Soochow: Solid-state batteries will enter a critical period in 2026, expected to bring a large-scale market rally.

Soochow released a research report stating that the policy end is the core DRIVE for the industrialization of solid-state batteries. Several national departments are focusing on supporting solid-state batteries, with technical focus on sulfide solid-state batteries aiming for demonstration operation in 2027. With strong support from the government, the industrial chain of solid-state batteries has developed rapidly in the past 25 years. Looking ahead to 2026, solid-state batteries are entering a crucial period, with the production of Pack for H1 vehicles starting and the expected start of mass production lines for H2. The firm believes that the core catalyst in 2026 lies in the bidding for GWh-level mass production lines and road tests of vehicles related to solid-state batteries, which is expected to bring a market situation similar to the two major surges in 2025. It is recommended to focus on the bidding status of top companies' production lines and the new vehicle models that will appear in the Ministry of Industry and Information Technology declaration list. Soochow's main points are as follows: In 2026, solid-state batteries enter the road test stage, with the marginal change shifting from battery cells to Pack, focusing on the progress of vehicle road tests. In 2025, the industrialization of solid-state batteries accelerated, with the production of battery cells for H1 vehicles and the start of pilot lines for H2 leading to two major uptrends. Looking ahead to 2026, solid-state batteries are entering a crucial period, with Pack for H1 vehicles starting and road tests for vehicle validation beginning, as well as the expected start of mass production lines for H2. The firm believes that the core catalyst in 2026 lies in the bidding for GWh-level mass production lines and road tests of vehicles related to solid-state batteries, which is expected to bring a market situation similar to the two major surges in 2025. It is recommended to focus on the bidding status of top companies' production lines and the new vehicle models that will appear in the Ministry of Industry and Information Technology declaration list. With features like wide temperature range, high energy, and safety, solid-state batteries are naturally suited for the space sector. The space system exhibits characteristics such as vacuum, extreme temperature difference, and high radiation, with temperatures ranging from -200C to +150C in the environment. Liquid batteries operate in temperatures ranging from -20C to +60C, while solid-state batteries have wide temperature ranges and high safety levels, not catching fire and not producing gas bags under radiation. The high energy density of solid-state batteries can lower launch costs, making them naturally suitable for the complex environment of the space sector. The annual demand for solid-state batteries in the satellite sector is expected to reach tens of GWh or even hundreds of GWh, with applications in deep space probes, lunar bases, and other areas, further expanding the imagination. Investment recommendation: The first line recommends investing in the highest barrier battery segment, with a focus on Contemporary Amperex Technology, Gotion High-tech, Jinlongyu Group, among others; the second line recommends investing in equipment, with recommendations for Shanghai SK Automation Technology, NAKNOR, Wuxi Lead Intelligent Equipment, Shenzhen United Winners Laser Co., Ltd, and a focus on Ongoal Technology, LINGOOD, LETONE TECHNOLOGY, Hymson Laser Technology Group, Guangdong Lyric Robot Automation, Sokan New Materials Group; the third line recommends investing in materials, with a focus on lithium sulfide+electrolytes, and recommendations for Shanghai Emperor of Cleaning Hi-Tech, Xtc New Energy Materials (Xiamen) Co., Ltd., Beijing Easpring Material Technology, Guangzhou Tinci Materials Technology, Yunnan Energy New Material, Jiangsu HSC New Energy Materials, and a focus on Shandong Boyuan Pharmaceutical & Chemical, Nanjing Hicin Pharmaceutical, and secondary recommendations for Jiangsu Cnano Technology Co., Ltd., Ningbo Ronbay New Energy Technology; the fourth line recommends investing in new technologies, with a focus on Hubei Zhongyi Technology Inc., SINONIC, Guangdong Enpack Packaging. Risk alert: Potential risks include lower-than-expected progress in downstream applications, fluctuations in upstream raw material prices, and risks of technological substitutions.