Guotai Haitong: Demand in the lithium battery industry is recovering, and the progress of solid-state battery technology is accelerating.

Guotai Haitong released a research report stating that by July 2025, the production of power and energy storage in Chinese battery factories will reach 128GWh, with energy storage cell production accounting for over 30% of the total, and the total investment in expanding the industry chain projects exceeding 340 billion yuan. With leading companies accelerating their deployment of solid-state battery technology, the lithium battery equipment industry will see a new round of procurement cycles. The gradual recovery and expansion of the traditional lithium battery industry, combined with the further changes in equipment requirements due to solid-state batteries, are expected to bring new investment opportunities for lithium battery equipment companies. Guotai Haitong's main points are as follows: - The lithium battery industry is expected to rebound, leading to an increase in equipment procurement demand According to research data from the TD Industrial Research Institute on the top 20 battery factories, the power and energy storage production in Chinese battery factories is expected to reach 128GWh by July 2025, down by 4% compared to the previous month but up by 37% year-on-year. The production output of energy storage cells is estimated to account for approximately 30.3%, and ternary cells for about 17.9% of the total production. According to incomplete statistics from GGII, there are 123 expansion projects planned in the lithium battery industry chain from January to April 2025, with a total investment exceeding 340 billion yuan. The recovery in domestic demand for lithium batteries, coupled with the increased expansion efforts by battery manufacturers, is expected to drive a resurgence in the lithium battery equipment industry. - Solid-state battery companies are racing ahead, with industrialization on the horizon Driven by market demand, battery companies are accelerating their deployment of next-generation battery technologies such as solid-state batteries in search of breakthroughs. Companies like Contemporary Amperex Technology, BYD Company Limited, Eve Energy Co., Ltd., Gotion High-tech, Ganfeng Lithium Group, and Guangzhou Great Power Energy and Technology have achieved significant progress in the field of solid-state batteries, with some achieving pilot line completion or sample development, attracting market attention. For example, Contemporary Amperex Technology has chosen a sulfide + halide composite electrolyte system, with an energy density exceeding 500Wh/kg, and solid/semi-solid batteries have been put into production. Eve Energy Co., Ltd. has completed the development of sample soft-packed sulfide solid-state batteries and expects the commissioning of a pilot line of 100MWh to begin in 2025, with plans for a breakthrough in the solid-state battery production process in 2026 in order to launch a high-power, highly environmentally resistant, and absolutely safe solid-state battery primarily for use in the hybrid power sector. Furthermore, solid-state batteries have great potential applications in scenarios such as low-altitude aircraft and Siasun Robot & Automation. - Different solid-state battery processes may drive equipment development Equipment is a key bottleneck affecting the industrialization of solid-state batteries, and various lithium battery equipment manufacturers are actively developing relevant products. Companies like Wuxi Lead Intelligent Equipment have showcased their new generation solid-state battery production line solutions, covering key processes such as dry mixing coating, wet pulping coating, composite transfer printing, stacking, isostatic pressing, and vacuum lithium plating. Shenzhen Yinghe Technology has successfully delivered the first batch of solid-state battery equipment to domestic battery companies, including solid-state wet coating equipment, solid-state roller pressing equipment, and solid-state electrolyte transfer printing equipment. Hymson Laser Technology Group, in addition to providing complete line equipment supplies for high-energy density solid-state lithium metal batteries to Xingjian Energy, has also supplied sulfide solid-state battery pilot line equipment to a leading global new energy technology company. Several companies are enhancing their process layouts to support the mass production of solid-state batteries. Risk Warning: Technological progress and industrialization may not meet expectations, leading to increased industry competition.