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SMM January 19 News: On January 16, 2026, the Ministry of Industry and Information Technology, together with the National Development and Reform Commission (NDRC), the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Commerce, and the State Administration for Market Regulation, jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries of New Energy Vehicles (NEVs)." This new management measure is a joint departmental regulation with mandatory legal binding force, fundamentally changing the previous situation where guidance documents lacked sufficient enforceability. The main content of the new management measure includes the following points: I. Establishment of Production Coding for NEV Power Batteries. It will establish a "digital ID card" system for NEV power batteries, enabling full life cycle traceability management through unique codes, and ensuring full-process monitoring from production to retirement and recycling. Enterprises producing or importing power batteries for NEVs sold and used domestically (hereinafter collectively referred to as power battery enterprises) must code their batteries in accordance with the "Rules for Coding of Automotive Traction Batteries" (GB/T 34014). II. Determination of the Producer Responsibility System. The new management measure requires that power battery enterprises assume recycling responsibility for the power batteries they produce or import for domestic sales and use, and fulfill the following recycling obligations (excluding power batteries sold to NEV producers): sales regions for batteries must include recycling service outlets matching sales volumes to provide waste power battery recycling services; prominently update addresses of recycling service outlets and recycling reminder information; and they must not refuse to accept waste power batteries that should be recycled by the power battery enterprises, when transferred by battery swapping service enterprises or motor vehicle maintenance enterprises, etc. Meanwhile, power battery enterprises and NEV producers are encouraged to establish recycling service outlets in accordance with the "Management Specification for Recycling of Traction Batteries for Vehicles - Part 2: Recycling Service Outlets" (GB/T 38698.2). III. Real-time Registration on the Information Platform. The new management measure requires that end-of-life vehicle recycling and dismantling enterprises report vehicle retirement information and information on the warehouse withdrawals of dismantled waste power batteries according to the relevant provisions of the "Detailed Rules for the Implementation of the Regulations on the Recycling of End-of-Life Motor Vehicles." Furthermore, at various stages such as product certification, customs clearance verification, repair, battery swapping, and warehousing, the following information should be reported to the relevant platform. For example, NEV producers and enterprises importing NEVs for domestic sales should, within 6 months after obtaining the NEV product access announcement or mandatory NEV product certification, submit technical information on the disassembly and necessary dismantling of NEV power batteries. III. Real-time Registration on the Information Platform. The new management measure requires that end-of-life vehicle recycling and dismantling enterprises report vehicle retirement information and information on the warehouse withdrawals of dismantled waste power batteries according to the relevant provisions of the "Detailed Rules for the Implementation of the Regulations on the Recycling of End-of-Life Motor Vehicles." Furthermore, at various stages such as product certification, customs clearance verification, repair, battery swapping, and warehousing, the following information should be reported to the relevant platform. For example, NEV producers and enterprises importing NEVs for domestic sales should, within 6 months after obtaining the NEV product access announcement or mandatory NEV product certification, submit technical information on the disassembly and necessary dismantling of NEV power batteries. Consumers Should fulfill the entire chain of responsibilities from procurement to retirement to supervision: when purchasing, do not buy lithium battery products of unknown origin (especially those for e-bikes); at the time of retirement, deliver the vehicle along with the battery to a legitimate recycling enterprise; during supervision, actively report illegal recycling and dismantling activities. SMM believes that this policy innovation marks China's entry into a new phase of "strong regulation, full traceability, and strict law enforcement" in the management of power battery recycling. Through legal compulsion, digital technology, and inter-ministerial collaboration, it thoroughly ensures environmental traceability and effective utilization of scrap lithium batteries. As scrap batteries gradually enter an era of large-scale social retirement, this can effectively improve the utilization rate of batteries and reduce potential environmental risks.

Following the wave of energy storage orders going global, the Middle East has become a core hub for the overseas expansion of China's lithium battery industry capacity, leveraging its commitment to energy transition and strategic geographical advantages. Domestic leading enterprises have taken the lead in deploying the entire industry chain, creating deep resonance with the explosive demand in the Middle East's energy storage market. On the battery front, CORNEX New Energy took the initiative first. Public information indicates that this will be CORNEX New Energy's first overseas joint venture energy storage battery plant. According to foreign media reports on January 18, CORNEX New Energy signed a cooperation agreement with the Egyptian industrial manufacturer Kemet. The two parties will collaborate to build an energy storage battery factory in Egypt. Under the agreement, the core technology for the energy storage battery plant will be provided by CORNEX New Energy. The project involves an investment of $200 million, and the factory is expected to achieve an annual production capacity of 5 GWh upon completion. On January 16, CORNEX New Energy officially announced the signing of a strategic cooperation agreement with Egypt's WeaCan and Kemet. CORNEX New Energy, as the core supplier of technology and products, will supply a total of 6 GWh of high-grade energy storage products in phases. WeaCan and Kemet, as key facilitators for project implementation, will fully handle application scenario matching, government approval coordination, grid connection support, and localized operational services, leveraging their deep local industry resources and mature project operation experience in Egypt. Besides CORNEX New Energy, another energy storage system enterprise, Sungrow, plans to build a battery energy storage system (BESS) manufacturing plant in the TEDA industrial zone of the Suez Canal Economic Zone, covering an area of approximately 50,000 m². This is Sungrow's first production site in the Middle East and Africa. The factory is expected to create about 150 direct jobs, with production scheduled to commence in April 2027 and an annual capacity of 10 GWh. On the materials front, the electrolyte company Capchem announced plans to invest in a lithium-ion battery materials project in Saudi Arabia's Yanbu Industrial City through its wholly-owned subsidiary, Capchem Middle East Company. The total investment is approximately $260 million. The project will establish production lines with an annual capacity of 200,000 mt of carbonate solvents and a co-production capacity of 100,000 mt of ethylene glycol. The construction period will not exceed three years, with funding sourced from the company's own funds, self-raised funds, or by introducing third-party strategic investors for joint investment. The core point attracting enterprises to deeply layout in the region stems from the rise of the Middle East's ESS market. This area is accelerating its transformation from a "petroleum empire" to a "zero-carbon oasis." Countries like Saudi Arabia and UAE have set clear renewable energy targets. Saudi Arabia’s Vision 2030 requires over 15GWh of ESS, while the UAE is advancing the world's largest PV+ESS project. In 2023, regional ESS installations reached 1.2GWh, with lithium batteries accounting for 75%. Driven by the green hydrogen industry and the need for power supply security in extreme climates, it is expected that installations will grow tenfold by 2030. At the policy level, benefits such as tax exemptions in free trade zones and relaxed foreign ownership rules further lower the barriers for enterprises to establish themselves. Overall, the Middle East layout of Chinese lithium battery enterprises is both an inevitable choice for their globalization and a significant path to support the regional energy transition. Despite facing challenges such as high-temperature technical bottlenecks and localization barriers, with the maturation of capacity deployment and technology adaptation, both sides will achieve a higher level of mutual benefit in the green energy sector.

SMM January 30 News: Key Points: In January 2026, the solid-state battery industry chain accelerated comprehensively across materials, battery cells, capacity, and capital. Multiple technical routes—including ultra-high-nickel and lithium-rich manganese-based cathodes, silicon carbon anodes, and sulfide/oxide electrolytes—achieved breakthroughs in parallel, with planned capacity reaching the tens of GWh level. Automaker-driven prototype verification is being conducted intensively, marking the industry’s transition from R&D to pilot and mass production. 2026 is set to become a critical “verification year” for the scaled installation of semi-solid-state batteries and tackling engineering challenges of all-solid-state batteries, heralding the beginning of industry differentiation and consolidation. Introduction: 2026, Where the Dream Begins At the beginning of 2026, the global solid-state battery industry accelerated abruptly, shifting from laboratory sample competitions to full-scale preparations on the eve of mass production. Material systems achieved breakthroughs at multiple points, capacity plans were rolled out intensively, automaker validation proceeded at a rapid pace, and capital continued to flow into key segments. Technical pathways gradually converged amid diversified exploration, with the industrialisation of sulfide electrolytes standing out prominently. Ultra-high-nickel cathodes and silicon carbon anodes have become key pillars for increasing energy density. This report systematically reviews key industry chain developments in January, provides in-depth analysis of progress in cathodes, anodes, electrolytes, and battery projects, and aims to reveal the internal logic and core challenges as solid-state batteries advance from technological breakthroughs to scaled commercial application, while offering forward-looking judgments for 2026—a critical year for verification and differentiation. I. Cathode Materials: Dual Breakthroughs in Ultra-High-Nickel and Lithium-Rich Manganese-Based Routes Accelerate Industrialisation In January, the cathode materials sector exhibited parallel development along two mainstream technical routes: ultra-high-nickel and lithium-rich manganese-based. Easpring Technology’s “dual-phase composite ultra-high-nickel cathode material” was included in the SASAC achievement catalog, signifying that the material has passed authoritative certification toward achieving a 350 Wh/kg energy density target. Its integrated 14 patent achievements and specific precursor design provide a feasible solution to challenges such as cycling stability and interfacial side reactions in ultra-high-nickel materials. Meanwhile, the cobalt-free lithium-rich manganese-based route continues to attract attention due to its higher theoretical capacity and cost advantages. GEM disclosed its patent for monocrystalline cobalt-free lithium-rich manganese-based cathode material, which uses a unique grain-boundary separation assistant and a two-stage sintering process aimed at resolving issues such as low initial efficiency and voltage decay, with explicit adaptation for solid-state batteries. Yixing Canmax (controlled by Canmax) invested 1.12 billion yuan to build a mass production line with an annual capacity of 5,200 mt of high-nickel ternary cathode material for solid-state batteries, of which a 200 mt pilot line is already in operation, indicating that upstream segments of the industry chain are actively advancing laboratory achievements