfeng's operations in mainland China.

Data Source The data and information in the report was extracted from Ganfeng Lithium Co., Ltd.'s relevant documents, reports and system.

Reporting Reference The report was prepared in accordance with Appendix 27 Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (HKEx ESG Reporting Guide).

Response to the Four Principles of the HKEx ESG Reporting Guide Materiality: To prepare this report, the Company conducted a materiality analysis to determine the completeness and accuracy of its contents. The process and results of materiality analysis are presented in Section “Sustainability Development” of this report.

Quantitative: The report disclosed quantitative data on both environmental and social aspects to demonstrate the performance of indicators.

Balance: The Company strives to achieve objective and unbiased information disclosure. The contents of the report came from the Company's internal management documents, statistics and public disclosure, as well as public media reports, with no improper revisions.

Consistency: Unless otherwise stated, the data disclosed in this report was from the unified information collection process and working mechanism established by the Company to ensure the comparability of data year after year.

Reporting Specification For convenience, Ganfeng Lithium Co., Ltd. is referred to as “Ganfeng Lithium”, “the Company” or “we” in the report.

Access to This Report You can download the Chinese version of this report on the website of the Shenzhen Stock Exchange, or the Chinese and English versions on the website of the Hong Kong Stock Exchange. Ganfeng Lithium Co.,Ltd. Message from the Chairman 02 2020 Sustainability Report 03 Ganfeng Lithium Co.,Ltd. Message from the Chairman 04 2020 Sustainability Report 05

Message from the Chairman “ It is necessary to attract people with Dear readers: lofty ideals through the main business, always give full play to the Over the course of Ganfeng Lithium’s 20 years of operation we have worked together to realize shared ideals. spirit of hard-working, Adhering to the development strategy of "building a worldwide first-class enterprise with upstream and downstream keep on the road of integration in the lithium industry", we center ourselves in the domestic market, while focusing on a global layout, striving entrepreneurship, and to be a worldwide first-class enterprise in terms of market competition and internal management. In the past 20 years, strive to become a

every decision and measure of the Company has moved us towards this grand goal. fighter of Ganfeng. In order to ensure the sustainable development of the Company, we have continuously explored high-quality lithium “ resources at home and abroad, and gained significantly in overseas markets to provide raw material supply for our long-term development. In 2020, the Company's Basic Lithium plant officially entered operation with an annual output of 50,000 tons of lithium hydroxide and world-leading total designed production capacity, taking our battery-grade lithium hydroxide production capacity to the next level. Our lithium battery products performed well in the market, exhibiting their advantages in various market segments, among which our solid-state batteries gradually advanced in terms of industrialization. In the recycling sector, we took the lead for the first time in presiding over the "Technology and Demonstration of Efficient and Clean Recycling of Retired Ternary Lithium Battery Materials" national science and technology project to facilitate resource recycling.

Guided by customer demand, we maintain close communication with downstream customers and continuously upgrade product quality. While actively promoting IATF 16949 (for manufacturing of automotive production and service parts) certification to further standardize the manufacturing process, we pull the needs and management requirements of downstream customers upward. In 2020, we continued to improve the due diligence management of responsible supply chains by establishing a code of conduct for suppliers to promote sustainable development of the entire industrial chain.

We strive to achieve a balance between society, economy and the environment to maintain healthy momentum for the enterprise to grow. In 2020, Ganfeng Lithium joined the China ESG Leaders Association, obtained a BB MSCI ESG rating and was selected into the Hang Seng A-Share Corporate Sustainability Benchmark Index, indicating that our sustainable development performance has been recognized by the capital market. We not only pay attention to environmental friendliness in production and operation processes, but also actively build a product portfolio that responds to global climate change to facilitate the global energy transition. We have created a broad career development space for our employees, and respect and encourage them to work hard and forge ahead.

The year 2021 will be marked by further improvements in management of Ganfeng Lithium. We will improve our internal skills, deepen our main business and continue working with stakeholders to grow with an open and inclusive mind. We will build ourselves into a lithium ecosystem with first-class products, first-class services, first-class management and first-class technology, taking every opportunity to create a green, clean and healthy path for the development and progress of mankind!

Chairman Li Liangbin Ganfeng Lithium Co.,Ltd. 06 About Us 2020 Sustainability Report 07

About Us Ganfeng Lithium’s 2 Lithium carbonate, Lithium hydroxide Ecological Chain Lithium chloride, Lithium fluoride

Jiangxi Ganfeng Lithium Industry Co., Ltd. is a global leader in the Lithium lithium industry. The company was listed on the Shenzhen Stock compounds & Exchange in August 2010 (A-share code: 002460), becoming the metals first listed company in China's lithium industry. In October 2018, we were successfully listed on the main board of the Hong Kong Stock Exchange (H-share code: 01772). The company is currently the sole A+H share-listed company in the domestic lithium industry. We started as a manufacturer of midstream lithium compounds and Spodumene 1 3 lithium metals and have successfully expanded to the upstream and Brine downstream of the industrial value chain. Lithium clay The company's business runs through the industrial value chain Lithium resource Lithium battery development Ganfeng Lithium’s including upstream lithium resource development, midstream Lithium battery manufacturing lithium salt deep processing, lithium metal smelting, downstream recycling materials ecological chain lithium battery manufacturing and comprehensive recycling of retired lithium batteries. We are the only company in the world that possesses industrial technologies for lithium extraction from brine, lithium extraction from ore and lithium extraction, and recycling. The company has more than 40 types of lithium compounds and lithium metal products in five categories which are widely used in electric vehicles, energy storage, 3C products, chemicals and 5 4 pharmaceuticals among other areas. Our comprehensive product portfolio can meet customers' personalised and diversified needs. Electric vehicles

Lithium battery Application Energy storage for recycling scenarios 3C products Ganfeng Lithium Co.,Ltd. 08 About Us 2020 Sustainability Report 09

Global Layout

FengXin Ganfeng

Shanghai Ganfeng Ireland Avalonia YiChun Ganfeng JiangSu Ganfeng

China Ganfeng Recycling QingHai Fenghuangtai Ganfeng Power NingBo R&D Center NingDu Heyuan Mexico Battery Zhejiang Funlithium Sonora R&D Center in Basic Lithium Plant headquarters Ganfeng Electronics

Ningdu Heyuan NingDu Ganfeng

DongGuan Ganfeng Argentina Australia Huizhou Ganfeng Mariana Resource Mount Marion Cauchari-Olaroz Manufacturing base Pilbara Incahuasi R&D base

The company launched plants in Argentina and Mexico which will help shorten the supply chain, improve the efficiency of lithium resource transportation, reduce carbon dioxide emissions during transportation and provide employment opportunities for local residents. We will also build basic living facilities and sustainable communities to enhance residents' wellbeing. Ganfeng Lithium Co.,Ltd. 10 About Us 2020 Sustainability Report 11

Corporate Culture Brand Update

In 2000, Ganfeng Lithium was established. Over the past 20 years, we have continuously grown and evolved from a Vision Mission simple lithium chloride workshop into a leader in the lithium industry listed on A+H shares markets. On its 20th anniversary, Ganfeng Lithium officially launched a brand update with a new logo and in-depth reinterpretation of its corporate culture and concept, in order to respond to the new era and the world with a new identity and sense of To build a worldwide first-class enterprise To utilise limited lithium resources to responsibility. with upstream and downstream integration create a green, clean and healthy path in the lithium industry for human development and progress

Previous Logo

Spirit Core Value New Logo

To constantly strive to become stronger Integrity and transparency, responsibility and pursue excellence fulfilment, specialisation and efficiency, innovation-driven development and a For the initial letter G, inspired by the recycling logo, we have redrawn the three surrounding arrows to reflect Ganfeng win-win cooperation Lithium’s unique lithium recycling model, highlighting its sustainable development concept. The cuts in the letter G deliver a sense of sharpness, which shows Ganfeng Lithium's ambition of continuous self- improvement and exploration and its pioneering position in the industry, and on the other hand, represents its use of cutting-edge technology to promote iteration and green development.

The opening of the letter G indicates that Ganfeng Lithium will work with upstream and downstream partners to create greater value for the lithium and new energy industries with an open and inclusive mind. Operational Philosophy Enterprise Tenet "Ganfeng" is in red font, highlighting the Ganfeng brand, implying that Ganfeng Lithium has transformed from a lithium compound manufacturer to a lithium ecosystem.

"Lithium" is in green font, implying the environmental changes brought to the world by the lithium industry. To create unlimited value by utilising To contribute wealth to society, create limited resources value for customers, build a platform for employees and seek profit for shareholders

This logo update can be summarized as "innovation with inheritance", which retains the original layout and color style while:

1 incorporating the concept of 4 unifying Chinese and English font sustainable development design rules

Sustainable Development Policy 2 optimizing the font 5 standardizing drawing and optimizing text arrangement 3 optimizing color matching Taking the people-oriented approach and placing emphasis on continuous improvement, ensuring safety and observing laws and business ethics and pursuing green development to bolster the circular economy Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Materiality Analysis Response to UN SDGs

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The company regards safe production as the Technologypatent management innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracyhuman rights and andcarries protect out reclamationbiodiversity. and greening afterwards to maintain the stability of local ecosystem Energy saving and emissionpatent management reduction Themost company important actively responsibility takes actionsand strives for energy to create saving a safe and and consumption healthy working reduction environment to address for climateits employees. change. A humanLowerer rights Technology innovation and and protect biodiversity. Importance to stakeholders Democracy and Energyand response saving toand climate emissionpatent change management reduction fewThe initiativescompany areactively energysaving takes actions targets for forenergy factories saving and and linking consumption them to thereduction performance to address of executives, climate change. building A humanLowerer rights The company continuously improves corporate governance, strengthens anti- Importance to stakeholders Employee care and response to climate change The company actively takes actions for energy saving and consumption reduction to address climate change. A Development Energy saving and emission reduction afew climate initiatives change are riskenergysaving management targets system for factoriesand hiring and third-party linking them professional to the performance institutions toof conductexecutives, greenhouse building Importance to stakeholders Employee care and response to climate change corruptionThe company construction continuously and improves strives to corporate establish governance, an efficient strengthens and transparent anti- Lowerer Developmentand training Higher gasafew climate initiativesaccounting change are in riskenergysavingorder management to raise itstargets specialtysystem for factoriesand in responding hiring and third-party linking to climate them professional change.to the performance institutions toof conductexecutives, greenhouse building Employee care governancecorruption construction system. and strives to establish an efficient and transparent Lowerer Developmentand training Higher gasa climate accounting change in riskorder management to raise its specialtysystem and in responding hiring third-party to climate professional change. institutions to conduct greenhouse Importance to Sustainable Development of GanfengGrowth Lithium of the governance system. and training gasThe accountingcompany optimises in order to the raise construction its specialty process in responding during to mining climate operations change. and actively Community investment Growthcompany of the Importance to Sustainable Development of Ganfeng Lithium The company Theoptimises company the constructionhas established process a symbiotic during mining and win-win operations relationship and actively with Community investment Growthcompany of the carries out reclamation and greening afterwards to maintain the stability of local ecosystem The company partners,Theoptimises company working the constructionhas with established upstream process and a symbiotic downstream during mining and partners win-win operations in relationshipthe andindustry actively chain with Community investmentCorporate governance Social responsibility Environment responsibilitycompany andcarries protect out reclamationbiodiversity. and greening afterwards to maintain the stability of local ecosystem carries out reclamationtopartners, push forward andworking greening sustainable with upstreamafterwards management. and to downstreammaintain the partnersstability ofin localthe industry ecosystem chain

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Lowerer corruptionThe company construction continuously and improves strives to corporate establish governance, an efficient strengthens and transparent anti- Lowerer Higher The company continuously improves corporate governance, strengthens anti- Lowerer governancecorruption construction system. and strives to establish an efficient and transparent Higher corruption construction and strives to establish an efficient and transparent Lowerer Importance to Sustainable Development of Ganfeng Lithium Higher governance system. Importance to Sustainable Development of Ganfeng Lithium Thegovernance company system. has established a symbiotic and win-win relationship with Importance to Sustainable Development of Ganfeng Lithium partners,The company working has with established upstream and a symbiotic downstream and partners win-win in relationshipthe industry chain with Corporate governance Social responsibility Environment responsibility topartners,The push company forward working hassustainable with established upstream management. and a symbiotic downstream and partners win-win in relationshipthe industry chain with Corporate governance Social responsibility Environment responsibility topartners, push forward working sustainable with upstream management. and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Ganfeng Lithium Co.,Ltd. Sustainable 2020 Sustainability Report 14 Development Management 15

Statement of the Board of Directors Stakeholder Engagement

Ganfeng Lithium is well aware of the importance of sustainable development to the Company. We have established an effective sustainable development governance and management mechanism to effectively integrate the requirements of sustainable development into the Company's operation and management, in order to create long-term stable value for We attach great importance to communication with stakeholders. We regularly collect opinions and suggestions from the environment, society and the Company. internal stakeholders including employees and senior management through various channels, as well as feedback and expectations from external stakeholders such as the government, customers, suppliers and media. Ganfeng Lithium’s Board of Directors is the highest responsible and decision-making body for ESG matters, assuming full responsibility for the Company's ESG strategy and construction. In order to effectively fulfill the management and Means of Communication Stakeholders Demand and Expectations supervision responsibilities of the Board of Directors on ESG affairs, the Company has established a board-level and Response Sustainable Development Committee and formulated the Working Rules for the Board's Sustainable Management Committee. Specifically, the Sustainable Development Committee is composed of three directors, responsible for formulating the Company's sustainable development goals and development plans, and supervising the operation of the Complying with laws and regulations Operating according to sustainable development system for the Company's business segments. Under the Sustainable Development Committee, Paying taxes according to law relevant regulations Government the Sustainable Development Executive Committee has been established, with the Sustainable Development Office and Supporting economic development Paying taxes according to law the Carbon Emission Working Group concretely coordinating the detailed work of various functional departments and subsidiaries on sustainable development. The Company sets ESG targets involving exhaust gas emissions, energy and resource utilization, etc., and the Board of Directors regularly reviews the completion of these targets. Timely disclosure of business Return on investment Based on the external social and economic environment and the Company's development strategy, Ganfeng Lithium information Business and profit growth attaches great importance to the expectations and demands of all stakeholders by conducting regular stakeholder Shareholders Shareholders' meeting surveys and having the Board of Directors review material ESG issues, analyze the Company's ESG risks and Risk management Investment Summit opportunities, and determine the important tasks for the year based on the results of materiality analysis. Information disclosure Roadshow In 2020, according to the ESG development work plan, Ganfeng Lithium improved the construction of the IATF 16949 management system, refined the risk management process and capacity building, and built an information security platform to consolidate the foundation of ESG management on all fronts. At the same time, the Company formulated Stable supply of goods Signing a long-term agreement the Ganfeng Lithium Code of Conduct for Suppliers, Due Diligence Management Control Procedures for Responsible High-quality products and services Guaranteeing service quality Mineral Supply Chains and other system documents to urge suppliers to strengthen ESG construction and reduce Customers Meeting diverse needs of customers Customer information protection potential ESG risks in corporate operation from the external environment. Creating value for customers Customer satisfaction survey This report fully discloses the progress and achievements of Ganfeng Lithium's ESG work in 2020, and was reviewed and approved by the ESG Committee and the Board of Directors on March 30, 2021. Safeguarding employees’ rights and Providing good compensation interests and benefits Sustainable development management structure of Ganfeng Lithium Employees Improving paths to development Improving paths to career Protecting occupational health development Sustainable Development Balancing work and life Implementing employee training Committee Performing contracts according to law Sustainable Development Executive Committee Partners Open, fair and just procurement Fulfilling contracts Open tender Sustainable Development Office Carbon Emission Working Group Carrying out project cooperation

Due Diligence Management Team for Environmental protection Managing emissions Responsible Lithium Supply Chain Energy savings and emissions Improving resource and energy Environment reduction efficiency

Strategy centre centre Supply chain centre Engineering centre Technology centre Marketing centre Management centre Accounting department Auditing business unit Lithium chemical business unit Lithium battery business unit Overseas subsidiaries Other Ecological conservation Managing hazardous chemicals

Participating in community Participating in community Society and development development the Public Supporting philanthropy Supporting philanthropy Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 Ganfeng Lithium Co., Ltd. 2019Ganfeng Sustainability Lithium Co.,Ltd. Report 18 17 Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 18 Sustainable17 Ganfeng Lithium Co., Ltd. 20202019 Sustainability Sustainability Report Report 18 16 Development17 Management 17 18

Materiality Analysis ResponseResponse to UN SDGs to UN SDGs MaterialityMateriality Analysis Analysis Response to UN SDGs

