Guojin Securities: We recommend focusing on companies that are pioneers in the lithium sulfide industry and have certain technical advantages.

Guojin Securities research report believes that as the pace of industrialization of solid-state batteries accelerates, upstream core materials will also benefit from it. The core change in solid-state batteries compared to liquid batteries lies in the use of solid electrolytes instead of liquid electrolytes and separators. Solid electrolytes, as the core of all-solid-state lithium battery technology, directly affect key performance indicators such as power density, energy density, and cycle life of batteries. From the industrial application status of solid electrolytes, the currently relatively mature routes are sulfide and oxide routes, with sulfide electrolytes having the optimal ionic conductivity and the highest proportion of downstream enterprise capacity layout. They have the greatest potential for future development. Considering that lithium sulfide is the core raw material in the sulfide route, it is recommended to pay attention to enterprises that are pioneers in layout of lithium sulfide and have certain technological advantages. Oxide electrolytes have moderate ionic conductivity but good stability, so the industrialization progress is also accelerating. It is recommended to pay attention to enterprises that have laid out multiple oxide electrolytes and have certain cost advantages in the industry chain.