toward scaled production. Chery’s Exeed brand announced that its “Rhino S” all-solid-state battery will adopt a lithium manganese-based cathode, targeting a cell energy density of 600 Wh/kg. Although this is a long-term plan, it reflects automakers’ forward-looking layout for next-generation cathode materials. In summary, the trends toward higher nickel content and manganese-based cathodes are clear, and 2026 will be a critical year for material system optimization, verification of engineering and mass-production capabilities, and customer sample testing. II. Anode Materials: Accelerated Industrialisation of Silicon Carbon Anodes, Lithium-Metal-Free Anodes Emerge The core of anode materials lies in improving energy density, with silicon carbon anodes and lithium metal anodes being ideal partners for solid-state batteries. The 50,000 mt annual silicon carbon anode project of Furi Co., Ltd. has completed its environmental assessment, and its 200 mt pilot capacity is operating at full load. Qingdao Zhengwang's first batch of silicon carbon anodes produced via the CVD method has been successfully manufactured, indicating that the preparation process for silicon-based anodes is transitioning from the laboratory to scaled trial production. The CVD (chemical vapor deposition) method, due to its advantage in uniformly coating carbon layers on silicon particles, is regarded as one of the mainstream processes for high-end silicon carbon anodes. The 10,000 mt-level silicon carbon anode material industrialisation project launched by Gotion High-tech in Lujiang further demonstrates the determination of leading battery enterprises to extend their reach into upstream core materials. On the other hand, patent progress has been made in "lithium-metal-free anode" technology targeting lithium metal. Qingtao Energy's patent reveals a design featuring an elastic buffer layer on the anode current collector side to accommodate volume changes during lithium deposition/stripping, which is one of the key engineering solutions for practical lithium metal anodes. By 2026, silicon carbon anodes are expected to achieve GWh-level applications alongside the initial volume production of semi-solid/solid-state batteries, while true lithium metal anodes will remain in the prototype development and safety validation stage, still some distance away from mass production. III. Electrolyte Materials: Sulfide Route in Full Swing, Oxide Route Steadily Advances, Low-Cost Solutions Emerge Electrolytes are the core of solid-state batteries. January developments highlighted the sulfide route as the most active in industrialisation, with the oxide route advancing steadily and disruptive low-cost solutions emerging. Sulfide Electrolytes: High concentration of industrial capital and R&D investment. Gotion High-tech (Qianrui Technology) announced an environmental assessment for its 10,000 mt annual sulfide solid-state electrolyte material project, with products subdivided into systems such as lithium phosphorus sulfur chlorine, lithium phosphorus sulfur chlorine bromine, and lithium phosphorus sulfur chlorine iodine, indicating that its technology has entered the mass production planning stage for specific formulations. Easpring Technology plans a 3,000 mt annual solid-state electrolyte production line (including 1,000 mt of sulfide) in Jintan, Changzhou. Enpower Solid-State announced the completion of debugging for its mt-level pilot line. Wanrun Co., Ltd. began construction of a lithium sulfide pilot line, while Yahua Group and Haichen Pharmaceutical are about to submit samples of their lithium sulfide products. Xingfa Group's 10,000 mt-level phosphorus pentasulfide (a key precursor) project is expected to commence production in July. These events outline the rapid formation of a complete industry chain from key raw materials (phosphorus pentasulfide, lithium sulfide) to electrolyte synthesis (sulfide solid-state electrolytes). BMW's prototype line collaboration with Solid Power and Enpower's strategic partnership with Enjie (with Enjie supplying sulfide electrolytes) indicate that international automakers and material giants are deeply committed to this technological route. Oxide Electrolytes: Represented by Qingtao Energy, its Phase II 15 GWh project (first phase 5 GWh) in Chengdu is steadily advancing, focusing on the oxide route. Easpring Technology's plans also include 2,000 mt/year oxide electrolyte capacity. Innovative Low-Cost Solutions: The lithium zirconium aluminum chlorine oxygen electrolyte developed by Ma Cheng's team at the University of Science and Technology of China claims a cost of less than 5% of mainstream sulfides and addresses the dependency on stacking pressure. If this achievement can successfully bridge the gap from laboratory to engineering, it may have a profound impact on the existing electrolyte technology landscape. Comprehensive Forecast: In 2026, sulfide electrolytes are expected to transition from kg-level to mt-level supply, accompanied by efforts to overcome industrialisation bottlenecks such as cost, consistency, and air stability. Oxide electrolytes will continue to expand their application in existing semi-solid-state batteries. The "ultimate winner" among electrolyte routes remains uncertain, but diversified technological competition will persist throughout the year. IV. Solid-State Battery Projects: Transitioning from Prototype Verification to the Eve of Mass Production, with Concurrent Investment and Capacity Building In January, the industry was clearly in the "eve of mass production," transitioning from technology R&D and prototype testing to the construction of pilot lines and mass production planning. In terms of capacity layout: Domestic planning is extensive. Top Technology (Tuo Yi Gu Neng) planned a 6-billion-yuan, 15 GWh solid-state battery project in Inner Mongolia; WELION New Energy, in addition to expanding its Huzhou base, signed a joint venture with a Shandong local state-owned enterprise for a 15 GWh project in Jiangning; Jinlongyu announced the construction of a 2 GWh mass production line in Shenzhen; Qingtao Energy's Chengdu Phase II and Jinyu New Energy's 1.2 GWh production line commenced operation, among others. The cumulative announced capacity plans are already considerable. However, a rational perspective is needed, as most of these are phased constructions. The actual operational capacity in 2026 is still expected to be primarily at the GWh level and concentrated in semi-solid-state batteries. In terms of technical verification: Automakers have become a key driving force. Dongfeng Motor completed the construction of its 350 Wh/kg solid-state battery pilot line and initiated winter calibration; Geely announced it will complete the offline installation of its self-developed all-solid-state battery pack in vehicles by 2026; Changan's "Golden Bell Cover" battery and Chery's "Rhino S" battery both announced vehicle installation verification for 2026; Hongqi's all-solid-state battery pack has already been installed in a real vehicle. Internationally, Samsung SDI developed a 9-series high-nickel semi-solid-state prototype; BMW, Toyota, and Volkswagen (via QuantumScape) all plan to advance pilot line construction or sample testing in 2026. In terms of capital markets: Financing activities are active. Enterprises in different segments of the industry chain, such as Yinshi New Material (sulfide electrolyte), Jinghe Energy (all-solid-state battery cells), and Ion Energy (polymer-based solid-state), secured financing ranging from tens of millions to hundreds of millions of yuan, indicating high capital attention on specific technical nodes within solid-state batteries. Outlook for 2026: The industry is expected to present a scenario of "a hundred flowers blooming" alongside "survival of the fittest." More companies will release high-energy-density (350-400 Wh/kg level) battery prototypes or engineering samples and validate their basic performance through rigorous tests like winter and summer calibration. The first batch of vehicle models based on semi-solid-state technology are expected to achieve small-batch deliveries (e.g., high-end models, commercial vehicles for specific scenarios). However, the industrialisation of all-solid-state batteries still faces a series of challenges, including interface impedance, cost, mass production processes, and equipment. 2026 will be a year for exposing these problems and focusing on breakthroughs. Some technical routes or companies may fall behind due to an inability to overcome engineering bottlenecks or funding shortages, and industry concentration is expected to begin increasing. V. Overseas Developments: Diversified Technology Pathways and Initial Commercialization Attempts Overseas R&D in solid-state batteries is progressing along multiple technology pathways, with commercial breakthroughs being attempted in specific sectors. US-based 24M's semi-solid electrode process focuses on the ESS sector, and the commissioning of its first industrial-scale production line holds demonstrative significance. Finland's Donut Lab claims that its all-solid-state battery (with an energy density of 400 Wh/kg) will be installed in electric motorcycles for mass production and delivery, marking the world's first publicly announced case of commercial installation of an all-solid-state battery. Although the scale is limited, its symbolic importance is significant. France's Blue Solutions, after accumulating experience in commercial vehicles, is shifting toward the passenger vehicle market and has established a pilot recycling line, reflecting a focus on the full life cycle. US-based Factorial Energy has passed third-party safety tests, and QuantumScape has delivered test samples to Audi, indicating steady progress in polymer-oxide composite systems and oxide thin-film systems. The establishment of Europe's Argylium aims to integrate resources to tackle the scaling of sulfide electrolytes, highlighting Europe's urgency in building a local solid-state battery supply chain. Overall, overseas companies are prioritizing the initial commercial application of solid-state batteries in niche sectors (such as ESS, two-wheelers, and medical devices), while leading automakers and battery giants are accelerating their deployment in the passenger vehicle segment. VI. Full-Year Forecast for 2026 2026 is expected to be a critical "validation year" and "differentiation year" in the industrialisation of solid-state batteries. Technologically, semi-solid-state battery technology is expected to mature, achieving scaled installation in high-end NEVs, eVTOLs, and specialized ESS applications, with energy densities generally reaching 350–400 Wh/kg, and low-temperature and fast-charging performance being validated. All-solid-state batteries will continue to break performance records at the laboratory level, but the focus of industrialisation will shift from "producing samples" to "solving mass-production engineering challenges," such as long-term stability of solid-solid interface contact, consistency and cost control of electrolytes at the 10kt scale, and the forming and packaging processes of all-solid-state battery cells. The safety of sulfide electrolytes, particularly during mass production, will receive unprecedented attention. Industrially, collaboration across the industry chain is expected to deepen, forming a pattern of tight integration between "materials-battery-automaker" (e.g., Enli-Enjie, BMW-Solid Power). Capacity construction will accelerate, but actual effective output will depend on the progress of technology validation and market demand. Capital market investment in solid-state batteries will become more rational, concentrating on enterprises with core materials technology, validated pilot production lines, and binding partnerships with clear customers. On the policy front, China's MIIT has identified all-solid-state batteries as a key technological breakthrough direction, and more industrial policies and standard-setting initiatives are anticipated. In the market, explosive growth of all-solid-state batteries is not expected. The mainstream trend will be the increasing penetration of semi-solid-state batteries in niche segments. News about vehicle installation validation of all-solid-state batteries will appear frequently, but large-scale mass production and market disruption are not anticipated until after 2027. The competition in 2026 will essentially be a comprehensive contest of technological pathway feasibility, engineering capability, and supply chain integration, leading to the industry's first round of consolidation. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!