In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking The company continuously helpsGanfeng the families Lithium's of poor Practicesemployees to get out of poverty. 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Over the years, we in 2020 theinremained capital Hong Kongmarketsthe same Stock and as Exchange, thatin accordance in 2019. sorted with out the the requirements sustainable development of the Appendix issues 27 relatedESG Reporting to the industry Guide and to the the Listing company. Rules Upon on The company continuously helps the families of poor employees to get out of poverty. Over the years, we thein capital Hong Kongmarkets Stock and Exchange, in accordance sorted with out the the requirements sustainable development of the Appendix issues 27 relatedESG Reporting to the industry Guide and to the the Listing company. Rules Upon on haveThe company actively participatedcontinuously in helps poverty the alleviation,families of poorhelped employees improve theto get lives out of of poor poverty. residents Over andthe years,sent gifts we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. 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The company cooperates with universities and research and completeThe company disclosure used of questionnairesinformation related to determine to operation the andextent management. and boundaries In 2019, of disclosure we recovered of these a total issues of 12 to copies ensure accurate and For more than 10 years, the company has assisted needy students in various forms such as The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and institutesFor more tothan carry 10 outyears, projects the company that train hasprofessionals assisted needy in the studentslithium industry. in various forms such as The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and fundingFor more for than study 10 and years, music the classroom company building.has assisted The companyneedy students cooperates in various with universities forms such and as of executivecompleteThe companyquestionnaire disclosure used and questionnairesof information 116 copies relatedtoof determinestakeholder to operation the questionnaire, extent and management.and boundaries and collected In of2019, disclosure opinions we recovered andof these suggestions a issues total of to from12 ensure copies all accurate of executive and fundingFor more for than study 10 and years, music the classroom company building.has assisted The companyneedy students cooperates in various with universities forms such and as complete disclosure of information related to operation and management. 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Theproportion production of female wastewater executives andgradually. domestic sewage generated by the company's operations are on sustainable development was finalised and reported to the company's board of directors for approval. proportion of female executives gradually. on sustainable development was finalised and reported to the company's board of directors for approval. Theproportion production of female wastewater executives and gradually. domestic sewage generated by the company's operations are properly properlyThe production treated wastewater to reach standards and domestic and thensewage discharged generated to bymunicipal the company's sewage operations pipe networks are properlywithout The production wastewater and domestic sewage generated by the company's operations are properly pollutingtreatedThe production to local reach rivers wastewaterstandards and lakes. and and then domestic discharged sewage to municipal generated sewage by the pipecompany's networks operations without polluting are properly local treatedThe production to reach wastewaterstandards and and then domestic discharged sewage to municipal generated sewage by the pipecompany's networks operations without polluting are properly local Materiality matrix of sustainable development riverstreated and to reachlakes. standards and then discharged to municipal sewage pipe networks without polluting local MaterialityMateriality matrixmatrix ofof sustainablesustainable development development riverstreated and to reachlakes. standards and then discharged to municipal sewage pipe networks without polluting local Materiality matrix of sustainable development rivers and lakes. Materialityissues matrix of Ganfeng of sustainable Lithium developmentin 2019 Therivers company and lakes. has replaced coal with steam and natural gas step by step and leveraged rooftop issuesissues of GanfengGanfeng Lithium Lithium in in 2019 2020 The company has replaced coal with steam and natural gas step by step and leveraged rooftop issues of Ganfeng Lithium in 2019 photovoltaicThe company powerhas replaced generation coal with and steam self-produced and natural energy gas step storage by step batteries and leveraged to increase rooftop the use of issues of Ganfeng Lithium in 2019 photovoltaicThe company power has replaced generation coal and with self-produced steam and natural energy gas storage step by batteries step and to leveragedincrease therooftop use photovoltaicThe company power has replaced generation coal and with self-produced steam and natural energy gas storage step by batteries step and to leveragedincrease therooftop use cleanphotovoltaic energy. power generation and self-produced energy storage batteries to increase the use ofphotovoltaic clean energy. power generation and self-produced energy storage batteries to increase the use ofphotovoltaic clean energy. power generation and self-produced energy storage batteries to increase the use of clean energy. Theof clean companycompany energy. supports supports the the development development of strategic of strategic emerging emerging industries industries that facilitate that facilitate sustainable sustainable economic growth, bans The company supports the development of strategic emerging industries that facilitate sustainable economic growth, bans Medium importance Higher importance economicThe company growth, supports bans the developmentcompulsory oflabour strategic and emerging child labour industries and that provides facilitate employees sustainable economicwith a growth, bans compulsoryThe company labour supports and thechild development labour and providesof strategic employees emerging with industries a competitive that facilitate salary sustainable and welfare economic system while growth, creating bans compulsoryThe company labour supports and thechild development labour and providesof strategic employees emerging with industries a competitive that facilitate salary sustainable and welfare economic system while growth, creating bans competitiveancompulsory aspiring corporatelabour salary and and culture child welfare andlabour working system and provides atmosphere while creatingemployees so that an withemployees aspiring a competitive corporatetake pride salary inculture working and welfareand for workingGanfeng system Lithium.while creating Importance to stakeholders ancompulsory aspiring corporatelabour and culture child andlabour working and provides atmosphere employees so that withemployees a competitive take pride salary in working and welfare for Ganfeng system Lithium.while creating ancompulsory aspiring corporatelabour and culture child andlabour working and provides atmosphere employees so that withemployees a competitive take pride salary in working and welfare for Ganfeng system Lithium.while creating Resources atmospherean aspiring corporate so that employees culture and takeworking pride atmosphere in working so for that Ganfeng employees Lithium. take pride in working for Ganfeng Lithium. Resources Safety and health an aspiring corporate culture and working atmosphere so that employees take pride in working for Ganfeng Lithium. managementResources Safety and health The company continuously increases investment in technology development, research and innovation, managementResources Safety and health Corporate The company continuously increases investment in technology development, research and innovation, managementResources Safety and health Corporate The company continuously increases investment in technology development, research and innovation, managementResources Safety and health Corporate attachesThe company importance continuously to the introduction increases andinvestment training ofin scientitechnologyfic research development, personnel research and maintains and innovation, innovation management Safety and health CorporategovernanceCorporate Theattaches companycompany importance continuously continuously to the introduction increases increases andinvestment traininginvestment ofin scientitechnology in fictechnology research development, personneldevelopment, research and maintains research and innovation, innovation and Resourcesmanagement Product quality and safety governanceCorporate attaches importance to the introduction and training of scientific research personnel and maintains innovation Product quality and safety governanceCorporate vitalityattaches and importance ability to drive to the industrial introduction upgrading. and training of scientific research personnel and maintains innovation Product quality and safetygovernancegovernance vitalityattaches and importance ability to drive to the industrial introduction upgrading. and training of scientific research personnel and maintains innovation management Responsible procurement Product quality and safety governance innovation,vitalityattaches and importance ability attaches to drive to importance the industrial introduction toupgrading. the and introduction training of scientiand trainingfic research of scientific personnel research and maintains personnel innovation and Responsible procurement Product quality and safety vitality and ability to drive industrial upgrading. 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Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Materiality Analysis Response to UN SDGs

In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. Upon have actively participated in poverty alleviation, helped improve the lives of poor residents and sent gifts discussion and screening by the Sustainable Development Office, we arrived at 22 sustainable development issues for the year. to poor households on festive occasions.

The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and For more than 10 years, the company has assisted needy students in various forms such as complete disclosure of information related to operation and management. In 2019, we recovered a total of 12 copies of executive funding for study and music classroom building. The company cooperates with universities and questionnaire and 116 copies of stakeholder questionnaire, and collected opinions and suggestions from all stakeholders on the research institutes to carry out projects that train professionals in the lithium industry. company's sustainable development management which will serve as important basis and direction for the company's future. In opposition to gender discrimination, the company implements equal pay for equal work for Based on the evaluation of all social responsibility issues by stakeholders and executives, the company's 2019 materiality matrix men and women, protects the legal rights and benefits of female employees and increases the on sustainable development was finalised and reported to the company's board of directors for approval. proportion of female executives gradually.

The production wastewater and domestic sewage generated by the company's operations are properly treated to reach standards and then discharged to municipal sewage pipe networks without polluting local Materiality matrix of sustainable development rivers and lakes. issues of Ganfeng Lithium in 2019 The company has replaced coal with steam and natural gas step by step and leveraged rooftop photovoltaic power generation and self-produced energy storage batteries to increase the use of clean energy.

The company supports the development of strategic emerging industries that facilitate sustainable economic growth, bans compulsory labour and child labour and provides employees with a competitive salary and welfare system while creating an aspiring corporate culture and working atmosphere so that employees take pride in working for Ganfeng Lithium.

Resources Safety and health management The company continuously increases investment in technology development, research and innovation, Corporate governance attaches importance to the introduction and training of scientific research personnel and maintains innovation Product quality and safety vitality and ability to drive industrial upgrading. Responsible procurement

Waste and chemicals Emission The company respects and protects the human rights of every employee regardless management of age, gender, disability, race, ethnicity, origin, religion or economic status and Supplier Employment and labour management eliminates inequality. management Energy management Anti-corruption Environmental impact management Customer service We provide a diverse product portfolio that complies with sustainable development trends. Our products are widely used in new energy storage, urban clean transportation and other fields. Green products and recycling economy The company improves resource utilisation in all aspects of production and operation, strictly manages the use of hazardous chemicals, reduces waste emissions and rationally develops and utilises lithium ore resources Operation with integrity and metal recycling to minimise its impact on the environment. The company regards safe production as the

Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and patent management human rights Energy saving and emission reduction The company actively takes actions for energy saving and consumption reduction to address climate change. A Importance to stakeholders and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building Employee care Development a climate change risk management system and hiring third-party professional institutions to conduct greenhouse and training gas accounting in order to raise its specialty in responding to climate change.

Growth of the The company optimises the construction process during mining operations and actively Community investment company carries out reclamation and greening afterwards to maintain the stability of local ecosystem and protect biodiversity. Lowerer The company continuously improves corporate governance, strengthens anti- corruption construction and strives to establish an efficient and transparent Lowerer Higher governance system. Importance to Sustainable Development of Ganfeng Lithium The company has established a symbiotic and win-win relationship with partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Improving Management to Ganfeng Lithium Co.,Ltd. 20 Consolidate the Cornerstone of Governance 2020 Sustainability Report 21

Improving Corporate Governance Information Disclosure

Ganfeng Lithium strictly abides by the Company Law of the People's Republic of China, Securities Law of the People's Ganfeng Lithium in strict accordance with the relevant laws and regulations, Republic of China, Guidelines for Governance of Listed Companies and other relevant laws and regulations. The Information Disclosure Management System and other provisions, fulfills its Company has formulated and improved a number of systems and regulations including the Articles of Association, information disclosure obligations to ensure truthful, accurate, complete and timely 226 Management Measures for Fundraising, Rules of Procedure of the Shareholders' Meeting, Rules of Procedures of the disclosure of the Company's operations and management and matters that have a Temporary Board of Directors, Rules of Procedures of the Board of Supervisors, Rules of Work for Independent Directors, Outbound material impact on the Company. Investment Management System, External Guarantee System, Information Disclosure Management System, etc. We have announcements continuously improved the construction of the shareholders’ meeting, the Board of Directors and the Board of Supervisors In 2020, the Company published 4 regular reports, 226 temporary announcements for A shares to lay a solid foundation for the standardized operation and long-term sustainable development of Ganfeng Lithium. for A shares and 252 announcements for H shares in both Chinese and English on the Company's official website, "Securities Times", www.cninfo.com, and the official Ganfeng Lithium attaches great importance to the diversified structure of the Board of Directors by electing board members based on multiple factors including age, educational background, professional experience and industry experience, etc. website of the Hong Kong Stock Exchange (http://www.hkex.com.hk/). There was 252 In February 2020, the Company held a general election for the fifth Board of Directors. There are 10 members of the fifth no selective disclosure. The Company proactively accepted market and public Announcements Board of Directors of which 4 are female. supervision to ensure that all shareholders of the Company had equal opportunities for H shares to obtain the Company's information so as to protect investors' right to know. Ganfeng Lithium attaches great importance to the protection of shareholders' rights and interests, and actively maintains close communication with shareholders. We convene a general meeting of shareholders as required every year, treat all shareholders equally, use online voting and separately count the votes of small and medium shareholders to maximize their participation in the Company's decision-making and protect the interests of investors. In the face of shareholders' inquiries, we give explanations in a timely manner, carefully listen to their opinions and suggestions, and ensure the right to know and the right to speak of small and medium shareholders. The members of the Board of Directors and the Board Investor Communication of Supervisors carefully review each proposal and perform their duties diligently. In 2020, the Company held a total of 6 shareholders' meetings,16 meetings of the Board of Directors, 12 meetings of the Board of Supervisors, 3 meetings of the Nomination Committee, 4 meetings of the Audit Committee, 1 meeting of the Remuneration Committee and 1 meeting of the Sustainable Development Committee. The members of the Board of Directors and the Board of Supervisors carefully In accordance with the requirements of laws and regulations and the Investor Relations Management System, Ganfeng review each proposal and perform their duties diligently. Lithium appointed the secretary of the Board of Directors as the person in charge of investor relations, set up an investor relations team to coordinate investor relations, receive visits from shareholders and respond to investor inquiries. The Corporate Governance Structure company has established regular and effective communication channels for domestic and foreign investors, including online interactive platforms, investor hotlines, regular email exchanges, online performance briefings and on-site exchange activities.

In 2020, the Company established a regular "Investor Reception Day", updated the Company's dynamics in a timely manner through multiple channels, and proactively responded to investor inquiries. We carried out 6 on-site investor General communication activities, 1 performance briefing, 1 online "Investor Reception Day" event and 1 online roadshow. We meeting communicated with investors over 300 times via telephone and email and answered more than 380 investor questions Board of via the Shenzhen Stock Exchange Interactive Exchange Platform for investors to have a thorough and comprehensive supervisors understanding of the Company. In 2020, the Company was recognized as one of the "Top 50 Most Popular Listed Companies among Institutions".

Board of directors Ganfeng Lithium attended the 2020 Collective Investor Reception Day of Listed Companies in Jiangxi

On July 17, 2020, Ganfeng Lithium's chairman, chief financial officer and secretary of the Board of Directors Audit Nomination Remuneration Strategy Sustainable development jointly attended the "High-quality Communication to Promote High-Quality Development" 2020 Collective committee committee committee committee committee Investor Reception Day of Listed Companies in Jiangxi. Affected by the epidemic, this event was held in the form of an online Q&A. Representatives of the Company had a robust exchange with investors, answering questions about its development strategies, operating conditions, financing plans and sustainable development among other issues of concern to investors.

Operation and management department Improving Management to Ganfeng Lithium Co.,Ltd. 22 Consolidate the Cornerstone of Governance 2020 Sustainability Report 23

Ganfeng Lithium conducted special training on investor protection Information Security Construction

In June 2020, Ganfeng Lithium launched the 2020 Publicity Month to Prevent Illegal Securities and Futures. Centering on the theme of "Reasonable Investment to Avoid Illegal Securities and Futures Traps", combined with our own Ganfeng Lithium insists on strict control over the Company's information security risks from the institutional and technical situation, a variety of publicity activities were carried out to guide employees away from illegal fundraising and to perspectives. We continuously improve the construction of information systems, optimize computer encryption and consciously strengthen risk prevention awareness. perception systems, offer industrial control information security training for employees, and detect computer virus on a Relevant publicity information was collected from the risk warning section of the China Securities Regulatory regular basis to prevent information leakage. Commission website and other websites. Promotional activities were carried out in various ways, such as playing promotional videos on the Company's LED In 2020, the Company further optimized information security measures, started the construction of an information security displays to prevent illegal fund-raising, posting promotional posters, distributing brochures and publicizing on the risk platform, and promoted the construction of an information security system in combination with security research and internal office platform, etc. judgment, event monitoring, risk management and emergency response in the overall business operating environment. Led by the Company's securities department, special training was offered on "Rational Investment to Avoid Illegal Securities and Futures Traps". The implementation of the information security system and platform enabled early warning, event control and post-event traceability in daily work, which effectively reduced the risk of illegal destruction, theft or loss of the Company's business and resource information, thereby ensuring the security of the Company's business operating environment.

Reinforcing Risk Management and Control While improving the information security system, we have further improved our ability to identify information risks. As of the end of 2020, our IT system had realized such functions as real-time perception of network threat status, timely positioning and solution of potential or existing risks and problems in network resources to prevent escalation of The Company continuously strengthens its risk management and control system to improve its management in accordance with information security incidents, and providing reliable data support for security construction of the IT department. laws and regulations. In 2020, the Company achieved remarkable results with IATF 16949 management system construction by system sorting and system construction. Many production bases such as Basic Lithium Plant and Yichun Ganfeng passed IATF 16949 and ISO 9001 certifications. In addition, we systematically assessed the risk points in our production process and the Company's information security risk points, actively carried out risk response and avoidance actions, and comprehensively strengthened the Company's management.

The Company upgraded the ERP system to comprehensively improve the efficiency and accuracy of information accounting.

In 2020, the Company invested 6.5 million Yuan to upgrade the ERP system. By building a unified production and operation management and control platform, standardizing the basic data and business processes of capital flow, material flow and information flow, we achieved the integration of production, procurement, sales, inventory, quality control, human resources, capital and other business operations. The digitized management status and systematized quality data allowed internal business data to be fully shared, which effectively improved the Company's accounting efficiency and accuracy.

The Company launched a network security system and platform construction to effectively improve information security management.

In order to ensure the Company's information security and strengthen its awareness of cyber threats and emergency response capabilities, the Company needed to establish a comprehensive platform that Risk Identification and Assessment can identify, monitor, respond and manage the security situation for the Company's overall operating environment, thereby addressing the Company's need for security in line with its rapid development. In January 2020, the Company launched construction of a network security system and platform. After more than half a year of hard work, the platform has realized such functions as real-time perception of the status The Company has formulated the Risk Identification and Evaluation Control Form for Internal and External Factors and of network threats, accurate positioning of potential or current risks in network resources, and targeted Risk Identification and Evaluation Control Form for Relevant Parties' Demands and Expectations, using SWOT analysis and network analysis. The platform provides reliable data support to rapidly handle risks and consolidate safety PEST analysis for each risk point in the production process. We organize each factory and production department to conduct comprehensive identification and evaluation of risk points, guide and coordinate all levels to achieve risk management goals construction, which effectively controls the occurrence of security incidents, thereby achieving expected and carry out risk responses, and unify risk evaluation standards to enhance the Company's overall risk response capabilities. results. The Company classifies risks as high, medium and low according to the probability and severity, determines the responsible department and response for each risk, and establishes specific improvement measures to reduce risks and improve the Company's ability to resist risks. Improving Management to Ganfeng Lithium Co.,Ltd. 24 Consolidate the Cornerstone of Governance 2020 Sustainability Report 25

In 2020, we further revised the Management Regulations for Anti-bribery, Anti-Corruption, Anti-fraud and Reporting and Abiding by Business Ethics established an integrity and self-discipline account to reward employees for proactively turning in commercial bribes and other improper business gifts.

Ganfeng Lithium strictly abides by the business ethics of honesty and trustworthiness, integrity and self-discipline, Adhering to the principle of "combining prevention and punishment with a focus on prevention", we regularly carry out and has a zero-tolerance attitude towards unethical behavior such as corruption and fraud. We have set up an audit anti-corruption training and integrity culture education for cadres and ordinary employees at all levels to popularize anti- department to promote the establishment of the Company's internal control system and reporting and punishment corruption and integrity knowledge to all employees. In 2020, the Company carried out 7 anti-corruption education and mechanism, and supervise and inspect the implementation of anti-corruption work, and have simultaneously set up a training activities for management cadres, department heads and ordinary employees, with a total training time of 28 disciplinary inspection and supervision team to investigate and handle reported cases. By incorporating anti-corruption hours, thereby realizing full coverage of anti-corruption education. work into routine management, we have established an effective system for prevention and punishment of fraud. Ganfeng Lithium resolutely rejects any violations such as money laundering. In 2020, we renewed the Management We strictly implement the Anti-Corruption Anti-Bribery Control Procedure Document and other internal policies, clarify the Regulations for Anti-Money Laundering and Anti-Terrorist Financing and Anti-Trade Discrimination Management red line of commercial operation, conduct supplier audits during the bidding period and follow up on the anti-corruption Regulations and formulated response plans to systematically standardize and strengthen the Company's work on anti- publicity and implementation in later periods. We require employees in important positions, all customers, suppliers and money laundering, anti-terrorist financing and anti-trade discrimination, so as to fully protect the Company's interests and contractors with whom the company has business dealings to sign the Letter of Commitment to Anti-Bribery and Anti- economic security. Corruption to achieve full coverage of anti-corruption work.

In order to further eliminate unethical business practices such as bribery and corruption, Ganfeng Lithium encourages employees and all parties that have direct or indirect business relationships with the Company to report fraudulent 0 Litigation cases on anti-bribery/ anti-corruption/ behavior. We publicize telephone numbers and e-mail addresses for complaints and reports on the Company's official anti-money laundering website, office areas and other locations, and have set up reporting mailboxes. All parties can report information about actual or suspected fraud cases to the Company and its staff. We take strict measures to protect whistleblowers and reward those who provide valuable clues.

The Company's Reporting Ganfeng Lithium Launched a Theme Activity of “Advocating and handling process Integrity and Self-Discipline to Fight Corruption” Report cases (By phone, email, visit, etc.) On June 15, 2020, Ganfeng Lithium launched business ethics training. The training mainly focused on the Management Regulations for Anti-corruption, Anti-bribery, Anti-fraud and Reporting. While explaining the systems, the training Submitted to emphasized that all employees of the Company should sign a Letter of Commitment to Anti-Corruption and Anti-Bribery, requiring employees to live and work in an integrated and clean manner. For suppliers that are currently cooperating Audit department Case filing with us, we also require them to sign a Letter of Commitment to Anti-Corruption and Anti-Bribery for Suppliers.

