The story is set in the same One Year War in UC 0079 as the first Mobile Suit Gundam anime series. It follows the battles between two ace pilots of the Principality of Zeon and the Earth Federation at the "Thunderbolt Sector," a shoal zone with numerous wrecks of space colonies and warships.
 
(Source: Anime News Network)

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During the One Year War of U.C. 0079, the Earth Federation and Principality of Zeon engage in a fierce battle at the "Thunderbolt Sector", a shoal zone in the former Colony Side 4 "Moore". After successfully infiltrating Zeon's sniper field, ace Federation pilot and jazz enthusiast Io Fleming is given control of the latest Gundam prototype. 
(Source: Gundam Wikia)

The second season of Kidou Senshi Gundam Thunderbolt.
 
Seven months after the One Year War ended, the remnants of the Principality of Zeon reform as the Republic of Zeon and continue to battle. Daryl had piloted the mobile suit Psycho Zaku in the end of the war at the "Thunderbolt Sector," where the Moore Brotherhood's fleet was annihilated. After losing the Psycho Zaku, Daryl descends to Earth and takes up an intelligence position to gain information about the South Seas Alliance, a military group within the Earth Federation. Io, who faced off against Daryl, is selected to pilot the prototype mobile suit Atlas Gundam and heads toward Earth. 
 
(Source: Anime News Network)

Eight months after the One Year War, the Earth Federation attempts to secure and destroy the Psycho Zaku from the hands of a cult called South Seas Alliance. 
 
Note: This is a compilation film recapping the events from the second season.

In the Universal Century year 0079, the space colony known as Side 3 proclaims independence as the Principality of Zeon and declares war on the Earth Federation. One year later they are locked in a fierce battle for the Thunderbolt Sector, an area of space scarred by the wreckage of destroyed colonies.
 
(Source: VIZ Media)

Claudia Peer