The key is not “EV vs. ESS,” but “EV + ESS.” As demand drivers diverge by region, portfolio strategy and execution priorities must diverge as well. Looking at the global battery market through a “China vs. non-China” lens is more actionable than the common “Asia vs. global” split. China operates close to a self-contained ecosystem, supported by massive domestic demand and a highly concentrated supply chain. Outside China, however, market dynamics differ sharply across regions such as Europe and North America. Policy signals, the pace of infrastructure build-out, grid constraints, and customers’ cost sensitivity all vary, which means demand trajectories vary as well. Against this backdrop, one shift stands out: EVs continue to provide the foundation of battery demand, while ESS (Energy Storage Systems) is quickly growing into a second growth engine. This is not an argument against EVs. Rather, in non-China markets—where EV demand paths are increasingly sensitive to regional variables—the most natural strategy is to grow ESS alongside EVs to expand total addressable demand and stabilize utilization. Europe: EV Demand Is Supported by Infrastructure; Competition Converges on “Execution Metrics” Europe remains a region where policy architecture is relatively explicit: EV adoption is expected to move in parallel with infrastructure deployment. The EU’s alternative fuels infrastructure framework effectively pushes charging build-out along key corridors, reinforcing the “floor” under EV demand. On the supply side, the direction is also clear: Europe is strengthening local manufacturing and supply-chain capacity. As those signals translate into investment and capacity planning, the competitive landscape shifts away from brand narratives and toward execution metrics: price, lead times, supply reliability, and the ability to tailor portfolios to specific customer requirements. As execution becomes the focal point, product mix naturally broadens toward mass-market EV segments and ESS. In that context, the rising visibility of LFP (lithium iron phosphate) is best understood not as a simplistic “technology winner” story, but as a reflection of tightening requirements around cost, safety, and supply reliability—especially in applications where total cost of ownership and operational risk matter most. Europe’s strategic implication is straightforward: EV demand benefits from infrastructure and policy support, while performance increasingly depends on the ability to deliver cost competitiveness, lead-time discipline, and reliable supply—not only in high-performance segments, but also in the mass-market EV and ESS arenas. North America: EV Growth Faces Greater “Speed Volatility,” While ESS Gains Strength from Grid Demand North America differs from Europe in one key respect: EV adoption is more exposed to near- and mid-term “speed volatility” driven by policy signals, interest rates, and consumer affordability. In such an environment, corporate priorities often shift from “expansion at any cost” to utilization and capital recovery visibility. That is where ESS comes in—not as an EV substitute, but as a parallel demand pillar whose rationale is increasingly anchored in the power system itself. The U.S. power market is seeing structural demand growth pressures (including from large computing loads such as data centers), and as power demand rises, the value of flexibility resources rises with it. ESS directly addresses that need by supporting peak management, smoothing intermittency, and improving grid stability. Recent capacity planning trends in major U.S. markets further reinforce the point: storage additions are being scaled as a practical solution to operational constraints and variability. North America’s strategic implication is equally clear. EV remains the long-term growth pillar, but given short-term volatility, ESS needs to scale in tandem to stabilize utilization and improve the predictability of returns. The Post-2026 Inflection: Less About “What You Offer,” More About “How Well You Execute” As the EV + ESS structure solidifies, competition tends to become more quantitative and operational. In ESS in particular, customer requirements are typically explicit: Cost competitiveness (TCO-driven) Supply reliability (lead time, volume assurance, long-term sourcing stability) Safety Long-duration operational performance (cycle life/degradation) and quality consistency Accordingly, the key question from 2026 onward shifts from “Do you have LFP?” to whether you can execute across the full bundle: cost, quality, safety, cycle performance, and rapid ramp-up. Importantly, this is not just a cell-maker challenge. As product mix expands from EV-centric to EV + ESS, tighter requirements propagate across the value chain—materials, components, equipment, and process control—especially in terms of pricing pressure, supply stability, and quality variance management. Europe = Intensifying Execution Competition; North America = Policy/Rate Sensitivity As competition in Europe increasingly centers on localization and delivery, margin pressure may rise, making operational discipline—lead times, quality consistency, and service levels—more decisive than capacity alone. In North America, EV demand is more exposed to policy and rate-driven pace shifts, while rising grid demand and the need for flexibility continue to strengthen the investment case for ESS, leaving portfolio balance as a key determinant of outcomes. EV Is the Base, ESS Is the Expansion — Region-Specific Strategies Matter From 2026 onward, the growth frame in non-China markets increasingly shifts from an EV-only story to an EV + ESS story. Europe benefits from infrastructure-led support that stabilizes EV adoption but pushes competition toward execution metrics. North America faces greater EV speed volatility, while rising grid demand strengthens ESS as a parallel growth pillar. The strategic takeaway is simple: Keep EV as the foundation, but scale ESS alongside it to secure both growth and stability. In the next phase, performance is likely to be decided less by messaging and more by execution—cost, quality, safety, cycle life, and ramp-up capability.

From Q4 2025 to early 2026, the global ESS industry chain's upstream raw material market underwent significant price restructuring. The battery cell market is currently in an intense period of balancing between losses and delayed price transmission. As battery cell manufacturers generally raised their quotations, the central transaction price may continue to rise in the subsequent period. I. Upstream Raw Material Market: Lithium Chemicals Lead the Gains, Core Materials Surge Across the Board Reviewing the market performance from October 10, 2025, to January 26, 2026, the four key raw materials for ESS battery cells—cathode source (lithium carbonate), electrolyte, anode current collector (copper), and cathode current collector (aluminum)—all showed a unilateral upward trend. Among them, lithium chemicals and electrolyte exhibited explosive increases. As the core variable determining battery cell cost fluctuations, battery-grade lithium carbonate displayed the most aggressive price movement. According to SMM, the average price of SMM battery-grade lithium carbonate surged from 73,550 yuan/mt in October 2025 to 181,500 yuan/mt on January 26, 2026, an increase of 107,950 yuan/mt, up 146.77%. This doubling growth directly reshaped the BOM cost structure of battery cells. Driven by LiPF6 and solvent prices, the price of SMM electrolyte for ESS (for LFP ESS) rose from 17,550 yuan/mt to 34,850 yuan/mt, an increase of 17,300 yuan/mt, up 98.58%, nearly doubling, significantly raising auxiliary material cost pressure in cell manufacturing. Additionally, the steady rise in base metals further solidified the cost floor. SMM #1 copper cathode also continued to surge recently, climbing from 86,680 yuan/mt at the beginning of Q4 2025 to 102,435 yuan/mt recently, up 18.17% (+15,755 yuan/mt). During the same period, A00 aluminum prices mildly increased from 20,980 yuan/mt to 24,030 yuan/mt, up 14.54% (+3,050 yuan/mt). The steady rise in copper and aluminum prices further elevated the base cost level of current collectors and structural components, leading to a further increase in battery cell costs. II. Significant Surge in Theoretical Cost of 314Ah Battery Cells Driven by Cost Transmission Mechanism Based on the sharp fluctuations in raw material prices mentioned above, a theoretical cost model calculation was conducted for the mainstream 314Ah energy storage battery cells: Initial Cost (October 2025): When raw material prices were relatively low, the theoretical cost of 314Ah battery cells was approximately 0.2798 Yuan/Wh. Current Cost (January 2026): Driven directly by the doubling of lithium carbonate and electrolyte prices, coupled with increases in copper and aluminum prices, the current theoretical cost has risen to 0.3683 Yuan/Wh. In just three and a half months, the theoretical cost per Wh surged by 0.0885 Yuan/Wh, an increase of about 31.6%. This indicates that the rise in raw material costs is not a mild linear transmission but rather a step-like sharp increase. Although a qualitative change has occurred on the cost side, the spot transaction prices of ESS battery cells have shown significant lag. According to the SMM 314Ah ESS battery cell price index, during the same period, the index rose from 0.2995 Yuan/Wh to 0.3339 Yuan/Wh, revealing a substantial gap between price and cost. III. Cause Analysis The current index price (0.3339 yuan/Wh) is significantly lower than the theoretical cost (0.3683 yuan/Wh). This inverted phenomenon, where “flour is more expensive than bread,” may be attributed to the following reasons: 1. The market currently relies mainly on consuming previously accumulated low-cost raw material inventory to sustain deliveries, with some battery cell manufacturers maintaining market share at the expense of profits or even by operating at a loss. 2. Downstream (integrators/end-users): There is strong resistance to rapid price increases, with low acceptance, and the market is still in a phase of price negotiation and re-establishing price benchmarks. IV. Market Outlook At this stage, upstream (battery cell manufacturers): Faced with irreversible increases in raw material prices, battery cell manufacturers can no longer maintain their original pricing systems. Market quotations have already reacted proactively, with some prices raised to around 0.35–0.39 yuan/Wh in an attempt to restore profit margins. Looking ahead, as low-cost inventory is gradually cleared, cost pressures will become more apparent. With the depletion of previously accumulated low-cost lithium carbonate inventory, battery cells produced in the new cycle must bear the current high raw material costs. The price center of the 0.3339 yuan/Wh index is expected to shift upward. The current higher quotation range reflects not only the break-even demands of battery cell manufacturers but also serves as a defense against future raw material uncertainties. As downstream projects commence and rigid delivery requirements approach, the industry chain will be compelled to increase its acceptance of higher prices. The price of 314Ah ESS battery cells may conclude its delayed adjustment phase and enter a round of catch-up increases.