Report to

Chairman

Transfer Establishing the investigation plan Relevant departments Audit department Taking investigative involved measures Interviewing the parties involved and listening to opinions

Preparing the investigation report Review meeting

Decision-making and Informing the whistle-blower of Anti-corruption, anti-bribery and anti-fraud training session enforcement the handling result

Archiving Leading Industrial Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 26 Transformation with Comprehensive Layout 27

Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 Materiality Analysis Response to UN SDGs 18

MaterialityIn 2019, we carried Analysis out different forms of interaction and communication with stakeholders and completed a benchmarking Response to UN SDGsGanfeng Lithium's Practices analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. 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Importance to stakeholders The company continuously increases investment in technology development, research and innovation, management and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building issues of Ganfeng Lithium in 2019 CorporateOperation with integrity and metal recycling to minimise its impact on the environment. The company regards safe production as the Employee care The company hasattaches replaced importance coal with steam to the andintroduction natural gas and step training by step of scienti and leveragedfic research rooftop personnel and maintains innovation Development governance a climate change risk management system and hiring third-party professional institutions to conduct greenhouse Product quality and safety Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and and training photovoltaic powervitality generation and ability and to self-produced drive industrial energy upgrading. storage batteries to increase the use Responsible procurement patent management gas accounting in order to raise its specialty in responding to climate change. human rights of clean energy. The company actively takes actions for energy saving and consumption reduction to address climate change. A Waste and chemicals Energy savingEmission and emission reduction Growth of the The company respects and protects the human rights of every employee regardless Importance to stakeholders management The company optimises the construction process during mining operations and actively Community investment and response to climate change company The company supportsof age, the gender, development fewdisability, initiatives of strategic race, are ethnicity, energysaving emerging origin, industries targets religion thatfor or factoriesfacilitate economic andsustainable linkingstatus themand economic to the growth, performance bans of executives, building Employee care Supplier Development a climate changecarries risk management out reclamation system and and greening hiring third-party afterwards professional to maintain institutionsthe stability to of conduct local ecosystem greenhouse Employment and labour management compulsory laboureliminates and child inequality. labour and provides employees with a competitive salary and welfare system while creating managementand training Energy gas accounting inand order protect to raise biodiversity. its specialty in responding to climate change. management an aspiring corporate culture and working atmosphere so that employees take pride in working for Ganfeng Lithium. Lowerer Anti-corruption Environmental impact Growth of the We provide a diverse product portfolio that complies with sustainable development trends. Our Resources managementSafety and health Customer service The company optimisesThe company the construction continuously process improves during corporate mining governance, operations strengthens and actively anti- Community investment management company The company continuously increases investment in technology development, research and innovation, Corporate products are widely used in new energycorruption storage, construction urban clean and tra strivesnsportation to establish and other an fields.efficient and transparent governance attaches importance to the introductioncarries and out training reclamation of scienti andfic greening research afterwards personnel to and maintain maintains the innovationstability of local ecosystem Lowerer Green products and Higher Product quality and safety vitality and ability to drive industrialand upgrading. protect biodiversity.governance system. Responsible procurement recycling economy The company improves resource utilisation in all aspects of production and operation, strictly manages the use

Lowerer Importance to Sustainable Development of Ganfeng Lithium Waste and chemicals Emission The company respectsof hazardous and protects chemicals, the human reduces rightsThe waste of company every emissions employee has and established regardlessrationally developsa symbiotic and and utilises win-win lithium relationship ore resources with management The company continuously improves corporate governance, strengthens anti- Operation with integrity of age, gender, anddisability, metal race,recycling ethnicity,corruption to minimise origin, construction its partners,religion impact and or workingon economicstrives the environment.with to establishupstreamstatus and The anand efficientcompany downstream regardsand partners transparent safe in production the industry as chain the Lowerer Corporate governanceSupplier Social responsibility Environment responsibility Higher Employment and labour management Technology innovation and eliminates inequality.most important responsibility and strivesto push to forward create asustainable safe and healthy management. working environment for its employees. Democracy and management governance system. Energy patent management human rights Importance to Sustainable Developmentmanagement ofAnti-corruption Ganfeng Lithium Environmental impact The company actively takes actions for energy saving and consumption reduction to address climate change. A Customer serviceEnergy saving and emission reduction We provide a diverse product portfolioThe company that complies has established with sustainable a symbiotic development and win-win trends. relationship Our with Importance to stakeholders management and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building Employee care products are widely used in new energypartners, storage, working urban with clean upstream transportation and downstream and other partners fields. in the industry chain Development a climate change risk management system and hiring third-party professional institutions to conduct greenhouse Corporate governance Social responsibilityGreen products and Environment responsibility to push forward sustainable management. and training recycling economy The company improvesgas accounting resource in utilisation order to raisein all itsaspects specialty of production in responding and tooperation, climate change. strictly manages the use Growth of the of hazardous chemicals, reduces waste emissions and rationally develops and utilises lithium ore resources The company optimises the construction process during mining operations and actively Community investment company and metal recycling to minimise its impact on the environment. The company regards safe production as the Operation with integrity carries out reclamation and greening afterwards to maintain the stability of local ecosystem Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and and protect biodiversity. patent management humanLowerer rights Energy saving and emission reduction The company actively takes actions for energy saving and consumption reduction to address climate change. A

Importance to stakeholders The company continuously improves corporate governance, strengthens anti- and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building Employee care corruption construction and strives to establish an efficient and transparent Lowerer Development Higher a climate change risk management system and hiring third-party professional institutions to conduct greenhouse and training governance system. Importance to Sustainable Development of Ganfeng Lithium gas accounting in order to raise its specialty in responding to climate change. Growth of the The company optimisesThe company the construction has established process a duringsymbiotic mining and operations win-win relationship and actively with Community investment company partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility carries out reclamation and greening afterwards to maintain the stability of local ecosystem and protect biodiversity.to push forward sustainable management. Lowerer The company continuously improves corporate governance, strengthens anti- corruption construction and strives to establish an efficient and transparent Lowerer Higher governance system. Importance to Sustainable Development of Ganfeng Lithium The company has established a symbiotic and win-win relationship with partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Leading Industrial Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 28 Transformation with Comprehensive Layout 29

In 2020, Ganfeng Lithium continued to promote the Responding to the National Strategy of "Emission Peak and Carbon globalization of resources, so as to further stabilize raw Neutrality" material channels, obtain a long-term stable supply and effectively reduce risks in all links of the supply chain, thereby providing guarantee for the Company's continuous Ganfeng Lithium actively responds to the national goal of "emission peak and carbon neutrality" and always practices and stable supply of high-quality new energy products. the concept of green development and low-carbon strategies. Combined with our own development status and needs, we integrate climate risk indicators into the existing risk management system, while giving full play to the important role of new energy industries in optimizing the energy structure and construction of an ecological civilization, assisting the We increased our stake in Sonora, a lithium country's 2060 carbon neutrality strategy with practical actions. clay project under Bacanora, so that we will hold 50% of the stake in Sonora after the transaction is completed. New Energy Industries

In the past 20 years, Ganfeng Lithium has gradually operated throughout the lithium industry chain with its business The 10,000-ton lithium salt plant's Phase III lithium hydroxide layout, establishing a full product value chain connecting upstream, midstream and downstream, and promoting the project was completed and put into production country's transformation towards a clean energy structure. In October 2020, the third-phase lithium hydroxide project of Ganfeng Lithium's 10,000-ton lithium salt plant was completed and put into production. The project is designed to produce 50,000 tons of lithium hydroxide per year. After completion, the total production capacity of lithium hydroxide will reach 81,000 tons/year, ranking first in the On the upstream resource side, according to the Roskill report, demand for lithium-ion batteries is world. In 2020, the Company's lithium hydroxide sales accounted for 24% of the world's total. likely to increase by more than 1,000% in 2029. As the core raw material of lithium batteries, the demand for lithium compounds will continue to grow, so the resource-side layout is of great strategic significance to us. Ganfeng Lithium is deploying resources on a global scale. In Australia, Argentina, Upstream Mexico, Ireland, Qinghai, Jiangxi and other places in China, we have multiple spodumene mines in operation to ensure our supply of raw materials. We continuously explore a more abundant portfolio of lithium resources to hedge market risks, actively promote the progress of salt lake and clay projects, extracting lithium from brine to reduce manufacturing costs and improve our environmentally friendly attributes.

On the midstream smelting side, our products cover more than 40 kinds of lithium compounds, including metal lithium, battery-grade lithium carbonate, battery-grade lithium hydroxide, lithium powder, lithium foil and other lithium materials used in battery cathodes, anodes and electrolytes. We have won unanimous praise and trust from customers with leading technological advantages, Midstream reliable quality assurance and excellent service quality. Our products are widely used in emerging industries such as new energy, new materials and new medicines, providing a powerful boost to the development of national strategic emerging industries. At the same time, the Company's lithium salt 10,000-ton lithium salt plant's Phase III lithium hydroxide project was completed and put into production plant in Argentina is gradually showing results, in which the use of solar energy in the production process will effectively increase the sustainability of the supply chain.

Helping the global transition to a low-carbon economy

On the downstream battery side, our battery products involve power batteries, consumer batteries and small lithium polymer batteries, providing customers with diversified and customized lithium battery In the past 20 years, the Company has provided about 260,000 The Company has provided about products. We will continue to advance the research and development of solid-state batteries and high- tons of lithium salt products for the new energy industry chain end polymer lithium batteries, guide customers to replace lead-acid batteries, and further improve the tons of lithium salt to meet the downstream demand of new energy vehicles on all 260,000 energy efficiency and environmentally friendly properties of products. In order to meet the increasing products for the new energy industry demand for energy storage equipment in various fields, we provide energy storage system solutions fronts. From 2015 to 2020, new energy vehicles equipped with Ganfeng Lithium's new lithium salt products drove more than 50 chain In the past 20 years. Downstream covering the entire value chain. We provide large-scale energy storage systems on the power generation side to store clean energy and reduce dependence on fossil fuels, which on the grid side can effectively billion kilometers around the world. These new energy vehicles reduce grid loss, maximize utilization of energy, stabilize power quality and improve utilization of power have helped reduce more than 12.5 million tons of carbon dioxide Helped reduce more than grid equipment. On the user side, consumer-grade energy storage equipment is provided, which uses emissions. The Company fully responds to the national "emission the peak-to-valley price difference to effectively reduce the cost of business operations and household peak and carbon neutrality" strategy by actively devoting itself 12.5 million tons of carbon dioxide electricity. In the future, Ganfeng Lithium will further tilt resources to the lithium battery sector, vigorously within the new energy industry chain and making proactive efforts emissions from 2015 to 2020 support the development of battery products and energy storage systems, and use clean energy to promote social "decarbonization" and contribute to China's 2060 carbon neutrality strategy. to reduce global carbon emissions. Leading Industrial Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 30 Transformation with Comprehensive Layout 31

Response to Climate Change Risk type Risk description Countermeasures

In order to implement the State Council's Starting from customer needs and the In 2020, we proactively identified and analyzed various climate change risks and opportunities in accordance with the deployment and requirements for cultivating development status of the entire industry framework and recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and formulated strategic emerging industries and strengthening chain, the Company actively explores climate risk management methods and response measures in a timely manner, which improved our ability to adapt to energy conservation and emission reduction, the update of new energy technologies, the central government has arranged special climate change. continues upstream layout, expands funds to support the development of subsidies midstream production capacity and actively for private purchase of new energy vehicles. develops the battery sector to break the Market risks The Company is located in the upstream of the new energy automobile industry. As the new growth ceiling in downstream business layout, Risk type Risk description Countermeasures energy automobile subsidies policy remains reduce downstream costs in the new energy unclear, our product demand and market are industry and expand product applications. much affected by the downstream new energy Moreover, we actively develop the application automobile industry policies, while the reduction of recycling technology, improve the recycling Combined with the development experience The Company carefully studies the or cancellation of subsidies directly affect efficiency of waste batteries to realize the of the international carbon emission market, existing carbon disclosure policies for the choice of end customers in the industry the formation and maturity of the national sound and sustainable development of new carbon trading, adjusts the Company's chain and change their consumption behavior, carbon emission trading market, the energy industries, and continuously enhance response strategies in a timely manner in creating an impact on the upstream market. prices of carbon allowances are expected their market appeal. to gradually increase in the future, and accordance with the policies, regulations the number of allowances issued by and carbon market conditions, invites the National Development and Reform third-party agencies to conduct carbon The development of new energy and The Company incorporates the concept of Commission (NDRC) may be tightened. emissions verification of the Company, and new energy vehicles has brought new sustainable development into the procurement Given that the Company's absolute total sets carbon emission reduction targets. development opportunities to the power emissions have increased in the past three process, insists on risk assessment of suppliers Policy risks battery and upstream lithium salt industry. years, after being included in the national In addition, we promote the application and prudently identifies upstream suppliers' Their "clean" attributes are considered to play carbon emissions trading market in the of renewable energy such as wind power ESG management and environmental an important role in responding to climate future, the Company is more likely to face protection measures. We have formulated and hydropower in accordance with local change. However, the environmental impact higher emission costs to meet compliance. Reputational the Code of Conduct for Suppliers to guide conditions to promote the transformation caused by the process of lithium extraction At the same time, in response to the annual risks and regulate their resources consumption of the existing energy use structure and and the recycling and treatment of waste carbon emission report and verification batteries is widely controversial, and to a and emission control and encourage them requirements required by the NDRC, the reduce corporate carbon emissions. certain extent, has a negative impact in to assume environmental responsibilities. Company must hire a third-party verification public opinion on their "clean" attributes. Furthermore, we promote higher-level agency to verify the Company's annual As investors pay more attention to the non- suppliers to recognize and adopt Ganfeng carbon emissions and submit a verification financial impact of companies and industries, report to the NDRC as scheduled, which Lithium's Code of Conduct for Suppliers to it may have a negative impact on the further increases management costs. create a green and sustainable responsible Company's investment chain. supply chain.

The Company needs to consider the The Company actively introduces advanced The Company’s mines are located in Ningdu For new large-scale projects and reconstruction impact of climate change, including low-carbon production technologies and County, Jiangxi Province. It is an area with a and expansion projects, the Company carries temperature changes and extreme high incidence of geological disasters such concepts at home and abroad, vigorously out targeted assessments of hydrological, weather, on battery performance when as landslides and mudslides during the flood Acute risks geological and climatic conditions during the carries out R&D and upgrade of energy- season. If the frequency of natural disasters developing power battery products. If preliminary environmental impact assessment we fail to successfully invest in new saving technical improvement projects, increases in the future, the Company needs process to avoid environmental, economic and technologies for adapting products to eliminates outdated production capacity, to increase investment in fixed assets physical risks brought by extreme weather to climate change, there will be a negative and improves energy efficiency to realize related to infrastructure reconstruction or impact on our strategic cooperation maintenance. the construction and operation of projects. low-carbon production. Technological with downstream customers and the Company's investment will be affected. risks The Company's current greenhouse Climate change has exacerbated water The Company has formulated a water footprint emission levels are increasing. As shortages, and the water consumption of plan and increased recycling efforts through industrial energy-saving requirements lithium mining is huge. In the future, the measures such as steam condensate reuse. In become more stringent, it is necessary to Company's water withdrawal conditions may addition, the 10,000-ton lithium salt plant has deploy and apply more energy-saving and built an ecological lake, so that the industrial Chronic risks change, resulting in higher water withdrawal environmentally friendly technologies and wastewater after purification and treatment is or water costs. processes, and set up special investment collected in the ecological lake and reused for in energy conservation and emission road cleaning, tree watering, workshop road reduction to reduce the Company's carbon cleaning, etc., thereby promoting the efficient emissions. use of water resources. Leading Industrial Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 32 Transformation with Comprehensive Layout 33

Boosting Circular Industries

With the new energy vehicle products from early promotion and application gradually entering the end of their service Schematic Diagram of Ganfeng Lithium’s Lithium Recycling Solutions life, the number of retired batteries produced has scaled up. If not safely disposed of, they will cause serious harm to the ecological environment. The creation of a complete battery recycling system is not only more conducive to environmental protection, but also allows the resources and energy in waste materials to be fully and effectively recycled, conducive to the sustainable development of society.

Based on existing resources such as lithium chemical plants, ternary precursor chemical plants, metal lithium plants, battery plants, etc. in the industrial ecosystem, Ganfeng Lithium is actively deploying in the recycling technology industry and creating Energy storage Ganfeng Lithium a comprehensive recycling project for decommissioned lithium batteries. On the one hand, we efficiently extract various batteries Energy Storage recyclable metals in batteries to help customers address product recycling and reduce carbon emissions; on the other hand, Battery Plant Lithium iron Echelon utilization we effectively use these renewable raw materials for processing to provide unique green renewable products with Ganfeng phosphate batteries Small power Lithium characteristics and help customers build a more sustainable supply chain. We make use of our complete and mature batteries sales channels to allow all kinds of resources to return to the market through corresponding channels after extraction, which STEP 1 completes the recycling of resources, realizes the closed loop of the industry and builds a green ecological industry chain with Nickel-cobalt-manganese Discharging / ternary batteries dismantling / breaking customers. Retired batteries after a certain number Ganfeng Lithium Other types of batteries Pretreatment In 2020, Ganfeng Lithium focused on technological innovation in the recycling technology sector to improve the recycling of years of use Center efficiency of used batteries. We independently developed the in-depth and high-value utilization technology of waste lithium Other types of Energy storage scenario iron phosphate batteries, and realized the fine separation and recycling of waste lithium iron phosphate batteries on a large products that use batteries Defective batteries in the scale. Through pyrolysis and fluorine fixation technology, the problem of fluorine pollution from waste batteries was effectively production process solved; through de-weighting technology, heavy metals such as nickel, cobalt and copper that may be introduced in iron- lithium waste were recovered to solve the problem of heavy metals entering ferro-phosphorus, truly realizing the sale of ferro- 29 13 Cu AI phosphorus by-products. copper aluminium Case cathode anode material material Copper aluminum

On July 14, 2020, Ganfeng Lithium was selected as the first candidate to win the bid as the 2020 Green Manufacturing System Solution Provider by the Ministry of Industry and Information Technology (MIIT). STEP 2 Refining In November 2020, Ganfeng Lithium's "Comprehensive Recovery and Utilization Technology of Waste

Lithium-ion Battery" was selected for the Green Technology Catalog of Jiangxi Province. Ganfeng Lithium Deep Processing Center On January 21, 2021, the MIIT released the second batch of companies that meet the "Industry Standards STEP 3 STEP 3 and Conditions for the Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles". Jiangxi Processing Processing Ganfeng Lithium Recycling Technology Co., Ltd. was successfully selected. Li NCM lithium solution Nickel cobalt manganese Ganfeng Lithium purification solution Ganfeng Lithium Ternary Chemical Plant Precursor Plant

2020 Nickel, cobalt and manganese Recycle rate of nickel, 年，贛鋒鋰業共回收處理報廢 produced by processing ternary cobalt and manganese over 電池、電芯、極片及粉末等總計 recycled green 3 28 25 Battery grade lithium carbonate / lithium chloride / Nickel powder / waste tons Li Ni Mn Manganese sulfate 1,400 98% materials Lithium lithium hydroxide Nickel nickel sulfate Manganese

7,200 27 Cobalt powder / nickel sulfate / cobalt carbonate / Battery Co 噸 Cobalt production cobalt oxalate / cobaltosic oxide / cobalt chloride NCA (Nickel Cobalt Aluminum) / NCM (Nickel Cobalt Manganese) ternary precursor Recycle rate of lithium over 處理鐵鋰類廢料產出氯化鋰 90% 1,500 噸 Leading Industrial Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 34 Transformation with Comprehensive Layout 35

Supplier Management Ganfeng Lithium led the first national science and technology project

Ganfeng Lithium strictly abides by the Law of the People's Republic of China on Bidding and Tendering and other On July 12, 2020, the "Technology and Demonstration of Efficient and Clean Recycling of Retired Ternary Lithium laws and regulations, and has formulated such documents as the Administrative Measures for Bidding, Negotiated Battery Materials" national key R&D project led by Ganfeng Lithium was officially launched. Tendering and Contract Review and Supplier Management Procedures within the Company to form a systematic At the level of scientific and technological development, this project will systematically reveal management system for supplier access management and daily management and to improve management the multi-phase interface destruction and precise separation mechanism for decommissioned efficiency. ternary lithium battery materials, as well as the directional conversion and echelon high-value recovery mechanism, so as to achieve a leading international level in the clean recycling of ternary lithium battery materials; As of the end of 2020, 2,473 outside the 3 international During the year, the At the level of application support, this project will develop 3 sets of high-efficiency and clean the Company had a province suppliers Company conducted recycling technology systems and equipment adapted to ternary lithium battery materials of total of suppliers annual factory audits for different decommissioning characteristics, coordinate the construction of a whole-process 307 pollution control technology system to form a systemic solution of "fine classification-efficient in Jiangxi Province 17 suppliers. conversion-clean utilization-intensive processing-precise pollution control", and establish a green recycling demonstration production line.

