Hong Kong stock concept tracking | The solid-state battery industry is accelerating, and the speed of mass production is expected to exceed expectations (with concept stocks)

Multiple departments of the country focus on supporting solid-state batteries, with a focus on sulfides. The pace of small-scale production is expected to be advanced to 2026-2027: In December 2023, the State-owned Assets Supervision and Administration Commission established the Solid-State Battery Industry Innovation Alliance, led by FAW Group, with a total of 38 research institutions participating. The goal is to achieve full solid-state application of sulfides in vehicles by 2026, with an energy density of 400Wh/kg and a cycle life of 1000 times. In 2025, the Ministry of Industry and Information Technology will restart a major research and development project: applications were submitted in February 2024, defended in April, evaluation results released at the end of April, public announcement in May, with a total funding amount of 6 billion yuan, distribution beginning in December. Each project will receive 800 million yuan, with three projects focused on sulfides (CATL, BYD Company Limited, FAW Group), three on semi-solid-state batteries (Weilan, Qingga, Geely), and one on liquid-state batteries (Contemporary Amperex Technology). Additionally, 200 million yuan will be allocated for the construction of an intellectual property system and another 200 million for characterization system construction. The goal is for each project to achieve 1,000 demonstration vehicle applications by 2027. Furthermore, in February 2025, the second batch of applications will be organized, and approved companies will no longer receive duplicate funding, with the pace and scale expected to be similar to the previous year. The National Development and Reform Commission will provide actual investment assistance equal to 15% of the total for the establishment of solid-state battery enterprises and institutions through ultra-long-term national bonds. Companies must apply on their own and be recommended by local development and reform commissions to be evaluated by the National Development and Reform Commission. Research by Soochow Electric New Energy suggests that with strong national support, the solid-state battery industry chain has developed rapidly in the past six months. With top companies in the industry chain upgrading their equipment, mass production progress is expected to exceed expectations. Currently, the price of sulfide electrolytes is in the millions of yuan per ton (lithium sulfide in the hundreds of thousands of yuan per ton). According to project guidance, by 2026, the price needs to drop to 2.5 million yuan per ton (lithium sulfide to tens of thousands of yuan per ton), and eventually decrease to tens of thousands of yuan per ton (lithium sulfide to 200,000 yuan per ton). If achieved, the cost of solid-state batteries is expected to drop to 0.4 yuan/Wh by 2030, potentially leading to large-scale production in the low-altitude, power, and Siasun Robot & Automation sectors. Cinda released a research report stating that looking at the future value of various raw materials for solid-state batteries, the value of the positive electrode material for solid-state batteries is the highest, with a value of 190 million yuan per GW. Next is the value of sulfide electrolytes. With the acceleration of solid-state battery industrialization and the gradual maturation of technology routes and supply chains, the report suggests focusing on the solid-state battery industry chain targets related to semi-solid-state batteries (oxides, polymers) and full solid-state batteries (halides, sulfides). Related stocks in the solid-state battery industry chain: Jiangsu Lopal Tech.(02465): Jiangsu Lopal Tech. has previously announced that its fully-owned subsidiary, SijingLithium Battery, is focusing on the development of solid-state battery precursors and has already built a first-phase production capacity of 5,000 tons. In addition, Jiangsu Lopal Tech. recently announced that, in order to actively expand overseas markets and enhance the company's market competitiveness and overseas influence in the lithium battery materials field, its three-levelcontrolled subsidiary, Beijing Lithium, plans to introduce LG New Energy as a strategic investor through capital increase and expansion. After the transaction is completed, LG New Energy will acquire a 20% stake in Beijing Lithium. CALB (03931): CALB's "Boundaryless" full solid-state battery technology has an energy density of up to 430Wh/kg and a capacity of over 50Ah. This technology has made significant breakthroughs in battery operating pressure, lifespan, and power. CALB has released the Top Flow High Energy-Super Flight Battery, with the first generation of 300Wh/kg flight batteries to be launched in 2025, and the second generation of flight-specific batteries with an energy density of 350Wh/kg planned for 2026. Guangzhou Automobile Group (02238): Guangzhou Automobile Group's full solid-state battery uses 100% solid-state electrolyte and has an energy density of over 400Wh/kg. This technology utilizes third-generation sponge silicon negative electrodes and high-capacity solid-state positive electrode technology, achieving a more than 52% increase in volume energy density and a more than 50% increase in mass energy density. TIANNENG POWER (00819): Tianneng Battery Group Co., Ltd.'s independently developed solid-state batteries have an energy density of 511Wh/kg and have passed third-party national testing and certification. Currently, these solid-state battery products are undergoing on-site testing with downstream customers to accumulate experience in solid-state battery research and development. Tianneng Battery Group Co., Ltd. has stated that it will continue to increase research and development efforts to promote the research, industrialization, and commercialization of solid-state battery technology. In addition, the new Panshi series solid-state batteries from Tianneng Battery were unveiled at the 2024 Zhejiang Expo, with an energy density of 300Wh/kg suitable for high-performance electric motorcycles, providing a range of up to 130km. REPT BATTERO (00666): REPT BATTERO's project "Long-life, High-energy Density Full Solid-State Lithium Battery" was successfully selected to be included in the list of "Leading Geese + X" technology programs in Zhejiang Province for 2025. This project will further accelerate and deepen the research and development of the company's full solid-state battery. In the field of full solid-state batteries, the energy density of the solid-state battery cells produced by the company is expected to exceed 400Wh/kg or above through the "Leading Geese + X" technology project, and the products will be widely used in passenger vehicles and new applications such as low-altitude aircraft. BYD Company Limited(01211) + BYD ELECTRONIC(00285): BYD Company Limited's Fudi Battery has chosen a technology route for sulfide composite electrolytes + high-nickel ternary (single crystal) + silicon-based negative electrode (low expansion) in the field of full solid-state batteries. This route aims to balance high energy density, safety, and commercial potential.