SMM January 22 News: Highlights: This week (January 16-22, 2026), the solid-state battery industry saw a flurry of developments: on one hand, there was a capital frenzy with billions of yuan pouring into capacity blueprints; on the other hand, the technical routes have yet to converge, and the path to industrialisation is fraught with uncertainties. Large enterprises such as Gotion High-tech are making substantial moves to secure their positions. Preface: Weekly price situation, prices for traditional lithium battery materials used in solid-state batteries increased to varying degrees due to the rise in lithium chemicals prices, while silicon carbon anode prices declined. The price of lithium sulfide, a dedicated material for solid-state batteries, rose steadily due to robust demand. Prices for sulphide and oxide electrolytes decreased. I. New Projects: New Investments in Various Locations Projects disclosed over the past week have seen planned total investments easily exceed 20 billion yuan, with new planned capacities surpassing 20Gwh. Leading battery giants: Gotion High-tech (Qianrui Technology) plans to produce 10kt of sulphide solid electrolyte material annually, and CALB invested 120 million yuan to enhance its solid-state battery pilot production capacity to 0.2GWh, aiming to strengthen its technological moat. Top Science has invested 6 billion yuan in Inner Mongolia to build a 15GWh production line, while Baili Technology established a subsidiary to set up a solid-state battery material production system, entering the race from the equipment end. Jinghe Energy, Solid State Ionic Energy, and others have successively secured tens of millions to hundreds of millions of yuan in financing, focusing on specific technology routes such as sulphides and polymers, attempting to disrupt the landscape through innovation. II. Technical Routes: Three Paths in Parallel, Oxides Temporarily Leading in "Mass Production" Oxide Route (Pioneers in Mass Production): Represented by Qingtao Energy, whose Chengdu Phase II project is progressing smoothly, with trial production expected by the end of 2026. This route, with its high compatibility with existing liquid battery processes and better safety, currently leads in large-scale mass production. Easpring Technology's 3,000-ton production line in Jintan also covers both oxides and sulphides, reflecting a pragmatic approach to industrialisation. Sulphide Route (Performance Disruptor): Gotion High-tech's 10kt plan and Firm-Lithium's R&D efforts represent a direct assault on the challenges of sulphide mass production. Enpower and SEMCORP's collaboration aims to accelerate breakthroughs through industry chain synergy (providing sulphide electrolytes). Polymer Route (Breakthrough in Specific Scenarios): Represented by Solid State Ionic Energy (Wuhan) and UK-based Ilika, the former has secured hundreds of millions of yuan in financing to build production lines, while the latter has won medical battery orders with its Stereax technology, achieving commercialization in high-value, small-volume medical devices, demonstrating the possibility of differentiated survival. III. Supply Chain: Collaboration as the Mainstream Deep Integration of Materials and Batteries: Farasis' cooperation with BASF Shanshan has delved into jointly overcoming the process bottlenecks in the large-scale preparation of solid electrolytes. This is no longer a simple buyer-seller relationship but a joint R&D effort to define the next generation of material standards. Cross-Technical Integration: The collaboration between Enpower (batteries) and SEMCORP (separator) is highly symbolic. The traditional separator giant is extending its core capabilities in film processing to provide "semi-solid separators and all-solid sulphide electrolytes," attempting to reposition its core value in the industry transformation. Comprehensive Patent Layout: GEM has applied for a patent on single-crystal cobalt-free lithium-rich manganese-based cathode materials, specifically noting its suitability for solid-state batteries. This indicates that from upstream material giants to midstream battery manufacturers, the battle for core intellectual property in the solid-state era has fully commenced. IV. Commercialization: Installation in Vehicles by Chery Exeed and Others Solid-state batteries still require extensive, long-term vehicle-grade validation for their cycle life under extreme temperatures, power characteristics, and long-term interface stability. The installation plans (2026) by automakers such as Chery Exeed will be the crucial first round of major tests. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!

SMM, Jan. 21: According to customs data, China's lead-acid battery exports totaled 17.2406 million units in December 2025, up 9.28% MoM but down 33.86% YoY. Full-year 2025 exports reached 219 million units, a decrease of 12.79% YoY.Imports of lead-acid batteries stood at 591,600 units in December 2025, rising 24.38% MoM and surging 60.52% YoY. Cumulative imports for 2025 were 5.4926 million units, down 2.09% YoY. Since 2024, sharp fluctuations in lead prices domestically and overseas have led to significant price spreads (with domestic prices substantially higher than overseas), exceeding Yuan 3,000/mt during peak periods. This directly increased production costs for lead-acid batteries, reducing the competitiveness of Chinese enterprises in the international market and causing a substantial decline in overseas orders. Although the price gap narrowed somewhat in 2025, factors such as U.S. “reciprocal tariffs” and anti-dumping duties imposed by Middle Eastern countries against China contributed to an overall decline in lead-acid battery exports, with other lead-acid battery categories recording the largest drop at -16.91%. Among major export destinations, 11 countries saw reduced imports from China. India, the largest export market, recorded a 33.39% YoY decrease; Malaysia and Singapore fell 16.82% and 43.49% YoY, respectively; exports to the U.S. dropped sharply by 48.59%. Looking ahead to 2026, given divergent lead inventory levels (higher overseas, lower domestically) and overcapacity in China’s lead smelting industry, the room for price spread improvement is expected to remain limited in the near term. Meanwhile, increased construction of overseas plants by Chinese lead-acid battery manufacturers, particularly in Southeast Asia, will boost local production and may further reduce direct exports from China. Considering these factors and potential policy adjustments, lead-acid battery exports from China are projected to continue declining in 2026. (The above information is based on market collection and comprehensive evaluation by the SMM research team. The information provided herein is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions prudently and not use it to replace their own independent judgment. Any decisions made by clients are unrelated to SMM.)

Lithium carbonate, as a core raw material in the lithium battery industry chain, has seen recent price fluctuations driving up lithium battery production costs, while also significantly boosting market attention for the sodium-ion battery (hereinafter referred to as "sodium-ion battery") industry, which was previously in a preparatory phase. Sodium-ion battery enterprises generally report a notable increase in customer inquiries and collaborations recently, with many traditional top-tier lithium battery enterprises proactively engaging in the upstream material supply chain for sodium-ion batteries. The market activity for sodium-ion batteries has experienced a phased recovery. However, beneath this enthusiasm, the sodium-ion battery industry still faces multiple challenges, including capacity bottlenecks, technological breakthroughs yet to be achieved, and obstacles in cost reduction. The industrialization process still needs to overcome several hurdles. I. Rising Lithium Carbonate Prices Act as a Catalyst, Sustained Heating Up of Sodium-Ion Battery Market Demand The lithium battery industry has developed for many years with an extremely high reliance on lithium carbonate, and the volatile price trends of lithium carbonate have always been a key factor constraining the cost stability of lithium batteries. Since H2 2025, factors such as equipment maintenance and production restrictions or halts for maintenance at upstream lithium chemical enterprises have led to a contraction in lithium carbonate supply. Coupled with structurally robust demand from downstream energy storage systems (ESS) and power batteries, this has driven a rapid rebound in lithium carbonate prices by the end of the year. Against this backdrop, sodium-ion batteries, as an important complementary technological pathway to lithium batteries, have once again highlighted their advantages: abundant sodium resources in the Earth's crust and low cost. This has made them an important choice for enterprises to hedge against lithium battery cost pressures. The heating up of market demand is directly reflected in the increased activity of customer inquiries and collaboration engagements. Sodium-ion battery material enterprises reveal that recently, not only have inquiries from small and medium-sized ESS enterprises and low-speed EV manufacturers increased, but several traditional large lithium battery manufacturers have also proactively sought collaborations. The core objective is to secure stable supplies of key materials such as sodium-ion battery cathodes and anodes. This trend is particularly evident in the strategies of top-tier enterprises, whose entry not only validates the market value of sodium-ion batteries but is also expected to accelerate the industry's scaling process. II. Industry Status: Amid Boosted Demand, Capacity and Technological Bottlenecks in Multiple Segments Become Prominent Despite continuously increasing market attention, the sodium-ion battery industry is currently still in the early stages of industrialization. Core segments including cathodes, anodes, and battery cells face significant capacity bottlenecks and technological challenges, and have not yet developed supply capabilities that match the growth in demand. (I) Cathode Materials: Clear Mainstream Pathways but Limited Capacity, Expansion Wave Is Expected to Begin Currently, sodium-ion battery cathode materials have formed three main technical pathways: polyanion (represented by NFPP), layered oxide, and Prussian blue (white). Among these, NFPP has established a dominant position due to its balanced performance and cost potential, achieving a transition from small- to medium-scale trial production to 10kt-level mass production lines. However, in terms of capacity scale, the actual utilizable capacity of domestic sodium-ion battery cathode materials remains relatively limited, with the overall capacity not exceeding 100,000 mt, making it difficult to meet potential large-scale demand. Faced with rising market demand, cathode material enterprises have planned capacity expansions. The industry generally believes that large-scale capacity is key to securing stable, high-volume battery orders, making 2026 a concentrated period for sodium-ion battery cathode capacity expansion. Notably, the current mass production price of NFPP remains higher than industry expectations, with bulk transaction prices concentrated in the range of 20,000-25,000 yuan/mt, still some distance from the target of achieving costs below 20,000 yuan/mt. Recent price increases in the iron phosphate market have further intensified cost reduction pressure on NFPP—driven by rising prices of raw materials such as industrial-grade MAP, phosphoric acid, and ferrous sulphate, iron phosphate prices have increased by approximately 10% recently. However, sodium-ion battery cathode enterprises have significantly lower procurement volumes compared to LFP enterprises, resulting in weak bargaining power within the industry chain and difficulty in passing on raw material cost increases, adding another obstacle to NFPP's cost reduction progress. (II) Hard Carbon Anode: Significant Capacity Gap, Technical Routes Need Optimization Hard carbon material is currently the only anode option for commercial sodium-ion battery applications, but its capacity bottleneck is more pronounced than that of the cathode. Although hard carbon production is expected to achieve over 90% MoM growth in 2025, high-grade, stably producible capacity remains tight, struggling to keep pace with cathode material growth. Currently, the actual utilizable hard carbon anode capacity in China also does not exceed 100,000 mt, and due to factors such as unstable raw material costs and complex production processes, capacity release is slow. On the technical front, the process route for hard carbon anodes is not yet fully established. The mainstream coconut shell route faces sustainability pressure regarding raw materials, while alternative routes such as coal-based, bamboo, and biomass still require further improvement in product performance. The uncertainty in technical routes not only affects the efficiency of capacity release but also poses challenges for downstream battery cell manufacturers in product matching, becoming a key shortcoming constraining the development of the sodium-ion battery industry. (III) Battery Cell Segment: Low Capacity Scale, Enterprises Rely on Lithium Battery Business to Balance Operations The battery cell is the core carrier for sodium-ion battery industrialisation, but its capacity scale remains relatively low. Currently, actual sodium-ion battery cell capacity in China is less than 10 GWh, far below the capacity scale of lithium batteries, which often reaches hundreds of GWh.Due to factors such as limited sodium-ion battery order sizes and insufficient profitability, some sodium-ion battery cell manufacturers, while ensuring the delivery of sodium-ion battery orders, have to take on lithium battery orders to maintain normal company operations. From the market application perspective, the current shipment focus of sodium-ion battery cells is concentrated in niche segments such as electric two-wheelers and start-stop power supplies, while commercialization progress in mainstream areas like ESS and NEVs has fallen short of expectations. This is partly due to the fact that performance metrics such as energy density and cycle life of sodium-ion batteries still require improvement, and it is also related to the lack of absolute competitiveness in sodium-ion battery cell prices—taking the 280Ah prismatic ESS battery cell as an example, sodium-ion battery cell prices remain significantly higher than lithium battery cells, making it difficult to establish a substitution advantage in the large-scale ESS market. III. Summary and Outlook: Opportunities and Challenges Coexist, 2026 Becomes a Critical Period for Commercialization Overall, the recent fluctuations in lithium carbonate prices have presented a rare market opportunity for the sodium-ion battery industry. The entry of traditional lithium battery giants has further heightened industry attention, accelerating the transition of sodium-ion batteries from "technical verification" to "market verification." However, from the current industry perspective, the sodium-ion battery sector still faces multiple challenges: a significant capacity gap in core materials, immature technical routes for hard carbon anodes; cost reduction obstacles for NFPP cathodes, insufficient price competitiveness of battery cells; application scenarios remain concentrated in niche areas, with slow penetration into mainstream markets. Looking ahead to 2026, with the expansion of cathode material production and continuous optimization of hard carbon anode technology, the scale effect of the sodium-ion battery industry chain is expected to gradually emerge, and costs across various segments may see phased declines. The core logic of industry development will shift from "capacity construction" to "cost competition" and "market verification." The launch of ESS projects, exploration of overseas low-temperature markets, and application of lithium-sodium synergistic technologies may become key directions for breakthroughs in sodium-ion battery commercialization. It is important to note that sodium-ion batteries are not substitutes for lithium batteries but important supplements. The healthy development of the industry will still rely on technological innovation to break through performance bottlenecks, reduce costs through scaled production, and ultimately build core competitiveness in differentiated scenarios.