In the future, Ganfeng Lithium will continue to carry out research on battery recycling technology, promote mature battery recycling solutions and jointly create a green, clean and healthy path for the development and progress of Supplier selection Supplier classification Supplier evaluation mankind.

The Company has The Company implements The Company has established a strict supplier different quality controls established a supplier OTD access management according to the impact of to assess suppliers from four system, involving screening, suppliers’ products on the indicators: supply qualification information verification, quality of the Company's rate, delivery punctuality rate, evaluation and review, on- finished products. At the same supplier delivery PPM and site inspection, performance time, to ensure the sustainability additional freight frequency. review and improvement, of the supply chain, the Suppliers are evaluated every etc. to comprehensively Company signs with suppliers quarter based on the four evaluate suppliers from the Letter of Commitment to indicators in combination multiple dimensions such as Anti-Bribery and Anti-Corruption with such aspects as cost, manufacturing, quality control, for Suppliers, Code of Conduct quality complaints, services, innovation capability, social for Suppliers, Confidentiality systems, etc. Suppliers that responsibility, etc. In order Agreement, Quality Assurance fail the annual evaluation to ensure product quality, Agreement, Environmental will be disqualified as our we strictly follow the process Protection Agreement and suppliers. starting from market surveys, Commitment to Not Using followed by sample testing to Environmental Hazardous the use of small batches, and Substances, etc., and requires Kick-off meeting for "Technology and Demonstration of Efficient strictly control the admission suppliers to have professional and Clean Recycling of Retired Ternary Lithium Battery Materials" of suppliers of qualified raw qualifications such as quality materials, packaging, labor management system, safety protection supplies, etc. production, environmental Building Responsible Supply Chains Together management system, etc. and to update them monthly.

Ganfeng Lithium actively fulfills responsible procurement by incorporating suppliers into the scope of anti-corruption, quality control and management, while integrating the concept of sustainable development into supply chain In 2020, thanks to the IATF 16949 certification guidance, Ganfeng Lithium improved on all fronts including supplier management, in order to reduce social and environmental risks in the industrial chain and develop collaboratively with management, quality control of products provided by suppliers, etc. suppliers to build responsible supply chains. Leading Industrial Ganfeng Lithium Co.,Ltd. 2020 Sustainability Report 36 Transformation with Comprehensive Layout 37

Due Diligence Management of Supply Chains In terms of lithium ore procurement, Ganfeng Lithium has always adhered to the supplier management principles of "transparency in the supply chain, responsible procurement, no human rights issues and limited environmental impact" and the "five-step method" required by due diligence management procedures in due diligence management of the lithium supply chain. We regularly collect upstream supplier information through KYS (Know Your Supplier) processes and other procedures and conduct Conflict Affected and High-Risk Areas (CAHRAs) assessments to understand their In the context of the global transition to a low-carbon economy, the awareness of responsible consumption is gaining links such as raw material mining, transportation, processing, etc. We also conduct risk assessment on suppliers and momentum, so building and maintaining responsible supply chains is of great significance to the international formulate and implement risk mitigation plans. development of Ganfeng Lithium. Adhering to sustainable development-oriented responsible supply chain decision- As of the end of 2020, the Company's spodumene resources were all from Australia with no artisanal mining or making, Ganfeng Lithium actively explores the shaping of responsible supply chains, undertakes the transfer of procurement by intermediate traders, and we had signed off-take agreements with upstream suppliers to ensure definite responsibilities throughout the upstream and downstream of the industry, and reduces the social and environmental risks sources of minerals, controllable risks and traceability, thus to avoid the risk of conflict minerals. in the industry chain to realize both economic value and environmental value in the industry. In response to issues in the risk identification and assessment process, Ganfeng Lithium organized discussions with In 2020, the Company set up a due diligence management team for a responsible lithium supply chain under the relevant departments of the Company, formulated risk mitigation plans and actively carried out supplier communication Sustainable Development Committee, which is headed by the executive vice president. We established the industry's to solve related problems with joint efforts. first due diligence management system and related procedural documents for the lithium supply chain including the Ganfeng Lithium Code of Conduct for Suppliers, Due Diligence Management Control Procedures for Responsible Mineral In 2020, Ganfeng Lithium received a total of 12 due diligence audits on the Company from third-party agencies hired by Supply Chains, etc. to promote the due diligence management of supply chains. We incorporated the due diligence Daimler, Volkswagen, BMW, Tesla, Apple and other customers. The auditors assessed the due diligence management of management process for supply chains into the sustainable development system, clearly incorporating supplier safety, Ganfeng Lithium's lithium supply chain. The due diligence management team for responsible lithium supply responded environmental protection and social requirements into the Code of Conduct for Suppliers, in order to guide and regulate to the proposed improvement plan in a timely manner, implemented the improvement work in a concrete manner and the behaviors of upstream lithium ore suppliers from a number of aspects including law-abiding operations, compliance regularly reported the improvement progress, in order to enhance the level of due diligence management in the supply employment, resource consumption, emission control, health and safety, business ethics, etc. and encourage them to chain. assume more environmental and social responsibilities.

In 2020, the Company set up a section on supply chain management on its official website to fully display the Company's demand for supply chains and provide a complaint mechanism. It not only put forward higher requirements to suppliers, Audits on the due diligence management of supply chains but also provided a communication and feedback mechanism, reducing the communication cost of the industrial chain and improving its transparency. In 2020, our customer BMW commissioned a third-party organization RCS to audit the Company's due diligence management of supply chains. It was a comprehensive audit of the Company's existing supply Organization structure of the due diligence management team for responsible chain management system, which raised issues while presenting an improvement plan to enhance the supply chains Company's supply chain management capabilities.

Team leader, vice president Mining, fine dressing Port of shipment Unloading port Road transport By sea Australia Australia Zhenjiang, China Kalgoorlie Esperance Deputy team leader, Import and Export Department

Destination plant Inland waterway port Lithium Road transport Inland water transport Human Material Foreign Domestic Document 負責鋰供應鏈 Supply Chain Ganfeng Xinyu Nanchang Resources Management Customer Customer Control 礦產專員 Minerals Specialist Specialist Specialist Specialist Specialist Specialist

Spodumene supply chain Becoming a Pioneer in the Lithium Industry with Proactive Innovation Ganfeng Lithium Co.,Ltd. 38 2020 Sustainability Report 39

Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Materiality Analysis Response to UN SDGs

In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. Upon have actively participated in poverty alleviation, helped improve the lives of poor residents and sent gifts discussion and screening by the Sustainable Development Office, we arrived at 22 sustainable development issues for the year. to poor households on festive occasions.

The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and For more than 10 years, the company has assisted needy students in various forms such as complete disclosure of information related to operation and management. In 2019, we recovered a total of 12 copies of executive funding for study and music classroom building. The company cooperates with universities and questionnaire and 116 copies of stakeholder questionnaire, and collected opinions and suggestions from all stakeholders on the research institutes to carry out projects that train professionals in the lithium industry. company's sustainable development management which will serve as important basis and direction for the company's future. In opposition to gender discrimination, the company implements equal pay for equal work for Based on the evaluation of all social responsibility issues by stakeholders and executives, the company's 2019 materiality matrix men and women, protects the legal rights and benefits of female employees and increases the on sustainable development was finalised and reported to the company's board of directors for approval. proportion of female executives gradually.

The production wastewater and domestic sewage generated by the company's operations are properly treated to reach standards and then discharged to municipal sewage pipe networks without polluting local Materiality matrix of sustainable development rivers and lakes. issues of Ganfeng Lithium in 2019 The company has replaced coal with steam and natural gas step by step and leveraged rooftop photovoltaic power generation and self-produced energy storage batteries to increase the use of clean energy.

The company supports the development of strategic emerging industries that facilitate sustainable economic growth, bans compulsory labour and child labour and provides employees with a competitive salary and welfare system while creating an aspiring corporate culture and working atmosphere so that employees take pride in working for Ganfeng Lithium.

Resources Safety and health management The company continuously increases investment in technology development, research and innovation, Corporate governance attaches importance to the introduction and training of scientific research personnel and maintains innovation Product quality and safety vitality and ability to drive industrial upgrading. Responsible procurement

Waste and chemicals Emission The company respects and protects the human rights of every employee regardless management of age, gender, disability, race, ethnicity, origin, religion or economic status and Supplier Employment and labour management eliminates inequality. management Energy management Anti-corruption Environmental impact management Customer service We provide a diverse product portfolio that complies with sustainable development trends. Our products are widely used in new energy storage, urban clean transportation and other fields. Green products and recycling economy The company improves resource utilisation in all aspects of production and operation, strictly manages the use of hazardous chemicals, reduces waste emissions and rationally develops and utilises lithium ore resources Operation with integrity and metal recycling to minimise its impact on the environment. The company regards safe production as the

Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and patent management human rights Energy saving and emission reduction The company actively takes actions for energy saving and consumption reduction to address climate change. A Importance to stakeholders and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building Employee care Development a climate change risk management system and hiring third-party professional institutions to conduct greenhouse and training gas accounting in order to raise its specialty in responding to climate change.

Growth of the The company optimises the construction process during mining operations and actively Community investment company carries out reclamation and greening afterwards to maintain the stability of local ecosystem and protect biodiversity. Lowerer The company continuously improves corporate governance, strengthens anti- corruption construction and strives to establish an efficient and transparent Lowerer Higher governance system. Importance to Sustainable Development of Ganfeng Lithium The company has established a symbiotic and win-win relationship with partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Becoming a Pioneer in the Lithium Industry with Proactive Innovation Ganfeng Lithium Co.,Ltd. 40 2020 Sustainability Report 41

Ganfeng Lithium and East China University of Science and Technology deepened Ensuring R&D Capabilities cooperation on "Comprehensive Development of Salt Lake Brine Water Resources"

In 2020, Ganfeng Lithium deepened its cooperation with East China University of Science and Technology on the comprehensive and efficient utilization of salt lake brine resources. Relying on the co-built "Laboratory for Ganfeng Lithium has long-term plans for the Company's operation. We consolidate the foundation of technological Comprehensive Development of Salt Lake Brine Water Resources", the Company allowed experts, professors innovation and foster the core competitiveness of the Company by building a research and development platform, and outstanding student representatives to fully explore the actual situation of the Marina Salt Lake in Argentina, cultivating professional talents and organizing combined practices in production, education and research. In 2020, so that they tackled such technical difficulties as membrane separation, electrodialysis and new-generation the Company invested 28,900 Yuan in technology research and development. solvent extraction. During the cooperation project, the two sides optimized the process parameters, increased the comprehensive extraction rate according to the characteristics of the local brine mine and further clarified the Relying on a number of scientific research platforms such as the National process flow of lithium extraction from salt lake brine. Enterprise Technology Centre, the National and Local Joint Engineering Research Centre, National Postdoctoral Research Station, Academician Workstation, Jiangxi Provincial Lithium Battery New Materials Engineering Technology Research Centre, Jiangxi Provincial Key Laboratory, etc. the Company continues to invest funds to carry out technical research. In 2020, the Company had 2 municipal scientific research platforms approved:

Xinyu Key Laboratory of Energy Storage Battery and System Building R&D and Testing platforms Lithium Battery and Energy Storage System R&D and Industrial Design Center Professor Song Xingfu from East China University of Science and Technology and other specialists visit the Company for technical exchange and guidance

The Company has established a talent incentive system and long-term Ganfeng Lithium cooperated with CAS Ningbo Institute of development path, providing a training model that combines internal and external Materials Technology to research solid electrolyte materials training, and improved the technical level ascending channel represented by the internal professional title evaluation mechanism to stimulate the innovation In 2020, Ganfeng Lithium continued its cooperation with CAS Ningbo Institute of Materials Technology and of scientific researchers and engineering technicians. In 2020, the Company Engineering ("CAS Ningbo Institute of Materials Technology" in short) to research solid electrolyte materials formulated and issued the Management Regulations for Project Fund Application and solid-state batteries. We jointly built the Solid Electrolyte Materials Engineering Center and committed to and Intellectual Property Reward, which in the form of bonuses encourages front- developing next-generation solid-state lithium batteries. In 2020, our cooperation projects achieved remarkable line scientific research and technical personnel to translate their inspirations from results. daily work into innovative projects and intellectual property rights. The sulfide solid electrolyte powder material and diaphragm reached an ionic conductivity of Talent The Company actively listens to the rational, innovative, and ground-breaking 1.0×10-2S/cm at room temperature; suggestions of frontline personnel by organizing quarterly internal sharing and incentives A complete set of semi-automatic industrial lines that realize "automatic batching-ball exchange activities and issuing annual technological innovation awards and milling mixture-solvent drying-tunnel kiln calcination-block crushing-screening and magnetic outstanding contribution awards. In 2020, the Company issued a total of 922 separation-automatic packaging" was developed and built with a stable production capacity of rationalization proposal awards and 24 technological innovation awards, including 100 tons per year; 2 first-place prizes, 6 second-place prizes and 16 third-place prizes. A new-generation solid-state lithium battery was developed with specific energy exceeding 240-260Wh/kg. The industrialized demonstration production line was completed and put into production and passed various third-party safety tests.

The Company actively carries out industry-university-research cooperation. Using the "Internet +" expert service model, we have deepened cooperation with Ningbo Institute of Materials Technology of the Chinese Academy of Sciences (CAS), East China University of Science and Technology, Central South University, China University of Geosciences (Wuhan), China University Exchanges of Geosciences (Beijing), China University of Petroleum, Nanchang Hangkong and University, Nanchang University and other universities and research institutes. We carried out diversified cooperation projects through on-site expert services cooperation and video conferences. Becoming a Pioneer in the Lithium Industry with Proactive Innovation Ganfeng Lithium Co.,Ltd. 42 2020 Sustainability Report 43

Persisting in Technological Innovation Ganfeng Lithium collaborates with other outstanding companies in the industry to participate in the formulation of standards under the MIIT of the People's Republic of China. In 2020, the Company participated in the formulation of the national standard "Battery Grade Lithium Hydroxide Monohydrate" and the formulation of the industry standard "Method for Chemical Analysis of Secondary Battery Waste", helping the industry's technological progress with its own production Adhering to the concept of "dedicated, innovative and sustainable development", Ganfeng Lithium actively experience. undertakes major national and provincial scientific research projects and promotes the industrialization of project R&D and scientific research results. In 2020, the Company undertook 3 national-level projects, 5 provincial-level Ganfeng Lithium guarantees research projects and 3 municipal-level projects, and had 2 new municipal-level scientific research platforms approved. and development by actively applying for various intellectual property rights to Ganfeng Lithium's scientific research and technical transformation projects in 2020 translate its research and development capabilities into competitive advantages in the industry. In 2020, the patent of "a method for extracting lithium from Project spodumene to prepare lithium hydroxide monohydrate" won the Jiangxi Provincial We had a total of national utility model Patent Award, and the "Center for 14 69 patents invention patents patents Technology and Demonstration of Efficient and Clean Recycling of Engineering Technology Research on 83 authorized National-level Retired Ternary Lithium Battery Materials New Materials of Lithium Batteries in throughout the year projects Jiangxi Province" won the title of Jiangxi 2020 Green Manufacturing System Solution Supplier: System Provincial Key Industry Innovation Integration for Resourceful Utilization of End Products (recycling and Platform. We had a total of 83 patents utilization of retired power battery) authorized throughout the year, including Preparation of Type 523 Ternary Precursor Materials from Waste 14 national invention patents and 69 utility Ternary Lithium Ion Batteries model patents. Project The "Method for extracting lithium from spodumene to prepare lithium hydroxide monohydrate" patent won the Jiangxi Provincial Patent Award

Complete Set Preparation Technology and Industrialization of High Battery-grade lithium hydroxide monohydrate is Specific Energy Battery-Purpose Lithium Metal and Lithium-Based an important lithium raw material for preparing New Materials high-nickel ternary cathode materials. The quality of battery-grade lithium hydroxide monohydrate Efficient and Clean Recycling Technology and Industrialization of products directly affects the specific capacity, cycle Battery Materials for Electric Vehicles Provincial-level stability, consistency and other electrochemical projects Preparation and Engineering Demonstration of High-Performance properties of cathode material, which in turn affects Building Materials from Lithium Smelting Slag the performance of lithium power batteries and the performance of new energy vehicles driven 10,000-ton Lithium Salt Plant Reconstruction and Expansion Project by lithium batteries. In 2020, Ganfeng Lithium organized the R&D, production and quality New-Type Power Battery Project with Annual Output of 200 Million management teams of the Production Technology Watt-Hours Department to make technological breakthroughs. We proposed a fully enclosed fluidized bed drying process with circulated air to improve the core Project product indicators. In November, the process was awarded a patent for invention and also won the Jiangxi Provincial Patent Award. Preparation Technology and Industrial Application of Battery-Grade Anhydrous Lithium Hydroxide Municipal-level R&D and Industrial Application of High-Safety Small TWS Polymer The "Method for extracting projects lithium from spodumene to Batteries with Electromagnetic Shielding Effect prepare lithium hydroxide monohydrate" patent won the Technical Research and Industrial Application of Comprehensive Jiangxi Provincial Patent Award Utilization of Lithium Smelting Slag Resources Becoming a Pioneer in the Lithium Industry with Proactive Innovation Ganfeng Lithium Co.,Ltd. 44 2020 Sustainability Report 45

Optimizing Product Mix Zhejiang Funlithium realized the whole process of solid-state battery R&D, mass production, on-vehicle testing, etc.

Ganfeng Lithium's business operates through all important links in the value chain, including upstream lithium In 2020, Zhejiang Funlithium New Energy Technology Co., Ltd. ("Zhejiang Funlithium") and the CASC Shanghai resource development, midstream lithium salt deep processing and metal lithium smelting, downstream lithium battery Institute of Space Power-Sources signed a strategic cooperation agreement to deepen the scientific research of the manufacturing, and comprehensive recycling and utilization of waste batteries. The Company is actively carrying solid-state battery joint laboratory. The cooperation successfully upgraded the solid electrolyte powder pilot test line out the layout of the entire industry chain, exploring in the field of lithium ecology and is committed to becoming a and laboratory. A laboratory of more than 3,000 square meters was equipped with advanced production equipment to service provider with the most complete range of lithium products, the longest product processing chain and the most increase the annual production capacity of solid electrolyte to 100-ton class. In addition, the design freeze and review comprehensive process technology in the world. of a certain type of solid battery system was completed. After being manufactured and delivered to customers for on-vehicle testing, it was highly praised by customers for "high energy density and sound safety". In 2020, the Company empowered all vertical areas of the lithium ecological chain. We sought opportunities in market segments, supported talents and R&D, and incubated star products, helping the comprehensive and diverse development of the lithium compound industry. The Company's main products "Lithium Hydroxide Monohydrate" and "Lithium Belt" won the title of Jiangxi Famous Brand Product.

The Cauchari-Olaroz lithium salt lake project advances to create "salt lake-based" lithium carbonate products

In 2020, the Company's Cauchari-Olaroz project in Argentina was constructed as planned. The first phase of 40,000 tons of lithium carbonate will be put into production in the first half of 2022. By then, the Company's first overseas lithium salt production line will officially be put into operation, which marks the Company's breakthrough in overseas "salt lake-based" lithium carbonate products.

The Company combines its industrialization technology capabilities of "Lithium Extraction from Brine", "Lithium Extraction from Ore" and "Lithium Extraction from Recycling" to carry out diversified work on raw material extraction, recycling, product optimization, etc. We actively listen to customer feedback, regularly collect information and make return visits, quantify indicator requirements and improve product production. In 2020, the Company achieved technological breakthroughs in the R&D of a number of products.

Breakthroughs were made in self-preparation of lithium perchlorate, which Lithium perchlorate Zhejiang Funlithium and CASC Shanghai Institute of Space greatly reduced costs. Power-Sources signed a strategic cooperation agreement

Lithium sulfide The process and quality of lithium sulfide was improved.

Lithium extraction by resin Lithium selectively adsorbing resin was used to adsorb and recover lithium absorption from lithium in the defluoridation wastewater produced by current factories. fluoride mother liquor The lithium yield increased to over 99%, further reducing production costs.

Sec-butyllithium and methyl Breakthroughs were made in the technology of extracting sec-butyllithium lithium and methyl lithium in laboratories. Solid electrolyte powder pilot test line and laboratory upgrade

The development of lithium tert-amoxide in laboratories was realized.

Lithium tert-amoxide Industrialization was carried out in combination with market and customer feedback. Becoming a Pioneer in the Lithium Industry with Proactive Innovation Ganfeng Lithium Co.,Ltd. 46 2020 Sustainability Report 47

Creating Value with Service

Adhering to the concept of "lowest cost, highest efficiency, best quality and best service", Ganfeng Lithium responds Ganfeng Lithium develops secondary battery-grade to customer requirements in multiple fields such as electric vehicles, clean energy, consumer electronic equipment, lithium carbonate in response to customer needs manufacturing, chemicals and pharmaceuticals by regularly carrying out customer satisfaction surveys, making return visits on service quality and ensuring consistent product and service quality, in order to facilitate the sustainable development of the global lithium ecosystem. In 2020, affected by the COVID-19 epidemic and the cost and price of battery-grade lithium carbonate, Ganfeng Lithium carried out R&D and mass production of secondary battery- The Company strictly implemented the Quality Management System, Production Process Control Procedures Document, grade lithium carbonate (lithium-iron electrocarbon) based on customer feedback. Through a Product Delivery Process Document, Customer Feedback and Communication Process Document, Customer large amount of research work, we clarified requirements for materials, processing, cost, etc., Satisfaction Measurement Process Document and other internal management systems, in order to reduce the risk of and combined with the relevant technical standards for domestic production of lithium iron error and guarantee product quality. In 2020, combined with the requirements for the full promotion of construction of the phosphate materials, our technical team worked to complete product samples in the shortest IATF 16949 system, the Company issued a series of system documents to effectively improve customer service quality, amount of time. After listening to customer feedback on different batches of secondary such as the Customer Satisfaction Evaluation Form, Customer Return Visit Mechanism, Quality Management System battery-grade lithium carbonate, we improved product quality and completed the supply with and Process and Measures for the Administration of Customer Complaints. In 2020, the overall customer satisfaction quality and quantity as required, winning high recognition from customers. score was 95.12, an increase of 2.24% over last year; the Company received a total of 67 complaints which were promptly and properly handled; no product recall incidents due to health or safety hazards occurred. "Ganfeng Lithium Credit" became a bright nameplate in the industry Ganfeng Lithium's Customer Return Visit Mechanism

After-sales feedback From 2015 to 2020, the lithium industry surged with significant fluctuations in the prices of lithium products. In order to reduce supply chain risks and stabilize the market share and customers, the Company negotiated and signed long-term supply agreements with customers The marketing center, quality department, accounting with product prices adjusted quarterly. Now that the entire lithium industry cycle has passed, department and other departments coordinate to conduct "Ganfeng Lithium Credit" has gradually become a bright nameplate in the industry, laying a regular satisfaction surveys (including quality, service, delivery, solid foundation for the Company's sustainable development. etc.), and collect and count customer feedback.

In case of abnormal feedback and customer complaints, relevant departments are urged to verify and deal with them efficiently. Hang Seng Consistent improvement A-Share Corporation Sustainability The quality department and the marketing center take the lead Benchmark to collect customer feedback represented by the number of Index customer complaints.

Quality control and product complaints are incorporated into the Client Return performance appraisal of relevant departments. Visit Mechanism

Risk aversion

China ESG The quality department and the marketing center take the lead Leaders to identify risks and opportunities in the after-sales feedback Association and performance monitoring process.

For frequent or recurring customer complaints, relevant responsible departments are urged to set up special improvement teams to avoid similar risks from happening again. Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 48 2020 Sustainability Report 49

Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Materiality Analysis Response to UN SDGs

In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. Upon have actively participated in poverty alleviation, helped improve the lives of poor residents and sent gifts discussion and screening by the Sustainable Development Office, we arrived at 22 sustainable development issues for the year. to poor households on festive occasions.

The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and For more than 10 years, the company has assisted needy students in various forms such as complete disclosure of information related to operation and management. In 2019, we recovered a total of 12 copies of executive funding for study and music classroom building. The company cooperates with universities and questionnaire and 116 copies of stakeholder questionnaire, and collected opinions and suggestions from all stakeholders on the research institutes to carry out projects that train professionals in the lithium industry. company's sustainable development management which will serve as important basis and direction for the company's future. In opposition to gender discrimination, the company implements equal pay for equal work for Based on the evaluation of all social responsibility issues by stakeholders and executives, the company's 2019 materiality matrix men and women, protects the legal rights and benefits of female employees and increases the Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 on sustainable development was finalised and reported to the company's board of directors for approval. proportion of female executives gradually. 18

The production wastewater and domestic sewage generated by the company's operations are properly treated to reach standards and then discharged to municipal sewage pipe networks without polluting local Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 Materiality matrix of sustainable development rivers and lakes. 18 issues of Ganfeng Lithium in 2019 Materiality Analysis ResponseThe to company UN has replacedSDGs coal with steam and natural gas step by step and leveraged rooftop photovoltaic power generation and self-produced energy storage batteries to increase the use of clean energy. In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices Materiality Analysis Response to UNThe SDGscompany supports the development of strategic emerging industries that facilitate sustainable economic growth, bans analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices compulsory labour and child labour and provides employees with a competitive salary and welfare system while creating in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuouslyan aspiring corporate helps the culture families and of workingpoor employees atmosphere to get so outthat of employees poverty. Over take thepride years, in working we for Ganfeng Lithium. the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. Upon have actively participated in poverty alleviation, helped improve the lives of poor residents and sent gifts In 2019, we carried out different forms of interaction and communication with stakeholdersResources and completedSafety a benchmarking and health management TheGanfeng company continuouslyLithium's increasesPractices investment in technology development, research and innovation, discussion and screening by the Sustainable Development Office, we arrived at 22 sustainable development issues for the year. Corporate to poor households on festive occasions. analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices governance attaches importance to the introduction and training of scientific research personnel and maintains innovation in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing ProductRules quality on and safety For more thanvitality 10 years, and abilitythe company to drive industrialhas assisted upgrading. needy students in various forms such as The company used questionnaires to determine the extent and boundaries of disclosureResponsible of these procurement issues to ensure accurate and The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kongcomplete Stock Exchange, disclosure sorted of information out the sustainablerelated to operation development and management. issues related In to 2019, the industry we recovered and the a company.total of 12 Uponcopies of executive have actively participatedfunding for instudy poverty and alleviation,music classroom helped building.improve theThe lives company of poor cooperates residents andwith sentuniversities gifts and Waste and chemicals Emission The company respects and protects the human rights of every employee regardless management research institutes to carry out projects that train professionals in the lithium industry. discussion andquestionnaire screening by and the 116Sustainable copies of Development stakeholder questionnaire,Office, we arrived and at collected 22 sustainable opinions development and suggestions issues from for theall stakeholdersyear. on the to poor households on festive ofoccasions. age, gender, disability, race, ethnicity, origin, religion or economic status and company's sustainable development management which will serve as important basisSupplier and direction for the company's future. 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Our on sustainable development was finalised and reported to the company'smanagement board of directors for approval.Customer service research institutes to carry out projects that train professionals in the lithium industry. questionnaire and 116 copies of stakeholder questionnaire, and collected opinions and suggestions from all stakeholders on the products are widely used in new energy storage, urban clean transportation and other fields. company's sustainable development management which will serve as important basis and direction for the company'sGreen products future. and In opposition toThe gender production discrimination, wastewater the and company domestic implements sewage generated equal pay by for the equal company's work for operations are properly Based on the evaluation of all social responsibility issues by stakeholders and executives, the company's 2019 materialityrecycling economy matrix men and women,treated protects to reach theThe standardslegal company rights and andimproves then benefits discharged resource of female toutilisation municipal employees in allsewage aspects and pipeincreases of networksproduction the without and operation, polluting localstrictly manages the use on sustainable development was finalisedMateriality and reported matrixto the com ofpany's sustainable board of directors development for approval. proportion of femalerivers executivesand lakes.of gradually.hazardous chemicals, reduces waste emissions and rationally develops and utilises lithium ore resources issues of Ganfeng Lithium in 2019 Operation with integrity and metal recycling to minimise its impact on the environment. The company regards safe production as the The productionThe wastewater company andhas replaceddomestic coalsewage with steamgenerated and naturalby the company'sgas step by operationsstep and leveraged are properly rooftop Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and photovoltaic power generation and self-produced energy storage batteries to increase the use patent management treated to reach standards and then discharged to municipal sewage pipe networks without polluting local human rights of clean energy. Materiality matrix of sustainable development Energy saving and emission reduction rivers and lakes. The company actively takes actions for energy saving and consumption reduction to address climate change. A Importance to stakeholders issues of Ganfeng Lithium in 2019 and response to climate change The company supportsfew initiatives the development are energysaving of strategic targets emerging for factories industries and linking that facilitate them to sustainablethe performance economic of executives, growth, bans building Employee care The company has replaced coal with steam and natural gas step by step and leveraged rooftop Development compulsory laboura climate and child change labour risk andmanagement provides employeessystem and with hiring a competitivethird-party professional salary and welfareinstitutions system to conduct while creatinggreenhouse and training photovoltaic power generation and self-produced energy storage batteries to increase the use an aspiring corporategas accounting culture and in orderworking to raiseatmosphere its specialty so that in respondingemployees totake climate pride change.in working for Ganfeng Lithium. of clean energy. Growth of the Resources Safety and health The company optimises the construction process during mining operations and actively Community investment management company The company continuously increases investment in technology development, research and innovation, Corporate The company supports the development of strategic emerging industries that facilitate sustainable economic growth, bans attaches importancecarries to out the reclamation introduction and and greening training of afterwards scientific toresearch maintain personnel the stability and ofmaintains local ecosystem innovation governance compulsory labour and child labour and provides employees with a competitive salary and welfare system while creating Product quality and safety vitality and abilityand to protect drive industrial biodiversity. upgrading. Responsible procurement an aspiring corporate culture and working atmosphere so that employees take pride in working for Ganfeng Lithium. Lowerer Resources Safety andWaste health and chemicals Emission The company respectsThe company and protects continuously the human improves rights corporate of every governance, employee regardless strengthens anti- management management The company continuously increases investment in technology development, research and innovation, Corporate attaches importanceof age, to gender,the introductioncorruption disability, and construction race, training ethnicity, of andscienti origin,strivesfic research religionto establish personnelor economic an efficient and statusmaintains and and transparent innovation Lowerer Supplier governance Higher Product quality and safety eliminates inequality. Employment and labour management management vitality and ability to drive industrialgovernance upgrading. system. Responsible procurement Energy Importance to Sustainable Development of Ganfengmanagement LithiumAnti-corruption Environmental impact Waste and chemicals Emission The company respectsWe provide and aprotects diverse the product human portfolio rights of that every complies employee with regardless sustainable development trends. Our management Customermanagement service The company has established a symbiotic and win-win relationship with of age, gender,products disability, are race,widelypartners, ethnicity, used working in new origin, energywith religion upstream storage, or andeconomic urban downstream clean status transportation partners and in andthe industryother fields. chain Supplier Corporate governance Social responsibility EnvironmentGreen products responsibility and eliminates inequality. Employment and labour management management to push forward sustainable management. Energyrecycling economy management Anti-corruption The company improves resource utilisation in all aspects of production and operation, strictly manages the use Environmental impact management Customer service We provide a ofdiverse hazardous product chemicals, portfolio reducesthat complies waste withemissions sustainable and rationally development develops trends. and Ourutilises lithium ore resources Operation with integrity products are widelyand metalused inrecycling new energy to minimise storage, its urban impact clean on trathensportation environment. and Theother company fields. regards safe production as the Green products and Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and recycling economy patent management The company improves resource utilisation in all aspects of production and operation, strictly manages the use human rights Energy saving and emission reduction of hazardous chemicals,The company reduces actively waste takes emissions actions for and energy rationally saving develops and consumption and utilises reduction lithium oreto address resources climate change. A Importance to stakeholders and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building Operation with integrity and metal recycling to minimise its impact on the environment. The company regards safe production as the Employee care Development a climate change risk management system and hiring third-party professional institutions to conduct greenhouse Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and and training patent management gas accounting in order to raise its specialty in responding to climate change. human rights Energy saving and emission reduction Growth of the The company actively takes actions for energy saving and consumption reduction to address climate change. A Importance to stakeholders The company optimises the construction process during mining operations and actively Community investment and response to climate change company few initiatives are energysaving targets for factories and linking them to the performance of executives, building Employee care Development a climate changecarries risk managementout reclamation system and greeningand hiring afterwards third-party toprofessional maintain the institutions stability ofto localconduct ecosystem greenhouse and training gas accountingand in order protect to raisebiodiversity. its specialty in responding to climate change. Lowerer Growth of the The company Theoptimises company the continuouslyconstruction improves process corporateduring mining governance, operations strengthens and actively anti- Community investment company corruption construction and strives to establish an efficient and transparent Lowerer Higher carries out reclamation and greening afterwards to maintain the stability of local ecosystem and protect biodiversity.governance system.

Lowerer Importance to Sustainable Development of Ganfeng Lithium The company continuouslyThe company improves has established corporate governance,a symbiotic strengthens and win-win anti- relationship with corruption constructionpartners, workingand strives with to upstream establish and an downstream efficient andpartners transparent in the industry chain Lowerer Higher Corporate governance Social responsibility Environment responsibility governance system.to push forward sustainable management. Importance to Sustainable Development of Ganfeng Lithium The company has established a symbiotic and win-win relationship with partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 50 2020 Sustainability Report 51

Improving Environmental Management Ganfeng Lithium encourages plants to formulate emission reduction and efficiency enhancement goals after statistical analysis of exhaust gas, water use, energy consumption and carbon emissions during the production process based on historical data on operation and production capacity forecasts. Taking the 10,000-ton lithium salt plant as an example, the plant formulated environmental goals that should be achieved by 2025 based on 2019, and disclosed the status of Ganfeng Lithium strictly abides by relevant environmental protection laws and regulations such as the Environmental achievement in 2020 as follows: Protection Law of the People's Republic of China, Environmental Impact Assessment Law of the People's Republic of China and Law of the People's Republic of China on Water and Soil Protection. The Company combines with its own operational characteristics and has formulated systems such as the Environmental Protection Regulations, Environmental goals set and achievements of this year Regulations on the Management of Environmental Protection Responsibility Systems and Environmental Protection Archives Management System. Ganfeng Lithium has clarified the operational standards, emission reduction targets and environmental protection responsibilities of all levels of the Company, forming a complete environmental management 2019 2020 2025 system.

In 2020, the Company adjusted the members of the Management Committee for Safety, Environmental Protection and Exhaust gas Fire Protection, designating the Chairman as the director, and set up the office for safety, environmental protection and fire protection with the CEO as the director. The Committee works together with the Company's Department of Safety NOX emissions per ton of LCE 3.48kg 2.39kg To reduce by 5% and Environmental Protection and assesses the safety and environmental protection management team every quarter for rewards or penalties. SO2 emissions per ton of LCE 0.83kg 0.46kg To reduce by 1%

Emission of particles per ton of 0.52kg 0.39kg To reduce by 5% LCE No environmental Environmental events and million Yuan was Water use complaints or 83.72 investment in environmental invested in environmental environmental penalties protection in 2020 protection in 2020 Water consumption per ton of occurred in 2020 38.3t 29.56t To reduce by 20% LCE

Water circulation rate 72% 81% To increase by 20%

Energy consumption and carbon emissions Ganfeng Lithium attaches great importance to the cultivation of environmental protection awareness of employees by formulating the Management Regulations for Environmental Protection Training and Education to standardize Carbon dioxide emissions per ton Pending calculation by a environmental protection training courses for different employees and require employees to master the control 9.58t To reduce by 10% of products third-party agency parameters and operating procedures of environmental protection equipment. In addition, the Company participated in the formulation of the national Regulations for Green Factory Evaluation in the Lithium Salt Processing Industry to Coal consumption per ton of promote the implementation of green factory evaluation in the lithium processing industry as soon as possible, and 3.09 1.19 To reduce by 6% products contribute to the improvement of the industry's environmental management level. Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 52 2020 Sustainability Report 53

In 2020, the Company set a company-wide sustainable development goal based on the operating experience of the Striving for Lower Emissions 10,000-ton lithium salt plant.

With 2019 as the base year, the 2025 sustainable development goals are as follows: In order to effectively control and minimize pollutant discharge in the operation process, Ganfeng Lithium has formulated the Management Regulations for Environmental Protection in the Production Process and Environmental Operation Management Regulations, which require the control of pollutant emissions. We control and test waste water, exhaust gas, noise and solid waste discharges to ensure that the "three wastes" are discharged in compliance with laws and regulations. By 2025

To reduce exhaust gas emissions per ton of products by 5% Waste

Based on laws and regulations such as the Law of the People's Republic of China on Environmental Pollution To reduce water consumption emissions per ton of products by 20% by Solid Wastes, Ganfeng Lithium strictly regulates the process of waste collection, storage and disposal, and implements internal systems such as the Management Measures for the Transfer of Hazardous Wastes for classification management and compliance treatment. To increase water circulation rate per ton of products by 20%

Main waste types and treatment methods of Ganfeng Lithium To reduce carbon emissions per ton of products by 10%

Waste type Waste breakdown Disposal method

To reduce coal consumption per ton of products by 6% Wastes included in the National Hazardous Waste Metal parts, waste paper List shall be transferred to hazardous waste boxes, waste wooden boxes, warehouses in time, and then handed over to To increase the proportion of sustainable electricity to 25% Hazardous waste glass bottles and cans, waste a qualified unit for disposal or recycling in strict plastics, waste paper, waste accordance with national requirements, and the packaging bags, etc. "five-part" bill and other documents in the handover process shall be archived and managed. Metal parts, waste paper The Company's Cauchari-Olaroz project in Argentina attaches great importance to environmental management boxes, waste wooden boxes, Recyclable storage points shall be set up and clearly to ensure full compliance with local laws and regulations. In 2020, the project continued to improve the level of Recyclable glass bottles and cans, waste marked, and the recyclable waste shall be promptly environmental management and use renewable energy more effectively to reduce its overall carbon footprint. plastics, waste paper, waste handed over to relevant agencies for recycling. During the operation of Cauchari-Olaroz, the direct use of solar energy to evaporate brine greatly reduced the General packaging bags, etc. overall carbon footprint of the product. The use of renewable energy was expanded in the operation phase to waste Non-recyclable waste storage points shall be reduce dependence on fossil fuels. Construction waste, food waste Non- set up. Non-recyclable waste shall be placed in from canteens, and domestic recyclable designated trash bins and processed by municipal waste administration.