SMM January 19, 2026 - On January 16, 2026, the Ministry of Industry and Information Technology, together with the National Development and Reform Commission (NDRC), the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Commerce, and the State Administration for Market Regulation, jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles (NEVs)." This new management measure is a joint departmental regulation with mandatory legal force, fundamentally changing the previous situation where guidance documents lacked sufficient binding power. The main content of the new management measure includes the following points: I. Establishment of Production Codes for NEV Power Batteries. It will establish a "digital ID card" system for NEV power batteries, enabling full life cycle traceability management through unique codes, and achieving full-process monitoring from production to retirement and recycling. Enterprises producing or importing power batteries for NEVs sold and used domestically (hereinafter collectively referred to as power battery enterprises) must code their batteries in accordance with the "Rules for Coding of Automotive Traction Batteries" (GB/T 34014). II. Determination of the Producer Responsibility System. The new management measure requires that power battery enterprises assume recycling responsibility for the power batteries they produce or import for domestic sale and use in NEVs (excluding those sold to NEV producers), and fulfill the following recycling obligations: sales regions for batteries must include recycling service outlets matching sales volumes, providing waste power battery recycling services; update recycling outlet addresses and recycling guidance information in prominent locations; and must not refuse to accept waste power batteries that should be recycled by the power battery enterprise, when transferred by battery swapping service enterprises, motor vehicle maintenance enterprises, etc. Concurrently, power battery enterprises and NEV producers are encouraged to establish recycling service outlets in accordance with the "Management Specification for Recycling of Traction Batteries for Vehicles - Part 2: Recycling Service Outlets" (GB/T 38698.2). III. Real-time Registration on the Information Platform. The new management measure requires that end-of-life vehicle recycling and dismantling enterprises report vehicle scrapping information and warehouse withdrawal information of dismantled waste power batteries according to the rules of the "Implementation Rules for the Management of End-of-life Vehicle Recycling." Furthermore, at various stages such as product certification, customs clearance verification, repair, battery swapping, and warehousing, the following information must be reported to the relevant platform. For example: NEV producers and enterprises importing NEVs for domestic sale must, within six months of obtaining the NEV product access announcement or mandatory product certification for NEVs, report technical information such as the disassembly and necessary dismantling of NEV power batteries. Additionally, the new management measure also specifies clear requirements for various parties from three aspects: I. Recycling Enterprises (including upstream grinding enterprises and downstream hydrometallurgical enterprises). They must possess compliant procedures (environmental impact assessment, pollutant discharge permits, etc.), operate normatively by being included in the "white list," and strictly implement technical standards. II. Producers (battery cell manufacturers/automakers) must assume primary responsibility for recycling, establishing their own or entrusting a recycling network, conducting eco-design, and cooperating with full life cycle information traceability. III. Consumers are required to fulfill the entire chain of responsibilities from procurement to retirement to supervision: when purchasing, do not buy lithium battery products of unknown origin (especially those for e-bikes); when retiring, deliver the vehicle along with the battery to a legitimate recycling enterprise; when supervising, actively report illegal recycling and dismantling activities. SMM believes that this policy innovation marks China's entry into a new phase of "strong regulation, full traceability, and strict law enforcement" in the management of power battery recycling. Through legal compulsion, digital technology, and inter-ministerial collaboration, it thoroughly conducts environmental traceability and effective utilization of scrap lithium batteries. As scrap batteries gradually enter an era of large-scale social retirement, this can effectively improve the utilization rate of batteries and reduce potential environmental risks. SMM New Energy Research Team Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lv Yanlin 021-20707875

SMM January 12 News: Key Points: LiPure Energy is a startup focused on polymer + silicon carbon anode solid-state batteries. Its first-generation products, ranging from 0.5Ah to 50Ah, have passed extreme safety tests and obtained authoritative certification. The company is advancing capacity construction, with the 1GWh ESS battery project in Jiangxi having entered the environmental impact assessment stage. Through bank credit, equipment supplier partnerships, and pilot projects, the company is accelerating its transition from R&D to market application, initially targeting the e-bike battery swapping and ESS scenarios. Introduction: Pure Lithium New Energy is an enterprise following the polymer solid-state battery route and is a startup. It has solid-state battery industrial layouts in Beijing, Henan, and Jiangxi. I. LiPure Energy's Technical Route: Polymer + Silicon Carbon Solid-State Battery Route: Adopts a polymer high-capacity silicon carbon composite anode system. The "high energy density" advantage will be achieved through the combined path of "high nickelization of the cathode + silicon carbonization of the anode + weight reduction via solid electrolyte." II. Battery Introduction: First-Generation Products Capacity Covering 0.5Ah to 50Ah LiPure Energy's business narrative focuses on "solutions" rather than specific battery cell models, reflecting its market-driven approach. Product Forms: Targeting two major scenarios – "micro power" (e.g., light EVs, drones, special-purpose vehicles) and "ESS" (e.g., household ESS, communication backup power) – the company is expected to provide products at different levels, from individual cells to modules, battery packs, and even system integration. Its cell forms may include prismatic stacked or pouch types to meet the spatial requirements of different applications. LiPure Energy's all-solid-state batteries withstood extreme testing. After placing a deliberately breached battery in a 120°C vacuum drying oven at constant temperature for 6 hours, the measured mass loss rate was only 0.023%. The advantages of LiPure Energy's all-solid-state batteries are: First, a "qualitative leap" in safety level, using non-flammable solid electrolyte, completely eliminating the risks of electrolyte leakage and thermal runaway. Second, a "multi-fold improvement" in cycle life, with the cycle life of a single battery exceeding 2,000 cycles, significantly increasing asset utilization and enhancing industrial sustainability. Third, a "significant expansion" in regional markets, as the battery can operate stably long-term at temperatures up to 85°C, suitable for high-temperature and high-humidity regional scenarios. Fourth, a foundational guarantee for battery recycling and reuse, with the recycling rate for all-solid-state battery packs and swapping cabinet bodies exceeding 90%, providing a solid foundation for a green, circular development industrial system. The 50Ah all-solid-state cell, with its electrolyte-free design, completely eliminates the risk of combustion and explosion, and has a cycle life greater than 10,000 cycles. III. Planned Capacity: 0.2GWh + 1GWh Henan Lankao: A production site was established in August 2023 at the SPIC New Energy Industrial Park in Lankao County, focusing on all-solid-state lithium battery technology. In August 2024, China's first all-solid-state lithium battery mass production line was completed there, and in October of the same year, mass production of the 50Ah all-solid-state cell was achieved, marking a new stage of mass production for China in this field. The project's annual capacity reaches 200MWh. At full capacity, it can produce thousands of batteries daily, with expected annual revenue of approximately 200 million yuan. Jiangxi Hukou: A production construction project for solid-state ESS batteries with an annual capacity of 1GWh. The environmental impact assessment was announced on December 2, 2025. The project investment is 150 million yuan, with a construction period of 12 months. Vehicle Installation Plan: R&D work on all-solid-state power batteries for the automotive sector is advancing, expected to enter the small-scale trial stage in 2026 and proceed with vehicle validation in 2027. IV. Patent Overview Hukou LiPure Energy Co., Ltd. was established in 2024 and is a wholly-owned subsidiary of Beijing LiPure Energy Technology Co., Ltd. Patent Layout Will Focus On: Core Materials + Key Processes + Structural Design + Application Systems Core Materials: Solid-state electrolyte formulations (polymer matrix, lithium chemicals, inorganic fillers), modification of high-performance cathode and anode materials. Key Processes: Preparation technology for ultra-thin solid-state electrolyte membranes, integration processes for electrode and electrolyte layers (such as coating, stacking, hot pressing). Structural Design: Unique battery cell structural design to improve interface contact and stress distribution. Application and System: Module design, thermal management system, battery management system (BMS) algorithms, etc. V. Company Updates [Solid-State Battery: Chun Lithium New Energy Officially Signed Credit Agreement with China Merchants Bank] On January 3, 2024, solid-state battery enterprise Chun Lithium New Energy officially signed a credit agreement with China Merchants Bank. The credit support provided by China Merchants Bank will inject strong momentum into Chun Lithium New Energy's R&D in solid-state battery technology, capacity expansion, and market promotion. [Solid-State Battery: Chun Lithium New Energy's 50Ah All-Solid-State Battery Cell and Pack Made a Splendid Debut] On March 27, 2025, the 2025 Zhongguancun Forum, themed "New Quality Productive Forces and Global Scientific and Technological Cooperation," grandly opened. At this global feast of technological innovation, Chun Lithium New Energy, a domestic enterprise that has mass-produced all-solid-state batteries, made a splendid debut with its independently developed 50Ah all-solid-state battery cell and Pack. [Solid-State Battery: KanHoo and Chun Lithium New Energy Formed a Strategic Cooperation] On June 27, 2025, KanHoo (300340) stated that the company officially signed a strategic cooperation agreement with Beijing Chun Lithium New Energy, engaging in in-depth collaboration in various areas such as production equipment, cathode materials, and ESS market promotion in the field of all-solid-state lithium-ion batteries. [Solid-State Battery: Chun