Argentina's Mariana Salt Lake Lithium Extraction Project uses sustainable electricity entirely Comparison of waste emissions per ton of Ganfeng Lithium products

In order to reduce the carbon footprint and provide sustainable carbon-free energy, Ganfeng Lithium plans to build a 120 MW photovoltaic power generation + energy storage project as an energy supply Waste discharge per unit product 2020 2019 Lower in 2020 than in 2019 solution. This is one of the few corporate projects in the plateau region of Salta Province that can provide 100% continuous energy supply. Through solar power generation, the emission of greenhouse Hazardous waste (tons/10,000 tons gases into the atmosphere can be avoided. In this case, 157,000 tons of carbon dioxide can be 27.17 75.32 64 of LCE) ％ reduced each year, thereby realizing the circular mode of lithium mining, product manufacturing and product use, conducive to environmental protection. Non-hazardous waste (tons/10,000 3,983 9,830 59 tons of LCE) ％ Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 54 2020 Sustainability Report 55

Ganfeng Lithium invited external experts to explain the new requirements of the Waste management in the Cauchari-Olaroz project in Argentina new solid waste law on the solid waste management of industrial enterprises

In June 2020, in order to strengthen employees' understanding of solid waste treatment and disposal, and The Cauchari-Olaroz project was designed with a waste management solution, which mainly includes enhance their knowledge and awareness of solid waste management, Ganfeng Lithium invited Director Zhang Shijin of the Jiangxi Solid Waste Management Center to explain the new regulatory requirements in the new solid A waste management plan to prevent any negative impact on the project; waste law that industrial enterprises should face. Zhang also gave a detailed explanation of the standardized management index system of hazardous waste, the key points of on-site inspection on hazardous waste and knowledge on data preparation, which effectively improved employees' knowledge reserve and practical skills for solid waste treatment. Waste management procedures to classify and measure waste;

Disposal of waste monthly, including separation from the source, sorting, recycling, composting, etc.

In 2020, the project used all useful organic waste for composting. On the one hand, it can reduce the final disposal of waste. On the other hand, it can increase the amount of natural fertilizer and increase employees' awareness of the importance of waste management practices. Some recyclable waste is sent to recycling companies, which after being recycled will benefit schools, municipalities and communities. As the project is in the construction phase, a large amount of construction waste is generated. The Company stores the waste in specially designated facilities until they are disposed of.

The project has classified all wastes and used different treatment methods to effectively treat or reuse all wastes.

External experts explaining on site Waste Water

Ganfeng Lithium's 10,000-ton lithium salt plant builds a silicon-calcium slag storage system to reduce dust pollution The Company strictly complies with the laws and regulations including the Water Pollution Prevention and Control Law of the People's Republic of China, Inorganic Chemical Industry Pollutant Discharge Standard, Battery Industry Pollutant Discharge Standard and Pollution Permit Management Measures (Trial) to control the wastewater generated from Relying on the existing project, Ganfeng Lithium's 10,000-ton lithium salt plant invested 26 million Yuan to build production and laboratory processes, ensuring that it is discharged after meeting the standards. The Company requires a silicon-calcium slag storage warehouse on the south of the plant. The warehouse covers an area of 49,163 all subsidiaries to conduct analysis and testing in accordance with the relevant requirements of pollution discharge square meters and a building area of 29,160 square meters. After completion, the warehouse will have a total permits, install online monitoring equipment at the main wastewater discharge outlets and keep records. Domestic storage capacity of 20,400 tons of silica-calcium powder and an annual turnover of 420,000 tons of silica-calcium sewage is treated and discharged into the municipal sewage pipe network after it reaches the standard. In 2020, powder. The transportation of silica-calcium slag through the belt conveyor system has effectively reduced the Ganfeng Lithium's 10,000-ton lithium salt plant implemented "zero" discharge of wastewater and set up a working group dust pollution on the site. to substantially improve the Company's effectiveness in wastewater reduction.

Efficient treatment of wastewater in the Cauchari-Olaroz project inArgentina

The Cauchari-Olaroz project team has realized that the water used by the project is crucial in the process of project implementation. Therefore, Minera Exar is committed to responsible and transparent water management. From a long-term perspective, our water resources management plan includes

Collecting extensive data on underground water Real-time monitoring of water consumption resources; and the amount of sewage generated;

Testing surface water and conducting Implementing a link management plan to hydrogeological research to develop a modeling reduce water consumption and improve system; the efficiency of wastewater treatment. Newly-built silica-calcium slag storage system Silicon calcium slag belt conveyor system Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 56 2020 Sustainability Report 57

Exhaust Gas Ganfeng Lithium's 10,000-ton lithium salt plant Phase III acidification kiln hot-blast stove coal-to-gas conversation

In 2020, the third-phase acidification kiln hot-blast furnace fuel of the 10,000-ton lithium salt plant was changed The exhaust gas produced by the Company's operations is mainly boiler exhaust gas, drying exhaust gas and exhaust from coal to natural gas, which addressed the safety and environmental protection risks generated during the gas gas produced by the electrolysis process. In accordance with laws and regulations such as the Air Pollution Prevention generation process. The environmental protection data before and after conversion was clearly compared to show an and Control Law of the People's Republic of China, Comprehensive Emission Standard of Air Pollutants and Emission effective reduction in emissions of major air pollutants such as sulfur dioxide and nitrogen oxides. Standard of Air Pollutants from Industrial Furnaces, the Company installs online monitoring equipment at the main discharge outlets to monitor exhaust emissions to ensure all exhaust gas meets the emission standards. In addition, technical improvements and production equipment upgrades are carried out to reduce the concentration and total Before transformation After transformation amount of exhaust gas emissions. In 2020, the Company invested a total of 33.86 million Yuan in process transformation, reducing emissions of nitrogen oxide, soot and sulfur dioxide by 91.65 tons, 24.31 tons and 30.81 tons, respectively.

3 SO2 concentration About 500 mg/m Below the detection limit Comparison of exhaust gas emissions per ton of Ganfeng Lithium products

3 3 NOX concentration 300 mg/m About 20 mg/m 2020 2019 Decrease compared to 2019

Particulate matter (ton) 6.67 11.16 40%

Sulfur dioxide (ton) 9.27 14.98 38%

Nitrogen oxides (ton) 30.36 47.32 36%

Ganfeng Lithium's 10,000-ton lithium salt Phase I rotary kiln tail flue gas Natural gas pressure regulating station for Renovation of natural gas pipeline in acidification kiln renovation acidification kiln denitrification technology transformation

Emissions management of the Cauchari-Olaroz project In order to implement the requirements of the Comprehensive Emission Standard for Air Pollution and achieve the compliance emission Controlling emissions is of utmost importance to the health and safety of our employees. In addition, we of nitrogen oxides, Ganfeng Lithium has recognize that customers and investors increasingly expect us to minimize emissions during the manufacturing renovated the denitrification of the flue gas from process. Minera Exar regularly tracks greenhouse gas, air quality and noise emissions at all stages of the the Phase I rotary kiln of the 10,000-ton lithium project, and has set five fixed detection points to obtain on-site air pollutant indicators in a timely manner. salt plant. In October 2020, the construction of the project was completed. The concentration of NOX from the phase I rotary kiln tail dropped significantly. Before the technical renovation, the NOX concentration was basically around Noise 500 mg/Nm3, and after the technical renovation, it was about 200 mg/Nm3, so that the estimated

NOX reduction was 37.88 t/a. The Company strictly controls the noise pollution in the production area by clarifying the noise control standards in the plant, the boundary area of the plant and at the nighttime and regularly conducting noise monitoring. When the monitoring result exceeds the response standard, we conduct targeted emergency management according to the exceedance, such as improving the mechanical transmission part of the production equipment or air compressors, Rotary kiln flue gas denitrification equipment and in severe cases, stopping production for improvement immediately. Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 58 2020 Sustainability Report 59

Optimizing Use of Resources Ganfeng Lithium's 10,000-ton lithium salt plant switches to new energy forklifts

The Company pays attention to improving energy efficiency in the production process by reducing resource waste and rationally using by-products. At the same time, the Company promotes green office measures to advance the construction of a resource-saving enterprise. Ganfeng Lithium's 10,000-ton lithium salt plant actively responds to the government's call for vigorously promoting the use of clean energy, Energy-Saving Technical Improvement energy savings and emission reduction by replacing diesel-fueled forklifts with electric ones for all forklifts to be purchased for added production and ordinary tires of The Company has formulated relevant systems such as the Energy Management System, Energy Consumption Quota some forklifts with environmentally friendly Management System, Measures for Evaluation and Assessment of Energy-Saving Targets Oriented Responsibility and ones. In 2020, a total of 5 electric forklifts Energy-Saving Reward and Punishment System to link target achievement and environmental performance to executive were put into use in various warehouses. In performance and urge energy conservation and emission reduction responsibilities to be implemented. The Company the future, diesel-fueled forklifts other than analyzes possible links for energy efficiency improvement in the operation process, and continuously improves energy those for engineering construction will be efficiency through waste heat utilization and equipment update and optimization. gradually replaced with electric forklifts, and all electric forklift tires will be replaced with Comparison of energy consumption per ton of Ganfeng Lithium products environmentally friendly tires.

Comprehensive energy consumption per unit product 2020 2019 Decrease compared to 2019 The Company's electric forklift

-Lithium chemical (ton of standard coal/ton of LCE) 2.22 2.28 3%

-Lithium batteries (ton of standard coal/MWh) 9.91 10.56 6%

Energy-saving transformation of dehumidifiers in the battery cell Ganfeng Lithium 10,000-ton lithium salt plant's waste heat utilization transformation workshop of Xinyu Ganfeng Electronics Co., Ltd.

Ganfeng Lithium's 10,000-ton lithium salt plant implemented waste heat transformation and utilization of the Xinyu Ganfeng Electronics transformed three low-temperature dehumidifiers from fixed frequency to variable high-temperature flue gas generated from the rotary kiln head in the first and second phases. A heat exchanger frequency in the battery cell workshop of the second manufacturing division. Under the premise of not affecting was added to the lithium hydroxide workshop to exchange heat for concentrated liquor and purged liquor, the temperature, humidity and cleanliness of the workshop, the frequency was reduced to reduce the air supply, which prevented dissipation of heat causing a waste of energy. The plant separately added a drying system cooling capacity and heating power consumption. In addition, connecting the original two units in parallel to and a waste heat boiler to the existing kiln head to collect the heat in the flue gas to produce steam or dry raw stand by each other made it easy to adjust the operating status of the chiller according to the season and materials. weather, thereby reducing energy consumption. After the transformation, it is estimated that the annual electricity consumption can be reduced by about 920,000 kWh based on the actual operation effect. The annual drying capacity of spodumene in the drying kiln in the first phase is 158,400 tons, and the recovered heat is about 2,520 tons of standard coal; Ganfeng Lithium's energy-saving technical transformation of the The second phase of the project butyllithium workshop in the lithium chemical sector can produce 15,000 tons of steam per year; The butyllithium workshop of the lithium chemical sector of Ganfeng Lithium utilized the old 3 kW canned motor pump that had been dismantled and discarded to replace the 37 kW fire pump, and boosted the pressure of The technical transformation of the the butyllithium filter cleaning to save 1,530 kWh of electricity per month. In addition, the workshop recycled the lithium hydroxide workshop can original butyllithium cleaning solution after compliance treatment to reduce the amount of cleaning waste liquid save 0.9 tons of steam per hour for treatment, which can save 75,000 liters of solvent and 15 tons of steam on average each year. and reduce the amount of steam Retrofitting of rotary kiln's waste Retrofitting of rotary kiln heat boiler head's drying system used by 6,300 tons per year. Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 60 2020 Sustainability Report 61

Use of By-products Ganfeng Lithium's water recycling in its 10,000-ton lithium salt plant

The productive waste (smelting by-products) produced by the Company in the ore refining business is stored in a special From February to April 2020, Ganfeng Lithium recycled the condensed water and sewage from its 10,000-ton storage point, and sold by the marketing department as production materials for cement and glass manufacturing lithium salt plant. Heat exchange was performed between the high-level secondary condensate water (75-85°C) industries. For the chlorine tail gas produced by the electrolytic lithium process, the Company actively carries out gas produced in the workshop and the LiOH solution (-5-10°C) produced by cooling to supplement tap water supply capture and reuse to prepare disinfection solutions. In 2020, the Company used a total of 79.2 tons of solid by-products. to the cooling tower, and the sewage recovered from the cooling tower through pipelines was used for sprinkling and workshop floor washing to effectively improve the utilization rate of water resources.

After the transformation, the annual water consumption can be reduced by 186,600 cubic meters. Ganfeng Lithium recycled tail gas from electrolysis for metal lithium preparation

During the electrolysis process of metal lithium preparation in Ganfeng Lithium, chlorine-containing tail gas by- products are produced on the anode of the electrolytic cell, which causes serious air pollution if they are not absorbed. The Company collects chlorine-containing tail gas through a gas hood and guides it to the absorption Ningdu Ganfeng's steam condensate reuse treatment device by a fan. Sodium hydroxide is used as the absorption liquid and two sets of turbulent ball towers are used for absorption. The entire absorption process line prevents chlorine leakage through failure In order to reduce the consumption of tap water and avoid the waste of primary steam condensate, Ningdu interlocking, chlorine leakage alarm, negative pressure alarm, etc. The chlorine absorption rate reaches 99.9%, Ganfeng recovers primary steam condensate from the circulating fluidized bed boiler as the main source of boiler and the generated sodium hypochlorite solution is absorbed and mainly used for multiple purposes such as feed water. Since the project was implemented in April 2020, a total of 96,531 tons of steam condensate have water purification, disinfection, pulp bleaching, etc. been reused, accounting for 77.5% of the total boiler water supply.

Use of Water Resources At the same time, the lithium carbonate workshop supplements the circulating water station and is responsible for the operation of the circulating water system of the whole plant. The workshop utilizes the surplus cooling capacity of the circulating water cooling tower to recover the secondary steam condensate as supplementary water for the circulating water system to reduce tap water consumption. In 2020, 180,000 tons of fresh water The Company advocates the recycling of waste water. From the waste water generated during the production were saved through secondary steam condensate reuse. process, condensate water is used in cooling water recycling, and the cooling water required for bag dust removal and desulfurization systems is precipitated, filtered and recycled to improve water resource utilization. In 2020, the Company strengthened the management and control of water testing points in production workshops, sewage stations, cleaning and sanitation stations, office buildings and canteens. Focusing on improving water metering and monitoring, we added 30 water meters and updated 12 to increase the water metering and testing rate to 100%. Steam condensate reuse in Fengxin Ganfeng

From March to August 2020, Fengxin Ganfeng set up a condensate collection tank in the plant area to address condensate discharge after use of external steam. At the same time, a condensate cooling device was installed to input the collected water to the cooling tower and the absorption section for use, reducing water discharge and Ganfeng Lithium's water Tap water consumption in 2020 was conservation management tap water consumption. According to calculations, the water saved was about 30,000 tons. 1.048 million tons less than in 2019 performance

Comparison of water consumption per ton of Ganfeng Lithium products Cauchari-Olaroz project's water resources management

Minera Exar recognizes that water is not only critical to the operation of the project, but also a key issue for local Water consumption per unit 2020 2019 Decrease compared to 2019 operators. We are committed to responsible water management and ensure full compliance with local water product laws and regulations. In order to reduce competition with local communities for water resources, the project only purchases treated deep water which is alkaline and not suitable for humans or animals to drink. As our water -Lithium chemical (ton/ton of 38.62 40.72 5% use exceeds the standards of local government, we use advanced hydrological models to ensure that there is no LCE) conflict with the water use of local communities, so as to maintain trust among communities and their sustainable development. -Lithium batteries (ton/MWh) 19.9 20.44 3% Contributing to Environmental Protection with Low-Carbon Operations Ganfeng Lithium Co.,Ltd. 62 2020 Sustainability Report 63

Green Office Conserving the Ecological Environment

The Company advocates green and low-carbon office work and encourages a variety of green office approaches. In Ganfeng Lithium pays high attention to the construction of ecological civilization. In strict accordance with the December 2020, the Company launched an ERP system upgrade. While promoting unified and integrated information Environmental Management System for Construction Projects and Environmental Factors Identification Form, we management and control, we continuously reduced the paper needed for office work and the energy consumption for investigate such key operations as mining, smelting and processing, restore the ecological environment to minimize the communication, thereby effectively reducing resource consumption. impact on the environment and ecosystem, and explore sustainable mining methods.

Environment Reclamation

Ganfeng Lithium launched the 2020 "World Environment Day Publicity Week" In accordance with the "Three Simultaneities" Management Regulations for Environmental Protection of Construction Projects, the Company strictly implements environmental impact assessment before starting construction, and ensures that the environmental protection facilities and the main body of the construction project are designed, constructed and From June 5 to 12, 2020, the Company took the 2020 World Environment Day as an opportunity to launch put into use at the same time, thereby reducing the impact on the environment and ecosystem. "World Environment Day Publicity Week" with the theme of "I'm an Actor to Beautify Ganfeng Lithium". The Company established the "World Environment Day Publicity Week" leading group and organized a variety of After the development of mineral resources, the Company promptly conducts reclamation management of the mining activities: area. In accordance with the Law of the People's Republic of China on Soil and Water Conservation, Service Guide for the Development and Utilization of Mineral Resources (published by the Ministry of Natural Resources of the People's Republic of China) and Environmental Protection and Recovery Management Plan for Mines, we plant trees and grass Online quizzes with prizes on environmental protection knowledge; to green mines, restore the ecological environment of the mining area as much as possible, and prevent soil erosion.

Special lectures and environmental diagnosis by environmental protection experts invited to Sustainable Mining the Company;

Team activities with the theme of "How to implement on-site 5s management" organized in Ganfeng Lithium explores sustainable lithium resource mining methods. We use renewable energy such as solar each subsidiary/plant; energy, implement sustainable mining of lithium salt lakes, and avoid fossil fuel consumption and greenhouse gas emissions caused by ore extraction and mining. As of the end of 2020, the Cauchari-Olaroz and Mariana lithium salt lake projects led by Ganfeng Lithium in Argentina had incorporated the concept of sustainable mining, striving to Hidden danger investigation around pollutant discharge standards; build the world's most environmentally friendly lithium projects.

The Cauchari-Olaroz project in Argentina These activities enhanced the Company's environmental management capabilities and consolidated its environmental awareness. The Cauchari-Olaroz project site is rich in sunshine and is adjacent to the CAUCHARI 300MW smart photovoltaic power station, the largest such in South America. Compared with thermal power generation, annual carbon emissions have been reduced by about 598,000 tons. After the project is completed, it will use the electricity generated by solar energy and evaporation by sunlight to mine the salt lake. At the same time, the project will implement water recycling to avoid water waste, and adopt a three-effect evaporation process to reduce water consumption and increase the output per unit of water use. The entire project uses renewable resources as much as possible in the process of mining, processing and transportation.

In addition, to promote local economic development, the project will create at least 260 permanent jobs during the 40- year operation period. We will organize activities in local communities, work with partners of different ethnicities and beliefs, "World Environment Day Publicity Week" activities on site and invite biological and environmental scientists on a regular basis to offer environmental training, so as to create a balance between society, economy and Landscape of the Cauchari-Olaroz project site and the environment. surrounding areas Ensuring Safety and Ganfeng Lithium Co.,Ltd. 64 Employee Health 2020 Sustainability Report 65

Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Materiality Analysis Response to UN SDGs

In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. Upon have actively participated in poverty alleviation, helped improve the lives of poor residents and sent gifts discussion and screening by the Sustainable Development Office, we arrived at 22 sustainable development issues for the year. to poor households on festive occasions.

The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and For more than 10 years, the company has assisted needy students in various forms such as complete disclosure of information related to operation and management. In 2019, we recovered a total of 12 copies of executive funding for study and music classroom building. The company cooperates with universities and questionnaire and 116 copies of stakeholder questionnaire, and collected opinions and suggestions from all stakeholders on the research institutes to carry out projects that train professionals in the lithium industry. company's sustainable development management which will serve as important basis and direction for the company's future. In opposition to gender discrimination, the company implements equal pay for equal work for Based on the evaluation of all social responsibility issues by stakeholders and executives, the company's 2019 materiality matrix men and women, protects the legal rights and benefits of female employees and increases the on sustainable development was finalised and reported to the company's board of directors for approval. proportion of female executives gradually.

The production wastewater and domestic sewage generated by the company's operations are properly treated to reach standards and then discharged to municipal sewage pipe networks without polluting local Materiality matrix of sustainable development rivers and lakes. issues of Ganfeng Lithium in 2019 The company has replaced coal with steam and natural gas step by step and leveraged rooftop photovoltaic power generation and self-produced energy storage batteries to increase the use of clean energy.

The company supports the development of strategic emerging industries that facilitate sustainable economic growth, bans compulsory labour and child labour and provides employees with a competitive salary and welfare system while creating an aspiring corporate culture and working atmosphere so that employees take pride in working for Ganfeng Lithium.

Resources Safety and health management The company continuously increases investment in technology development, research and innovation, Corporate governance attaches importance to the introduction and training of scientific research personnel and maintains innovation Product quality and safety vitality and ability to drive industrial upgrading. Responsible procurement

Waste and chemicals Emission The company respects and protects the human rights of every employee regardless management of age, gender, disability, race, ethnicity, origin, religion or economic status and Supplier Employment and labour management eliminates inequality. management Energy management Anti-corruption Environmental impact management Customer service We provide a diverse product portfolio that complies with sustainable development trends. Our products are widely used in new energy storage, urban clean transportation and other fields. Green products and recycling economy The company improves resource utilisation in all aspects of production and operation, strictly manages the use of hazardous chemicals, reduces waste emissions and rationally develops and utilises lithium ore resources Operation with integrity and metal recycling to minimise its impact on the environment. The company regards safe production as the

Technology innovation and most important responsibility and strives to create a safe and healthy working environment for its employees. Democracy and patent management human rights Energy saving and emission reduction The company actively takes actions for energy saving and consumption reduction to address climate change. A Importance to stakeholders and response to climate change few initiatives are energysaving targets for factories and linking them to the performance of executives, building Employee care Development a climate change risk management system and hiring third-party professional institutions to conduct greenhouse and training gas accounting in order to raise its specialty in responding to climate change.

Growth of the The company optimises the construction process during mining operations and actively Community investment company carries out reclamation and greening afterwards to maintain the stability of local ecosystem and protect biodiversity. Lowerer The company continuously improves corporate governance, strengthens anti- corruption construction and strives to establish an efficient and transparent Lowerer Higher governance system. Importance to Sustainable Development of Ganfeng Lithium The company has established a symbiotic and win-win relationship with partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Ensuring Safety and Ganfeng Lithium Co.,Ltd. 66 Employee Health 2020 Sustainability Report 67

Improving the Safety System Safety Risk Control

Ganfeng Lithium abides strictly by the laws and regulations such as the Law of the People's Republic of China on Work In order to strengthen the control of project construction from the source, we have actively implemented the "three Safety and Work Safety Management Regulations of Jiangxi Province and has formulated and implemented internal simultaneities" safety principle for construction projects. In the daily production and operation process, we insist on system policies such as the Work Safety Management System and Regulations on Management of the Responsibility carrying out hazard identification training, requiring all units to actively identify and evaluate their own hazards, formulate System for Work Safety. hierarchical risk management and control measures, and establish specific management and control plans for dynamic We have established a Management Committee for Safety, Environmental Protection and Fire Protection within the management of identified major environmental risks. Company to comprehensively manage safety work. A safety and environmental protection office has been set up Adhering to the work policy of "prevention first, combining prevention and elimination", we regularly carry out fire safety under the Committee to organize, guide, coordinate and supervise the daily work of various subsidiaries, factories and inspections and fire hazard inspections to discover and correct hidden hazards in a timely manner, prevent fires and departments. In 2020, we comprehensively organized the responsibilities of safety production management at all levels, make the Company's fire protection work scientific, standardized and institutionalized. strictly implemented the "one post and two responsibilities" system, and continued to improve the safety production responsibility assessment system, clarify entities responsible for safety, and fulfill the responsibility for safety production We incorporate contractor risk management into the overall safety risk assessment of the enterprise, and strictly at every link, every post and by every employee. implement the management and supervision of contractors' safety production. We sign the Construction Safety Agreement for External Construction Units with contractors, and issue the Notification on the Safety Environment of In order to ensure that the safety management system is always in line with international first-class standards, Ganfeng External Construction Units and Detailed Rules for the Safety Assessment of External Construction Units to contractors Lithium actively participates in the certification of the safety management system. As of the end of 2020, Ganfeng Lithium to achieve full coverage of the Company's safety production management policies and systems. Our daily on-site safety and 7 subsidiaries had obtained ISO45001 occupational health management system certification; Ganfeng Lithium inspections include supervision and inspection of the contractor's construction safety to promptly discover potential and 7 other subsidiaries have also obtained QHSAS18001 certification. The internationalization and standardization of safety hazards and require rectification, keeping strict control over contractors’ safety risks. Ganfeng Lithium's safety management system was effectively guaranteed.

Occupational health and safety management of the Cauchari-Olaroz Project in Argentina Hidden Danger Investigation and Management

Health and safety are our core principles. The Company strives to prevent and reduce occupational health and safety risks for employees and contractors. Minera Exar has established a Health, Safety, Environment and Community Committee (HSEC), which is responsible for assisting the Board of Directors to supervise and review the Company's Ganfeng Lithium has set up 5S specialists in each production workshop health and safety policies to ensure that they are consistent with local policies. The Code of Conduct formulated to carry out comprehensive and detailed dynamic safety inspections by Minera Exar states our commitment to health and safety. Our employees have established a Health and Safety and hidden danger investigations, and regularly accept inspections by Committee, which meets regularly every month to address and improve the health and safety of employees. external supervisory authorities. In 2020, Ganfeng Lithium received 179 external inspections, in which 3,642 risks were screened out and 3,603 rectifications were finished with a rectification rate of 98.93%. The Work Safety Practice Company has fully implemented the work system of "one map, one sign In 2020 and three lists", which has effectively strengthened safety management a rectification rate of measures and comprehensively improved the safety conditions of 98.93% production units. Ganfeng Lithium actively identifies various safety risks, constantly carries out comprehensive and detailed investigations of potential During the reporting period, In 2020, we further identified high-risk links in production operations safety hazards, and devises corresponding safety emergency plans Ganfeng Lithium invested RMB and fully standardized the management of hazardous operations. We to create an atmosphere of safety production. We continuously 19.47 million in work safety implemented ticket management for dangerous operations such as improve employees' safety awareness and safety skills and exert and achieved "zero" work operation with fire, operation in confined space, hoisting, etc., and comprehensive control of a series of processes such as internal safety accidents. established an approval system. In 2020, the Company issued a total of control, operation and emergency response. During the reporting 23,823 job tickets. period, Ganfeng Lithium invested RMB 19.47 million in work safety and achieved "zero" work safety accidents. Ensuring Safety and Ganfeng Lithium Co.,Ltd. 68 Employee Health 2020 Sustainability Report 69

Safety Emergency Management Safety Culture Construction

In order to respond to various emergencies in a timely manner, Ganfeng Lithium continuously improves its emergency Ganfeng Lithium actively carries out safety production publicity and education. Through various forms of safety culture management work. We have established and improved the emergency management system. The Company compiled activities and safety training, we have further cultivated employees' safety awareness and technical qualities for safety the Work Safety Emergency Plan and reported it to the Emergency Management Bureau, and formulated the Emergency production, instilled them with safety concepts, and improved the Company's safety culture construction. Plan Management Process Document during the year, which comprehensively improved our ability to prevent and respond to safety accidents. In 2020, the Company carried out a total of 71 emergency response drills.

In 2020, relying on Ganfeng Lithium Business School, we carried out business training and on-job training activities. During the reporting period, 66,737 people participated in safety training. In addition, we insist During the reporting period, on holding a series of Safety Production Month activities every year. In Emergency Rescue Workflow June 2020, we carried out safety production accident warning education, 66,737 people participated safety knowledge Q&A, safety knowledge lectures and other activities on in safety training the theme of "eliminating accidents and strengthening safety lines", which

communication created an atmosphere of safety publicity and education and promoted Rescue and deployment emergency evacuation material The automatic fire alarm medical the continuous improvement of safety awareness among all employees of rescue safety repair system sounds an alarm or the alert the Company. on-duty safety guards, safety officers and other employees find abnormalities Strengthening Chemicals Management

In accordance with the Law of the People's Republic of China on Work Safety, Hazardous Chemicals Safety Regulations, Hazardous Chemicals Directory and other laws, regulations and policy documents, Ganfeng Lithium has formulated a series of management rules to guarantee that the management of hazardous chemicals in every segment On-site personnel confirm whether is well-documented, such as the Hazardous Chemicals Registration Management System, Hazardous Chemicals there is danger Emergency rescue Usage Management System, Hazardous Chemicals Storage Management System, Hazardous Chemicals Disposal organization is launched Management System, Hazardous Chemicals Guidelines for the Detection and Control of Safety Risks in Enterprises and Hazardous Chemicals Transportation Management System.

restore order No With reference to the Guidelines for the Investigation and Governance of Corporate Safety Risks in Hazardous on site Chemicals, Ganfeng Lithium conducts quarterly safety and environmental inspections of its subsidiaries, and urges The entire company enters warning status timely rectification of the problems found. Each department fills in the Inbound and Outbound Ledger with reference to Yes the Safety Technical Manual, Safety Labels and other guidelines to carefully assess and control risks throughout the process from purchase and sale, transportation and storage to outbound delivery. Each subsidiary organizes no less the person in charge than two plant-level safety and environmental inspections every month, exerting strict control of dangerous chemicals. at the scene initiates Government an on-site warning departments Restore order on site All relevant departments Identifying chemical hazards within the scope of work

On-site handling external rescue On-site handling completed agencies Department of Safety and Environmental Collecting chemical hazards and assessing risks Protection Supplementary hazard assessment External rescue agencies enter warning status Re-evaluation after the original hazard risk If the accident expands, level has been changed the commander-in-chief Forming a chemicals risk assessment form issues a company-level emergency rescue order After approval, issuing the form to each department External rescue agencies enter the scene to rescue to guide its chemicals management work Ensuring Safety and Ganfeng Lithium Co.,Ltd. 70 Employee Health 2020 Sustainability Report 71

In 2020, on the basis of the existing standardized management system for hazardous waste, Ganfeng Lithium made Safeguarding Occupational Health in-depth studies to ensure the implementation of solid waste compliance management, and resolutely eliminated environmental pollution caused by solid waste. Some hazardous wastes cause serious environmental pollution due to their infectious, corrosive, flammable and toxic properties. The environmental pollution caused is not only serious, but also irreversible and difficult to manage. The Company studied in depth the new version of the Solid Waste Pollution Ganfeng Lithium pays high attention to the occupational health and safety of employees. The Company complies Prevention and Control Law (referred to as the "New Solid Waste Law") officially implemented in September 2020, and with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, National guided by the National Hazardous Waste List correctly identified hazardous waste, comprehensively managed and Occupational Health Standards of the People's Republic of China, Occupational Health Monitoring Management supervised the use of hazardous chemicals to eliminate potential environmental impact during operation. Measures, Health Inspection Projects and Cycles, "Three Simultaneities" Supervision and Management Measures for In 2020, all the transportation vehicles of Xinyu Ganfeng Transportation Co., Ltd. were installed with 4G intelligent video Occupational Disease Protection Facilities of Construction Projects and Catalogue of Occupational Disease Hazard surveillance systems that were connected to 4 dangerous goods transportation management platforms from other Factors, among other laws or regulations. We have formulated and refined the Company's internal occupational health provinces to realize the visual and dynamic management of vehicle and personnel safety. Drivers can use a mobile management regulations based on the business characteristics. With reference to the OHSAS 18001 certification that it phone APP to enter the system to perform related operations, and the transportation company and the transportation has obtained, the Company implements systematic management of occupational health by formulating and continuously management platform can simultaneously obtain the vehicle's driving trajectory, personnel information, vehicle improving relevant regulations such as the Occupational Health and Safety Inspection and Measurement Management, information, etc. Occupational Health File Management, Company Safety Operation Management, etc., which include a full range of detection methods for hazard factors such as project pre-evaluation, special evaluation, control effect evaluation and Transportation companies carried out joint emergency rescue drills for current status evaluation. dangerous goods transportation accidents In 2020, the Company revised the Management Regulations for Occupational Health Examination of Employees to carry out targeted occupational hazard control. The Company comprehensively carried out regular physical examinations In June 2020, Xinyu Ganfeng Lithium Transportation Co., Ltd. and 7 hazardous chemical transportation and occupational health monitoring, covering 100% of personnel exposed to occupational hazards. Our transportation companies in Xinyu organized the 2020 emergency rescue drill for the transportation of dangerous goods in companies comprehensively guaranteed the safety and health of drivers and safety officers by equipping them with work Xinyu City. Based on the characteristics of existing hazardous chemicals, they formulated special plans to necessities such as helmets, protective glasses, reflective clothing, labor protection supplies, etc. Safety education and improve the emergency response capabilities of employees in handling hazardous chemical leakage incidents. training were organized from time to time to strengthen their professional knowledge and capacity building as well as Through the simulation of hazardous chemical leakage and the explanation of on-site professionals, drivers self-protection awareness. and safety officers carried out drills for emergency, escape and self-rescue against primary hazardous chemical leakage to improve their risk control awareness during the transportation of hazardous materials. In these emergency drills, all equipment played an effective role in controlling the impact of hazardous chemicals on the health of personnel. In addition, environmentally sound treatment was carried out to reduce the potential impact caused by the leakage of hazardous chemicals.

In 2020, the Company invested No occupational diseases 4.27 million Yuan in among new employees personal protective equipment for occupational health

Employees of transportation companies participating in joint drills No fatal Employee injury rate of accidents at 0% work in the past three years

Zero days lost due to work injury Delivering Happiness with Ganfeng Lithium Co.,Ltd. 72 People-Oriented Ganfeng Lithium 2020 Sustainability Report 73

Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 18

Materiality Analysis Response to UN SDGs

In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices analysis of the issues disclosed in peers' sustainability reports. With combination of the mainstream ESG ratings and indices in capital markets and in accordance with the requirements of the Appendix 27 ESG Reporting Guide to the Listing Rules on The company continuously helps the families of poor employees to get out of poverty. Over the years, we the Hong Kong Stock Exchange, sorted out the sustainable development issues related to the industry and the company. Upon have actively participated in poverty alleviation, helped improve the lives of poor residents and sent gifts discussion and screening by the Sustainable Development Office, we arrived at 22 sustainable development issues for the year. to poor households on festive occasions.

The company used questionnaires to determine the extent and boundaries of disclosure of these issues to ensure accurate and For more than 10 years, the company has assisted needy students in various forms such as complete disclosure of information related to operation and management. In 2019, we recovered a total of 12 copies of executive funding for study and music classroom building. The company cooperates with universities and questionnaire and 116 copies of stakeholder questionnaire, and collected opinions and suggestions from all stakeholders on the research institutes to carry out projects that train professionals in the lithium industry. company's sustainable development management which will serve as important basis and direction for the company's future. In opposition to gender discrimination, the company implements equal pay for equal work for Based on the evaluation of all social responsibility issues by stakeholders and executives, the company's 2019 materiality matrix men and women, protects the legal rights and benefits of female employees and increases the Ganfeng Lithium Co., Ltd. 2019 Sustainability Report 17 on sustainable development was finalised and reported to the company's board of directors for approval. proportion of female executives gradually. 18

The production wastewater and domestic sewage generated by the company's operations are properly treated to reach standards and then discharged to municipal sewage pipe networks without polluting local Ganfeng Lithium Co., Ltd. Materiality matrix of sustainable development rivers and lakes. 2019 Sustainability Report 17 18 issues of Ganfeng Lithium in 2019 Materiality Analysis ResponseThe to company UN has replacedSDGs coal with steam and natural gas step by step and leveraged rooftop photovoltaic power generation and self-produced energy storage batteries to increase the use Ganfeng Lithium Co., Ltd. of clean energy. 2019 Sustainability Report 17 In 2019, we carried out different forms of interaction and communication with stakeholders and completed a benchmarking Ganfeng Lithium's Practices 18 The company supports the development of strategic emerging industries that facilitate sustainable economic growth, bans Materialityanalysis of the issues Analysis disclosed in peers' sustainability reports. 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The company regards safe production as the Operation with integrity The company has replaced coal with steam and natural gas step by step and leveraged rooftop The production wastewater and domestic sewage generated by the company's operations are properly company's sustainable development management which will serve as important basis and direction for the company's future. Technology innovation and In opposition to gender discrimination, the mostcompany important implements responsibility equal and pay strives for equal to create work afor safe and healthy working environment for its employees. 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Lowerer Importance to Sustainable Development of Ganfeng Lithium The company continuouslyThe company improves has established corporate governance, a symbiotic strengthens and win-win anti- relationship with corruption constructionpartners, andworking strives with to upstream establish and an downstream efficient and partners transparent in the industry chain Lowerer Corporate governance Social responsibility Environment responsibility Higher governance system.to push forward sustainable management. Importance to Sustainable Development of Ganfeng Lithium The company has established a symbiotic and win-win relationship with partners, working with upstream and downstream partners in the industry chain Corporate governance Social responsibility Environment responsibility to push forward sustainable management. Delivering Happiness with Ganfeng Lithium Co.,Ltd. 74 People-Oriented Ganfeng Lithium 2020 Sustainability Report 75

Improving Team Building Staff Composition

Ganfeng Lithium strictly abides by the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China and other relevant laws and regulations. We have formulated internal management systems such as the Recruitment Management Regulations and Salary Management Regulations. In the face of ever-changing industry competition and corporate development, we strive to create an equal and diversified recruitment model and actively promote the reform of the salary system. In 2020, Ganfeng Lithium introduced the IATF16949 quality management system, and carried out a series of updates and optimizations to the human resource management system to fully protect the legitimate rights and interests of employees in such aspects as recruitment, promotion, salary and benefits.

Employee Employment

Male Female ≥55 45-54 35-44 ≤34 The Recruitment Management Regulations of Ganfeng Lithium require the Company to follow the principle of "fairness, impartiality, openness, competition and selection of the best" when recruiting employees. For selection and promotion, we give priority to suitable employees who meet the requirements of the position open for recruitment and have outstanding performance in the Company, and then consider open recruitment to the public. The Company has formulated the Management Regulations for Non-Discrimination, No Harassment and No Abuse to give all applicants equal opportunities, and does not discriminate against any applicant due to differences in region, ethnicity, race, gender, habits, religious beliefs, etc. or give different considerations due to such factors as recommenders. In addition, the Company has formulated the Management Regulations for Prohibition of Forced Labor, Harassment and Abuse, which prohibit the use of force or coercion to obtain labor services and any mental or physical harassment and abuse in order to protect the personal freedom of employees.

In 2020, Ganfeng Lithium formulated the Recruitment Operation Guidelines and Care Management Regulations to ensure ideological and behavioral unity and standardization in the Company's recruitment and internal promotion. The Company conducted recruitment work according to the human resource demand plan which was divided into quarterly plans according to the time of talent demand generated, and carefully analyzed the types of personnel for recruitment, so as to select suitable recruitment channels and achieve sound recruitment results. The Company also actively Masters Bachelors and junior college General jobs Special jobs expanded recruitment channels. In addition to internal recruitment, our external recruitment channels included colleges, Below junior college Management the Internet, the talent market, talent exchange meetings, intermediaries, headhunters, advertising media, etc. We also encouraged employees to recommend all kinds of outstanding talents to the Company, which effectively improved the Company's talent pool.