Lithium New Energy Launched the "All-Solid-State Battery E-Bike Battery Swapping Pilot Project" in Beijing Yizhuang] On June 27, 2025, Chun Lithium New Energy held the launch ceremony for the "All-Solid-State Battery E-Bike Battery Swapping Pilot Project" in Beijing Yizhuang, officially releasing its first-generation all-solid-state battery product solution. CEO Yang Fan stated that Chun Lithium's all-solid-state battery products will first be applied in e-bike battery swapping and ESS scenarios. [Solid-State Battery: Chun Lithium Solid-State Battery Product LFP102159265 Received Product Certification] On November 7, 2025, the solid-state battery product LFP102159265, developed by Beijing Chun Lithium New Energy Technology Co., Ltd., based on innovative solid-state electrolyte materials and battery structural design, performed excellently in the first authoritative evaluation of solid-state batteries organized by the Key Laboratory of Green Battery Evaluation and Analysis of the Ministry of Industry and Information Technology (relying on the construction of the CES Laboratory), successfully passed all test items, and received product certification. Overcharge Safety: Constant voltage overcharge above 4V for 7 hours, no fire, no explosion; Thermal Abuse Safety: 140°C hot box for 30 minutes, no fire, no explosion; Nail Penetration Safety: 5mm steel nail penetration maintained for 1 hour, no fire, no explosion. [Solid-State Battery: Pure Lithium 1 GWh Solid-State ESS Battery Project in Environmental Impact Assessment Stage] On December 2, 2025, the People's Government of Hukou County, Jiujiang City, Jiangxi Province, published a notice of intended acceptance for the environmental impact statement of the Hukou LiPure Energy Co., Ltd. Annual Production of 1 GWh Solid-State ESS Battery Construction Project. The Annual Production of 1 GWh Solid-State ESS Battery Construction Project has an investment of 150 million yuan and a construction period of 12 months. The project will utilize a leased, already-constructed standard factory building located on the north side of Haishan Erzhi Road in the Haishan Technology Innovation Test Zone of the Hukou County High-Tech Industrial Park, Jiujiang City, Jiangxi Province, for production. The project covers an area of 68,092.25 m². The project components include the main part of the project, auxiliary works, storage and transportation facilities, utilities, and environmental protection works. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!

SMM January 12 News: Key Points: LiPure Energy is a startup focused on polymer + silicon carbon anode solid-state batteries. Its first-generation products, ranging from 0.5Ah to 50Ah, have passed extreme safety tests and obtained authoritative certification. The company is advancing capacity construction, with the 1GWh ESS battery project in Jiangxi having entered the environmental impact assessment stage. Through bank credit, equipment supplier partnerships, and pilot projects, the company is accelerating its transition from R&D to market application, initially targeting the e-bike battery swapping and ESS scenarios. Preface: On January 10, 2026, Heyuan Lithium Innovation's Huai'an solid-state battery manufacturing base commenced production and held a new product launch and delivery event. As the first dedicated mass-production base for solid-state batteries in China, the Huai'an manufacturing base was officially put into use in Q4 2025. Specifications for the "Liuhe Battery" series: Light-duty power version: 250–300 Wh/kg, 1,500 cycles, 100% pass rate in 5 mm nail penetration test; intelligent low-altitude power version: 15C maximum instantaneous discharge, wide operating temperature range of -20 to 55°C; embodied AI solid-state battery: 280–360 Wh/kg; automotive-grade version: 360 Wh/kg, 1,000 cycles. This article provides an overview of its solid-state battery layout. I. Technology Roadmap: Heyuan Lithium Innovation primarily focuses on the oxide solid-state electrolyte pathway in its technology route selection. II. Battery Introduction: The "Liuhe" Product Matrix Based on Six Original Technologies Heyuan Lithium Innovation has successfully established a solid-state battery product matrix covering diverse application scenarios. Leveraging six original technologies, including ultra-high modulus self-healing gel and high-entropy zero-dimensional solid-state electrolyte, combined with proprietary processes and equipment innovations, the company has developed a high-performance solid-state battery technology system. In January 2026, the company officially launched the new "Liuhe Battery" brand, which emphasizes achieving "intelligent balance" and scenario-based customization across six core dimensions—energy density, safety, cycle life, C-rate performance, temperature adaptability, and cost—rather than pursuing extreme performance in any single parameter. Specifications for the "Liuhe Battery" series: Light-duty power version: 250–300 Wh/kg, 1,500 cycles, 100% pass rate in 5 mm nail penetration test; intelligent low-altitude power version: 15C maximum instantaneous discharge, wide operating temperature range of -20 to 55°C; embodied AI solid-state battery: 280–360 Wh/kg; automotive-grade version: 360 Wh/kg, 1,000 cycles. III. Planned Capacity: Multi-site Layout, GWh-level Capacity Rapidly Being Implemented 1. R&D and Pilot System: Suzhou Headquarters: Houses a solid-state battery R&D laboratory and a 100 MWh solid-state battery pilot production line, serving as the core facility for material and process development and validation. Wuhan R&D Center: Established jointly with China University of Geosciences (Wuhan) as a joint R&D center for new-type battery materials, focusing on key materials such as solid-state electrolytes. Shenzhen R&D Center: Possesses a 15,000 m² battery system R&D center, focusing on module, BMS, and battery pack system development, providing full-stack solutions. 2. GWh-Level Mass Production Base: Huai'an Base (Operational): Status: The nation's first base dedicated purely to mass-producing solid-state batteries, which was put into use in Q4 2025. Scale: Total project investment of 5 billion yuan, with a total planned capacity of 10 GWh. Upon reaching full production, the estimated annual output value is 8 billion yuan. Progress: Phase I capacity has been constructed and put into operation, integrating R&D, production, and testing, committed to achieving stable large-scale delivery. Xiantao Base (Under Construction): Scale: Total project investment of 15 billion yuan, with a total planned capacity of 20 GWh. Plan: Construction commenced in December 2024, divided into three phases, with the first phase investment of 3.75 billion yuan. IV. Company Profile and Patent Status Heyuan Lithium Innovation was established in January 2023, headquartered in Suzhou Industrial Park. The core team has nearly 20 years of experience in solid-state battery technology development and industrialisation, having led the completion of the world's first vehicle-grade solid-state battery small-batch demonstration operation project. The company also obtained the first solid-state battery vehicle approval from the MIIT, possessing full value chain delivery capabilities from materials and battery cells to BMS and PACK. The team comprises nearly 100 members, with master's and doctoral degree holders accounting for 66%. The team's background is diverse, covering scientists, engineers, and process equipment experts. Patent and Technology Status: Includes ultra-high modulus self-healing gel, high-entropy zero-dimensional solid-state electrolyte, among others, with "independently developed solid-state lithium-ion electrolyte material systems." Deepening Industry-Academia-Research Collaboration: The company continues to conduct forward-looking and fundamental research with several renowned universities such as Harbin Institute of Technology, Beijing Institute of Technology, and China University of Geosciences (Wuhan), accelerating the transformation of technological achievements. Although the search results did not provide precise patent numbers, the company's technology layout and R&D activities indicate it is building a solid patent barrier. V. Financing and Cooperation: Supported by Industrial and State Capital, Enhancing Ecosystem Synergy In April 2023, an angel round raised tens of millions of yuan, with Yongxin Fangzhou and others supporting the company's startup phase and R&D system establishment. In 2025, during the Pre-A round of approximately 100 million yuan, Ruitai New Energy Materials (a publicly listed firm in lithium battery materials), Tianhong Laser (an intelligent equipment provider), Huaian State-Owned Capital (a financial development group and famous city holding entity), Rongyu Capital, and others formed deep partnerships between industrial capital and local state-owned assets, bringing comprehensive empowerment in materials, equipment, policies, and orders. Upstream Materials and Equipment: Investors Ruitai New Energy Materials and Tianhong Laser will provide strong support in supply chain collaboration, material development, and customized production line equipment. Downstream Customers and Market: The company has signed long-term strategic cooperation agreements and multi-million-yuan procurement orders with terminal customers such as Jiushi Intelligent (unmanned vehicles) and Xingluo Intelligent (drones), and has delivered the first batch of mass-produced products to Jiushi Intelligent. Additionally, collaborations have been established with customers like Golden Crown Intelligent Technology (construction robots). Local Industrial Ecosystem: The investment from Huaian State-Owned Capital signifies that Heyuan Lithium Creation has become a "chain leader" enterprise in building a local solid-state battery industrial cluster, and will receive continuous industrial policy and ecosystem resource support. VI. Company Updates: Base Commencement and Product Delivery Mark a New Stage of Commercialization Recently, Heyuan Lithium Creation's activities have highlighted milestone breakthroughs in its industrialization process: Official Commencement of the Huaian Base and Launch of the "Liuhe Battery" (January 10, 2026): The company held a grand ceremony to celebrate the commencement of the nation's first dedicated mass-production solid-state battery base and simultaneously launched the new "Liuhe" series of solid-state battery products, clarifying its product philosophy of smart balance for diverse scenarios. Delivery of the First Batch of Mass-Produced Products: During the commencement ceremony, Heyuan Lithium Creation delivered the first batch of new-generation solid-state battery products to strategic customer Jiushi Intelligent, marking a substantial step in its commercial implementation. Previously, the company had begun batch deliveries of solid-state batteries for drones to customers in June 2025. Commencement of Construction at the Xiantao Base (December 2024): The Xiantao, Hubei solid-state battery smart factory project, with a total investment of 15 billion yuan and a capacity of 20 GWh, was officially signed and commenced, showcasing the company's significant future capacity expansion blueprint. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!

SMM January 12 News: Key Points: Overseas solid-state batteries show a pattern with sulphides as the mainstream, oxides targeting high-end applications, and polymers exploring alternative paths. Japanese and South Korean enterprises have the most mature technology, with Toyota, Samsung, and SK On planning mass production from 2026-2029, though this will likely be delayed; US companies are capital-driven but lack clear commercialization pathways; Europe focuses on high-end applications. The core bottlenecks lie in interface impedance degradation, low-temperature performance, and mass production costs, with the final battle for technological routes expected after 2030. The global solid-state battery race has moved beyond the laboratory concept validation stage, entering a critical window of "engineering-industrialisation." From the layout of nearly 30 overseas enterprises, the industry shows three major characteristics: diversified technological routes, regional factions, and highly convergent mass production timelines. Originally, the first batch of commercial products was expected to land between 2026-2029, but due to technical maturity and cost control, this is now projected to be delayed until 2030-2035. I. Technological Routes: Sulphides Take Center Stage, Oxides Target High-End, Polymers Explore New Scenarios Overseas enterprises clearly present a pattern of "sulphides as the mainstream, oxides for high-end, and polymers finding their niche." Sulphide-based routes, represented by Toyota, Samsung SDI, LG Chem, Nissan, and Honda, account for over 60%. This route has the highest ionic conductivity, close to that of liquid electrolytes (10⁻³ S/cm), supporting energy densities exceeding 500Wh/kg. However, it suffers from poor chemical stability, requires an inert atmosphere for production, and faces challenges in controlling interface impedance. In October 2025, Toyota obtained production approval in Japan for its sulphide-based solid-state battery, which boasts an energy density of 500Wh/kg, 2000 cycles, and a driving range of 1200km after a 10-minute charge. It is set to be used in Lexus flagship models in 2027, leading globally in technological maturity. US companies like Factorial Energy and Solid Power also focus on sulphides. The former, in collaboration with Mercedes, delivered Solstice batteries with a capacity of 400Ah and 2000 cycles, while the latter provided A-samples to BMW for vehicle testing. The core challenge for the sulphide camp lies in stringent mass production processes—Samsung SDI requires an oxygen-free environment for packaging, LG Chem focuses on polymer semi-solid state transition before 2026, and although SK On's Tennessee pilot plant is scheduled for mass production in 2029, cost reduction remains difficult. Oxide-based routes, led by QuantumScape, ProLogium Technology, and Rimac Technology, have the highest technical barriers but offer the best safety and longevity. QuantumScape's ceramic separator technology achieves a volumetric energy density of 1000Wh/L and a lifespan of 4 million km, with deep ties to Volkswagen and Porsche. Small-scale production of QSE-5B is planned for 2025, but the mass production timeline is unclear, and technical risks remain. ProLogium Technology uses a 3D ceramic structure to avoid high-temperature sintering, achieving an energy density of 260Wh/kg in collaboration with Rimac, with plans to use it in high-performance EVs by 2027. The advantage of oxides is their wide electrochemical window (0-6V) suitable for high-voltage cathodes, but they suffer from high grain boundary impedance and brittleness, requiring interface modification layers, which limit large-scale application. Polymer-based routes, represented by France's Bolloré, Blue Solutions, and US-based Ionic Materials, seek differentiated markets through thin-film and flexible designs. Bolloré has already commercialized the Bluecar, with lithium-metal polymer batteries offering an energy density of 380Wh/L and a 15-year lifespan, but they require operating temperatures of 60-80°C, limiting their application. Blue Solutions plans to launch a fourth-generation product with an energy density of 450Wh/kg by 2030, collaborating with PTL on material equipment, targeting the European market. The core advantage of polymers is their good processability, compatible with existing roll-to-roll processes, but they have low room-temperature conductivity, requiring heating systems, making it difficult to balance cost and efficiency. II. Regional Competition: Japan Has the Most Mature Technology, the US Is Capital-Driven, South Korea Aggressively Expands Production, and Europe Focuses on High-End Applications Japan's four giants (Toyota, Nissan, Honda, Maxell) form the first tier of technology, leveraging their early lead in sulphides and material science, with a strong patent barrier. Toyota received government funding and policy support in 2025, with Sumitomo Metal providing high-durability cathode materials, completing a closed-loop industry chain. Nissan's Yokohama pilot plant began operations in January 2025, with an energy density of 400-500Wh/kg, and plans for large-scale production in 2028. Maxell targets high-temperature industrial scenarios, with 150°C-tolerant battery samples shipped in November, and a 10 billion yen investment in a Kyoto production line by 2030. Japan's model is a "government-conglomerate-automaker" triangle, solid in technology but conservative in marketization. US companies exhibit dual features of "technological diversification and capital-driven growth." QuantumScape, Factorial, and Solid Power, three unicorns, have received significant investments from traditional automakers, raising over $3 billion, but their mass production timelines generally lag behind those of Japan and South Korea. Blue Current, backed by Amazon with an $80 million D-round investment, focuses on silicon-based composite anodes; Ensurge collaborates with Corning on micro-batteries for wearable devices. The US advantage is an active capital market, tolerating longer R&D cycles, but lacking deep integration with automakers, making commercialization paths unclear. South Korea's three leaders (Samsung SDI, LG, SK On) adopt a "aggressive expansion and automaker partnerships" strategy. Samsung SDI has an annual capacity of 15,000 batteries, delivering samples to Hyundai; LG Chem plans to move from semi-solid state in 2026, to lithium-sulfur in 2027, and lithium-metal in 2028; SK On, with a stable customer base including Hyundai, Mercedes, and Ford, will start production at its 4628㎡ Daejeon pilot plant in September 2025, with mass production advanced to 2029. The Korean model prioritizes efficiency, advancing both domestic and overseas plants in Tennessee and Hesse, but lacks the originality of Japanese technology. Europe breaks through with technological innovation and high-end applications. Croatia's Rimac collaborates with ProLogium on high-performance vehicles, while the UK's Bolloré Bluecar has been in operation for 15 years, and Blue Solutions plans to increase energy density by 25% with its fifth-generation technology by 2035. Europe lacks local battery giants but positions itself upstream in the value chain through material innovation (Solvay polymers) and equipment development (Manz), targeting high-value sectors like aerospace and medical. III. Mass Production Challenges: Three Bottlenecks Hindering 2027 Goals Despite aggressive timetables, three bottlenecks remain unresolved: interface impedance degradation, leading to capacity retention below 90% after 1000 cycles; low-temperature performance, with capacity dropping over 30% below -20°C; and current sulphide battery costs being 2-3 times that of liquid batteries, with cost reduction dependent on kiloton-scale electrolyte production (Tinci and Yanyi New Materials plan to achieve this by 2027). Additionally, automotive-grade validation requires 2-3 years of safety and reliability testing. Models like Hongqi Tian Gong 06 and SAIC MG4 have only completed the first step of vehicle testing, with large-scale SOP expected after 2028. IV. Future Outlook: 2029 Will Be the Decisive Year, with Sulphides + NCM811 or Ni90+ Likely to Dominate Overall, the final battle for technological routes, originally expected between 2029-2030, may extend to 2030-2035. By then, Toyota, SK On, and Solid Power will have achieved mass production, with cost and performance data determining the final selection. The combination of sulphides, high-nickel ternary, and silicon-based/lithium metal anodes is expected to break through in high-end models first, while low-cost oxides and LFP semi-solid-state batteries (solid-liquid batteries) will find a niche in the ESS sector. If US companies fail to secure automaker partnerships by then, they may face a valuation bubble burst. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!