In 2020, Ganfeng Lithium incorporated "cadre management" from routine work into the agenda and system for the first time, and formulated the Cadre Management Regulations to standardize the Company's workflow regarding the Compensation and Benefits selection, appointment, dismissal and evaluation of cadres and reserve cadres and clarify what kind of cadre team the Company needs. We organize an annual evaluation of all cadres and reserve cadres, including performance, professional ethics, integrity, etc., and link the results to remuneration, in order to promote the sustainable development Ganfeng Lithium actively carries out salary system reforms, taking performance as a strategic means to improve the of the Company's management. efficiency of employees and the Company. In 2020, Ganfeng Lithium updated the Provisions on Compensation and Benefits Management to determine the Company's human resource salary management principles, established and standardized salary management standards, improved the talent incentive mechanism, and rationally distributed labor compensation. The Company's welfare management standards were detailed to provide employees with secure non- salary benefits.

The Company follows the three major principles of "competitiveness, incentive and fairness" in the distribution and management of remuneration. We combine the salary level of the same industry and in the region to bring the Company's salary level in line with the external market. At the same time, through performance appraisal, we closely integrate the overall performance of the Company and the department and the individual performance of employees with employee income to stimulate their enthusiasm for work, and set up salary grade promotion channels to encourage employees to work hard for excellent work performance. In addition, we have established a reasonable salary value evaluation mechanism to evaluate employee performance based on factors such as job status, work difficulty, personal ability and market conditions, so as to determine the employees’ final income. Delivering Happiness with Ganfeng Lithium Co.,Ltd. 76 People-Oriented Ganfeng Lithium 2020 Sustainability Report 77

Pooling Strength for Development Focused Training Programs at Ganfeng Lithium Business School

大学生入职培训Orientation training for college graduates Ganfeng Lithium regards employee growth and development as the foundation of the Company's long-term development. The Company has formulated Management Regulations for Employee Development and Training In July 2020, Ganfeng Lithium Business School held the 2020 orientation training for college graduates as and other internal system documents to create a comprehensive knowledge system for employees. Through scheduled, which by combining classroom training and outreach allowed new employees to quickly understand various regular training activities and special training courses organized by Ganfeng Lithium Business School, the Company's system and general situation and to get to know each other, helping them integrate into the new we use a more standardized, scientific and systematic training system to help employees quickly integrate into environment as soon as possible. the Company, improve specialty skills and continuously grow to create a high-quality workforce for the Company, thereby providing human resources guarantee for the sustainable development of the Company.

Employees involved Training hours per Percentage of intraining person： employees receiving ： 110,582 25.21 training：100%

Orientation training for college graduates

Focused Training Programs at Ganfeng Lithium Business School

New employee Management improvement training with the theme of "building a learning team with growth potential" orientation

In September 2020, Ganfeng Lithium Business School carried out management improvement training with Pre-job training the theme of "building a learning team with growth potential" for the Company's middle and senior managers. Regular Chairman Li Liangbin and Executive Vice President Deng Zhaonan talked about how to form a team and training Safety training implement management. In addition, excellent external lecturers were hired to teach the participants how to master the key core concepts of the book entitled "From Outstanding to Excellent" on the spot. They extracted key methods and tools from the book and applied them in different scenarios to further improve the level of the Specialized Company's management personnel. Training technical training category

Instructor training

Special Induction training for training college graduates

Management team training

Management Improvement Training with the theme of "building a learning team with growth potential" Ganfeng Lithium Staff Training Program Delivering Happiness with Ganfeng Lithium Co.,Ltd. 78 People-Oriented Ganfeng Lithium 2020 Sustainability Report 79

Employee training management of the Cauchari-Olaroz project in Argentina The 4th Workers' Congress of Ganfeng Lithium

Minera Exar recognizes that the success of an organization is closely related As the May 1st Labor Day in 2020 was approaching, the 4th Workers' Congress cum Corporate Culture Work to skilled and well-trained employees, and that the local community is also As of the end of 2020, Conference of Ganfeng Lithium was held in Jiangxi. 204 employee representatives from the Company's 16 units vital to the operation of the organization. For these reasons, the Company attended the meeting. provides a large number of opportunities for training and education to local the Company had community residents to improve their employment and entrepreneurial provided more than At the meeting, Li Liangbin, Chairman of Ganfeng Lithium, made a concluding speech, explaining in detail the capabilities. Before the formal production of the project, we focus on the Company's operation and future development, and encouraged Ganfeng Lithium employee representatives to jobs for local preparation and training of employees, emphasizing the need to hire and 700 take the lead in making world-class products and building a world-class enterprise with a fighter’s mentality. community residents. train local community residents. The Company strives to help employees The Workers' Congress was held in 6 conference venues and solicited 49 proposals. After the research and acquire the necessary knowledge in order to better carry out their work discussion by the Workers' Congress Proposal Review Committee, 47 proposals were filed, involving 32 items in and promote their personal growth. After the annual performance review, 9 categories. employees will be allocated with special development training to improve Other their specialized capabilities. Taking into account the huge resources that 2 the Company has in the local community, we selected 20 local suppliers to Canteen 3 participate in the training, introducing them to business management tools Corporate culture, 3 and technologies. As of the end of 2020, the Company had provided more 13 entertainment and life than 700 jobs for local community residents. 3 Work environment

Vigorous Spirit Salary 7 Training 8 Ganfeng Lithium is committed to promoting the establishment of a healthy workplace and improving the happiness Vehicle management 8 and satisfaction of every member of the Company in an all-round way. We actively build communication channels for Accommodation employees, improve the trade union and workers' congress system, and help employees solve problems encountered in work and life. The Company provides employees with a full range of care projects, organizes a wealth of cultural and After the conclusion of the Workers' Congress, the Company from the height of safeguarding the rights and sports activities, and makes every effort for employees to enjoy a happy workplace in all aspects. interests of employees and promoting the development of the enterprise made concerted efforts to find solutions, make practical moves and seek practical strategies to form a vertically linked and horizontally synergized Listening to Employees proposal handling mechanism, which promoted the timely and effective implementation of proposals. The Ganfeng Lithium Trade Union was established 13 years ago. As a link between the Company and its employees, it has always been committed to building a harmonious labor relationship, gathering the strength of employees and promoting the common development of both parties. In this congress, participants elected Ganfeng Lithium attaches great importance to employee communication by actively seeking their actual opinions. The members of the fourth trade union committee, including the trade union chairman, vice chairman, commissary in Company conducted an anonymous employee satisfaction survey covering 62.36% of the Company's employees with charge of organization, etc. questions involving salary and compensation, incentive systems, welfare policies, etc. We collected suggestions from employees one by one. According to the results of the questionnaire, the Company made improvements and adjustments to existing problems to meet the needs of employees to the greatest extent and enhance workplace happiness.

Ganfeng Lithium launched an online "employee suggestion box"

In 2020, Ganfeng Lithium launched an online "Ganfeng Lithium Employee Suggestion Box" to listen to the reasonable demands of employees. After receiving opinions and complaints and finishing the preliminary review, we communicated with relevant departments and personnel to verify the situation and adopted their suggestions as appropriate. Serious cases were dealt with within a time limit. Those suspected of any crime were transferred to judicial organs. Moreover, adhering to the principle of strict confidentiality, the Company never disclosed the circumstances pending resolution to the complainant or the target of the complaint, and strictly prohibited any retaliation to ensure that the rights and safety of employees were protected.

With the employee suggestion box, the Company can widely listen to the voices of grassroots employees, strengthen honest and clean governance, improve employee relations, establish a good image, and optimize various tasks. Our employees can also give full play to the spirit of ownership and provide valuable opinions and suggestions on the Company's operations and development. Delivering Happiness with Ganfeng Lithium Co.,Ltd. 80 81 80 People-Oriented Ganfeng Lithium 2020 Sustainability Report 81

Caring for Every Employee Building a Warm Community

Ganfeng Lithium insists on fulfilling its social responsibilities by promoting corporate responsibility, using its own expertise Ganfeng Lithium cares about every employee and their families. Our care projects cover employees and children and and resources to create value for society, implementing targeted poverty alleviation and improving people's livelihood. parents, providing exclusive benefits in all aspects including body, mind and soul to meet their diverse needs. We care for local communities by devoting ourselves to voluntary services to deliver love through practical actions.

For employees’ For employees’ Fixed-point assistance by Ganfeng Lithium Western Resources Co., Ltd. For employees children parents The agreement signed between Ganfeng Lithium Western Resources Co. and the Shangheyuan Group, Yuanxia Our caring benefits Scholarships are set up Cash gifts are provided Group 1, Yuanxia Group 2, Nanjiatang Group 1, and Nanjiatang Group 2 of Huling Village, Shishang Town include health protection, for children of employees for each employee's surrounding the mine has formed a fixed-point assistance project. A total of 200,000 Yuan of assistance funds and gifts and holiday benefits. who enroll in universities. parents on their birthdays grants are paid to the five groups each year. In 2020, Ganfeng Lithium Western Resources Co. paid assistance Regular health checkups Those who enroll in at 60, 70, 80 and above funds as scheduled for the improvement of roads and lighting in Huling Village. are organized for national general colleges in tens. In addition, if employees every year. and universities can the employee, parents, In addition, in order to solve the water shortage in the surrounding farmland during mine operation, the Company Surprise birthday benefits receive a scholarship children or spouse are pumped water in time after production and used it for continuous irrigation of the surrounding farmland (lotus and are given to employees of 500 Yuan; those who hospitalized or pass away, rice fields), which met the normal water demand of surrounding farmers. We provided gifts and sponsorships to in the month of their enroll in national 985/211 the Company will provide the nursing home of Shishang Town, including thermal underwear, shoes, computer printers, etc. to fulfill our social birthday. Marriage and colleges and universities condolences in cash responsibilities as a local enterprise. childbirth gifts are sent can receive a scholarship for hospitalization and to newlyweds and new of 1,000 Yuan. funerals. The Mariana project in Argentina interacts with surrounding residents parents.

In 2020, the Company played an important role in the social responsibility seminar organized by the Mining Department of the province where the Mariana project is located. The seminar brought together a large number of The Company has set up an employee mutual aid fund to provide assistance to employees in need. We have also set up local people's representatives, government officials and all local mining companies. At the seminar, the Company a variety of cultural and sports facilities including employee libraries, gyms, clubs, etc., so that each employee has a fair made active contributions and suggestions in corporate social responsibility planning, including: providing materials share of exclusive care. for the construction of a vegetable garden for a school, providing funds and donating prizes for local primary and secondary school activities, making donations to religious and cultural activities organized by local communities, donating cement and other building materials for road repair for Guido Spano School in San Antonio, providing Employee mutual aid fund training on health, safety and hygiene to members of a civil defense committee, as well as personal protective Transportation subsidy Five insurances and one housing fund equipment for emergency exercises, and donating firewood and other necessities to the community during periods of severe weather.

Employee library Housing subsidy

Employee Home Care Employee travel

Create a happy workplace Year-end bonus Paid annual leave 3 6 m 0° te car ys e + welfare s Employee club Meal subsidy

Employee gym Employee community

Employee training plan Key Performance of Ganfeng Lithium Co.,Ltd. 82 Sustainable Development 2020 Sustainability Report 83

Key Performance of Sustainable Development Type Indicator Unit 2020 2019

Master or above Person 120 131 Type Indicator Unit 2020 2019 Bachelor and junior college Person 1,177 1,069 Environment Particulates Ton 36.20 60.51 Below junior college Person 4,236 3,644 Exhaust gas Sulphur dioxide Ton 50.36 81.17 General jobs Person 3,672 3,522 emissions Number of employees Nitric oxides Ton 164.84 256.49 Special jobs Person 435 398 COD Ton 72.14 34.53 Wastewater Management Person 1,426 924 Ammonia nitrogen Ton 2.21 0.76 Fulltime Person 5,533 4,844 Hazardous waste Ton 146.71 406.75 Part time Person 0 0 Solid waste Non-hazardous Slag Ton 8,842.50 25,868.05 Overall turnover rate % 27.41 15.22 waste Coal cinder Ton 12,667.54 27,215.25 Total energy consumption Tons of standard coal 130,242.02 185,180.00 Male % 32.15 17.15 Energy consumption per unit of Tons of standard coal/ Female % 19.06 9.86 0.24 0.34 revenue RMB 10,000 ≤ 34 % 31.72 19.51 Lithium chemical Ton of standard coal/ton 35-44 % 13.95 12.07 Energy sector of LCE 2.22 2.28 consumption per unit of 45-54 % 4.99 5.15 Energy product Lithium battery Ton of standard coal/ Turnover rate consumption sector MWH 9.91 10.56 ≥ 55 % 0.54 0.42

Coal Ton 50,609.51 129,681.00 Master or above % 35.83 28.36

Power 10,000 KWH 36,226.28 37,880.01 Bachelor and junior college % 30.25 23.64 Diesel Ton 357.82 468.48 Below junior college % 23.81 12.72 Natural gas 10,000 m3 492.29 521.71 Gasoline Ton 2.18 15.50 General jobs % 40.92 18.71 Use of water in total 10,000 tons 237.35 342.17 Special jobs % 0.42 1.46 Water consumption per unit of Management % 9.87 6.12 Tons/RMB 10,000 4.30 revenue 6.41 Water Fatality Person 0 0 Lithium chemical Occupational health Water Ton/ton of LCE 38.62 consumption sector 40.72 Serious injuries per thousand of employees % 0 0 consumption per unit of Lithium battery Percentage of trained employees % 100 100 Ton/MWH 19.9 product sector 20.44 Employee training Training hours per person Hour 25.21 29.68 Packaging Use of plastic Ton 2.50 3.13 materials Number of domestic suppliers / 2,780 2,585 Supplier Pending calculation by a Number of international suppliers / 3 6 Scope 1 tCO e 2 third-party agency 30.22 Proportion of product recalls due to safety Greenhouse gas Pending calculation by a % 0 0 Scope 2 tCO e 8.82 and health reasons emissions 2 third-party agency Product liability Greenhouse gas emissions per unit Pending calculation by a Customer satisfaction % 95.12 93.04 tCO e /RMB 100 million of revenue 2 third-party agency 0.73 Anti-corruption Number of corruption lawsuits Case 0 0 Society Community investment External assistance and donations RMB10,000 303.6 237.3 Total employees Person 5,533 4,844

Male Person 3,530 3,207 Data-gathering used Female Person 2,003 1,637 Number of 1. The company hires third-party agencies to conduct greenhouse gas emissions accounting every year. The reported carbon emissions ≤ 34 Person 2,096 1,941 employees only refer to carbon dioxide emissions and do not include such types of greenhouse gases as methane and nitrous oxide emitted by 35-44 Person 1,938 1,668 other emission sources. The calculations were made in accordance with the Guidelines for the Calculation and Reporting of Greenhouse 45-54 Person 1,373 1,122 Gas Emissions of Chinese Chemical Production Enterprises (Trial) and the emission factors, of which the emission factor of purchased electricity took the average carbon dioxide emission factor of Central China Grid from the 2012 version of the Baseline Emission Factors ≥55 Person 126 113 of Regional Power Grids in China. By the release of this report, the third-party verified data on greenhouse gas emissions in 2020 has not been obtained and will be disclosed on the company's official website, when available. Ganfeng Lithium Co.,Ltd. Disclosures and KPIs Compliance 2020 Sustainability Report 84 with HKEX ESG Reporting Guide 85

Disclosures and KPIs Compliance with HKEX ESG Reporting Guide B2: Health and Safety General Disclosure p66 B2.1 Number and rate of work-related fatalities. p71,83

B2.2 Lost days due to work injury. p71,83 Environmental, Social and Governance Reporting KPIs Page Description of occupational health and safety measures adopted, how they are B2.3 p66-71 Environment implemented and monitored. B3: Development and Training A1 : Emissions General Disclosure p76 The percentage of employees trained by gender and employee category (e.g. senior General Disclosure p50-57 B3.1 p76,83 management, middle management). The average training hours completed per employee by gender and employee A1.1 The types of emissions and respective emissions data. p53-57,p82 B3.2 p76,83 category. Greenhouse gas emissions in total (in tonnes) and, where appropriate, A1.2 p82 B4: Labour Standards intensity (e.g. per unit of production volume, per facility). Total hazardous waste produced (in ton) and, where appropriate, intensity (e.g. General Disclosure p74 A1.3 p53,82 per unit of production volume, per facility). Description of measures to review employment practices to avoid child and forced B4.1 p74 Total non-hazardous waste produced (in ton) and, where appropriate, intensity labor. A1.4 p53,82 (e.g. per unit of production volume, per facility). B4.2 Description of steps taken to eliminate such practices when discovered. p74

A1.5 Description of measures to mitigate emissions and results achieved. p53-57 Operating Practices Description of how hazardous and non-hazardous wastes are handled, A1.6 p53-55 B5: Supply Chain Management reduction initiatives and results achieved. General Disclosure p34-37 Aspect A2: Use of Resources B5.1 Number of suppliers by geographical region. p35,83

General Disclosure p58-62 Description of practices relating to engaging suppliers, number of suppliers where B5.2 p34-37 the practices are being implemented, how they are implemented and monitored. Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) A2.1 in total (kWh in ’000s) and intensity (e.g. per unit of production volume, per p82 B6: Product Responsibility facility). Water consumption in total and intensity (e.g. per unit of production volume, General Disclosure A2.2 p82 per facility). Percentage of total products sold or shipped subject to recalls for safety and health B6.1 p46,83 reasons. A2.3 Description of energy use efficiency initiatives and results achieved. p58-59 Number of products and service related complaints received and how they are dealt Description of whether there is any issue in sourcing water that is fit for B6.2 p46 A2.4 p60-61 with. purpose, water efficiency initiatives and results achieved. Description of practices relating to observing and protecting intellectual property Total packaging material used for finished products (in ton) and, if applicable, B6.3 p43 A2.5 p59 rights. with reference to per unit produced. B6.4 Description of quality assurance process and recall procedures. p46 Aspect A3: The Environment and Natural Resources Description of consumer data protection and privacy policies, how they are B6.5 implemented and monitored. 不適用 General Disclosure p63 B7: Anticorruption Description of the significant impacts of activities on the environment and A3.1 p63 General Disclosure p24 natural resources and the actions taken to manage them. Number of concluded legal cases regarding corrupt practices brought against the B7.1 P25 Social issuer or its employees during the reporting period and the outcomes of the cases. Description of preventive measures and whistle-blowing procedures, how they are B7.2 P24-25 B1: Employment implemented and monitored. B8: Community Investment General Disclosure p74-75 General Disclosure P81 B1.1 Total workforce by gender, employment type, age group and geographical region. p75,82 Focus areas of contribution (e.g. education, environmental concerns, labor needs, B8.1 P81 health, culture, sport). B1.2 Employee turnover rate by gender, age group and geographical region. p83 B8.2 Resources contributed (e.g. money or time) to the focus area. P81,83 Ganfeng Lithium Co.,Ltd. Feedback form 86 2020 Sustainability Report 87

Feedback Form

Dear readers,

Thank you for reading the Sustainability Report of Ganfeng Lithium in 2020. We sincerely hope to get your comments and suggestions regarding this report and our work as well. Please send the filled feedback form to us via mail, email after scanning, or call us to give valuable advice directly. Really appreciate it.

Address Longteng Road, Economic Development District, Xinyu City, Jiangxi Province ： Email: [email protected]

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April 2021