SMM January 08 Report: Highlights: During the week (January 02–08, 2026), solid-state battery industrialisation achieved a key breakthrough: Hongqi's all-solid-state battery was installed in a real vehicle and rolled off the production line, while Finnish startup Donut Lab launched a mass-producible product, marking a new phase in technology verification. Meanwhile, significant progress was made in core segments of the industry chain: Yixing Canmax's 5.2kt high-nickel cathode project commenced, Yahua Group and Haichen Pharmaceutical completed pilot tests of lithium sulphide and are preparing to send samples, and Zhengwang New Materials produced its first batch of CVD silicon carbon anode. On the materials front, a trend of "rising prices for traditional materials and falling prices for specialised materials" emerged, with a clear long-term path for cost reduction. Industrial investment is spreading from coastal regions to central China, and the mass production race is in full swing. Introduction: Weekly price trends show that prices of traditional lithium battery materials shared with solid-state batteries rose to varying degrees due to rising lithium chemical prices, while prices of solid-state battery-specific materials such as lithium sulphide and electrolytes declined, meeting the long-term need for lower battery cell costs in downstream markets. I. Materials: Progress in Three Key Materials 1. Cathode Materials: High-nickel ternary and lithium-rich manganese-based systems remain dominant, with LFP used in semi-solid-state batteries. High-nickel ternary: Yixing Canmax + GEM Yixing Canmax (controlled by Canmax) officially launched a 1.12 billion yuan project to produce 5.2kt of high-nickel ternary cathode material dedicated to solid-state batteries annually, and has completed a 200t pilot line. This marks the industry's first large-scale high-nickel cathode production line designed specifically for solid-state batteries, addressing the key bottleneck of material supply. GEM confirmed it has shipped tonne-level quantities of high-nickel precursors and cathode materials for solid-state batteries to global customers (including LG Chem). Additionally, it may deepen efforts in the recycling sector. Traditional LFP material: Gotion High-tech started construction on a 200,000t LFP cathode project. Semi-solid-state batteries will continue to widely adopt the mature and safe LFP system, forming diverse technology routes. 2. Electrolyte/Anode Materials: Accelerated industrialisation of sulphide electrolytes and silicon carbon anodes. Sulphide electrolytes reached a key "sample testing" period: Yahua Group and Haichen Pharmaceutical both announced this week that their lithium sulphide products (core raw material for sulphide solid-state electrolytes) completed pilot tests and will soon be sent to third parties for detection and customer sampling. This signifies a substantive breakthrough in the large-scale, high-purity preparation of the most challenging raw material for the sulphide route. Silicon carbon anode enters mass production via "CVD process": Zhengwang New Materials in production + Gotion High-tech starts construction. Zhengwang New Materials produced its first batch of CVD silicon carbon anode products. This process effectively mitigates silicon volume expansion and is the mainstream technical direction for silicon carbon anodes. Its capacity layout in Qingdao, Neijiang, and Meishan indicates that large-scale supply of silicon carbon anodes is imminent. Gotion High-tech started construction on a 10kt-level silicon carbon anode project, complementing its cathode project to form a complete solid-state battery materials layout. II. Batteries and Vehicles: FAW Hongqi's solid-state battery car + Finnish Donut Lab's solid-state battery motorcycle. The Hongqi Tiangong 06 was the most significant event this week: Hongqi's self-developed all-solid-state battery pack was successfully installed in a real vehicle and rolled off the production line, marking the entry of a major Chinese automaker into the real-vehicle testing phase for all-solid-state battery technology. This is a key milestone in industrial development, as technology verification advances from lab samples and single battery modules to a new stage of vehicle integration and performance testing. Finland's Donut Lab launched the first mass-producible all-solid-state battery at CES and announced it will be installed in the Verge TS Pro electric motorcycle for delivery. Its claimed 400Wh/kg energy density, 5-minute fast charging, and ultra-wide temperature range performance, if validated in mass production, could have a huge impact on the industry. Its choice of two-wheelers as the first application scenario is a practical and low-risk commercialisation path. III. Project Progress: Henan Pingdingshan + Jiangsu Yixing. The Henan Pingdingshan solid-state battery and sodium-ion battery industrial park project (total investment about 600 million yuan) was publicly tendered, planning to include two solid-state battery production lines. This indicates that the industrial layout for solid-state batteries is expanding from the eastern coast to central regions, with local governments actively seizing new heights in the new energy industry. Represented by the Canmax (Yixing) industrial park, the integrated park model combining R&D, pilot testing, and mass production is becoming a trend, benefiting industry chain collaboration and rapid iteration. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!

At the close of 2025, the continued rise in lithium carbonate prices pushed up lithium battery costs. With expectations of future cost advantages for sodium-ion batteries, substitution expectations continued to heat up, directly catalyzing a seasonal peak demand period in the industry chain. Against this backdrop, various segments of the sodium-ion battery industry showed differentiated growth trends. From materials to battery cell end-users, core product orders and production volumes benefited simultaneously. Enterprises engaged in frequent stockpiling and overseas expansion activities, laying a solid foundation for industry development in 2026. Cathode Material: Strong NFPP Orders in December, Positive Market Sentiment In December, sodium-ion battery cathode material production performed strongly, up 10% MoM and surging 156% YoY. Among these, the share of polyanion-type NFPP climbed to 81%, up 5 percentage points MoM, with its stable performance and cost adaptability offering greater advantages in substitution demand. NFPP orders remained high during the month, and producers actively stockpiled simultaneously to build inventory for the upcoming Chinese New Year holiday, ensuring timely delivery of unexpected orders during the holiday period. In contrast, the layered oxide O3-type product shipment performance was unsatisfactory.Affected by delays in related heavy-duty truck supporting projects and order postponements, layered oxide cathode production showed no significant improvement in December. Notably, another important route in the polyanion system—sodium iron sulfate (NFS)—recently showed signs of promotion, with multiple enterprises successively planning NFS capacity, expected to further open up growth space against the backdrop of continued lithium carbonate price increases. Looking ahead to January, sodium-ion battery cathode enterprises will plan production based on orders on hand while simultaneously stockpiling. Production in January is expected to decrease 3% MoM but still achieve substantial growth of 177% YoY. Hard Carbon Anode Material: Robust Order Demand in December, Capacity Accelerates Adaptation In December, sodium-ion battery anode material production continued its growth trend, increasing 10% MoM and surging 63% YoY. Orders for the core product, hard carbon anode, performed strongly, with some enterprises even facing tight delivery situations. Orders were mainly concentrated in cost-sensitive application fields such as ESS and start-stop. Currently, domestic hard carbon products have formed relatively clear functional segmentation, with corresponding price gradients also very distinct, enabling better adaptation to different customers' cost and performance needs. Besides securing orders from domestic battery cell manufacturers,hard carbon anode enterprises have also begun actively engaging with overseas customer orders to expand market space. Driven by continued optimism in downstream demand, the sodium-ion battery hard carbon anode market is expected to further expand, with capacity expansion becoming the primary task. Even though current capacity is still somewhat insufficient, the industry can compensate for short-term capacity gaps through partial process outsourcing. The hard carbon market is expected to enter a slight adjustment period in January, with production projected to decrease 12% MoM but increase 63% YoY. Sodium-ion Battery Electrolyte: Stable Domestic Landscape with Potential for Overseas Order Breakthrough In December, the production of sodium-ion battery electrolytes increased 4% MoM and 61% YoY. Affected by the previous price increase of LiPF6, the price of NaPF6 also rose in December. Currently, the capacity of NaPF6 is limited and mainly concentrated among top-tier enterprises, giving them strong bargaining power. Meanwhile, domestic electrolyte enterprises are actively exploring overseas markets for sodium-ion battery electrolytes, planning to expand into these markets in 2026 to find new growth drivers.In December, sodium-ion battery electrolyte enterprises organized production based on orders, benefiting from the release of year-end push for annual target demand from downstream battery cell enterprises amid rising lithium carbonate prices. Electrolyte factories followed suit in production, but generally had low stockpiling. It is expected that the production of electrolytes in January will decrease 13% MoM, with a 99% YoY increase. Battery Cells and End-users: ESS Sector Gains Momentum at Year-End, Start-Stop Market Faces Winter Test In December, the production of sodium-ion battery cells saw a significant increase, up 15% MoM and 140% YoY. The rise in lithium carbonate prices had the most direct impact in this segment, as the substantial increase in lithium carbonate prices in December raised the costs of LFP and other lithium battery systems, affecting the production sentiment of midstream and downstream players. The cost advantages of sodium-ion batteries may become more prominent in 2026, with a surge in orders for sodium-ion ESS projects at the end of 2025. Battery cell enterprises ensured supply and delivery, with some orders scheduled until February. Coupled with this cost advantage, the industry's expectations for sodium-ion battery development in 2026 have significantly improved.The current application of start-stop power supplies is still primarily in the secondary market. Facing the challenge of low winter temperatures, the sodium-ion start-stop market needs to build a reputation through excellent winter usage data, laying the foundation for future demand expansion and entry into original equipment manufacturer (OEM) systems. Additionally, influenced by the rising costs of LFP (linked to increases in lithium carbonate and iron phosphate prices), the extended-range/plug-in hybrid sector is expected to become an important breakthrough direction for sodium-ion batteries in 2026. It is projected that the production of sodium-ion battery cells in January will decline, down 13% MoM, but still with a 228% YoY increase. Overall Summary of the Industry Chain In summary, the outstanding performance of the sodium-ion battery industry chain in December, driven by the peak season effect of concentrated ESS project deliveries at year-end, formed a dual-benefit pattern of "cost-driven + demand-supported." Specifically, the NFPP route in cathode materials continues to lead due to its performance and cost advantages, while hard carbon anodes benefit from robust orders driven by substitution demands in the ESS and start-stop sectors. The electrolyte industry, while maintaining a stable domestic landscape, is actively expanding into overseas markets. On the battery cell side, direct substitution demand has led to high production growth. In the short term, production across all segments is likely to see MoM adjustments in January due to the Chinese New Year holiday,but if the market chain reaction caused by the rise in lithium carbonate prices persists, there could still be new breakthroughs for sodium-ion batteries YoY. In the long term, if the price center of lithium carbonate remains high, it will continue to strengthen the cost advantages of sodium-ion batteries. Combined with the advancement of new material routes such as NFS, breakthroughs in overseas markets, and the expansion of new application scenarios like extended-range hybrids, the sodium-ion battery industry in 2026 is expected to see a dual improvement in scale and quality. Cost advantages and scenario adaptability will become the core keys to industry competition.

SMM January 6 News: Key Points: Semi-solid-state (solid-liquid hybrid) battery energy storage is transitioning from technical validation to large-scale commercialization. The commissioning of multiple hundred-megawatt-scale projects and the landing of gigawatt-hour-scale orders by the end of 2025 demonstrate that, by enhancing intrinsic safety and cycle life, it has established differentiated value in high-standard grid-side applications. With top-tier producers ramping up mass-production capabilities and costs declining rapidly (system prices initially appearing at 0.55 Yuan/Wh), this technology is expected to achieve a commercial breakthrough first in the high-end energy storage market with stringent safety and longevity requirements, although it must continue to catch up on cost with traditional LFP batteries, which have entered the 0.3 Yuan/Wh range. By the end of 2025, the concentrated commissioning of large projects, represented by the Guangdong Huadian Shanwei Project (grid-connected on December 29, 2025) and the China Green Development Wuhai Project (grid-connected on December 1, 2025), along with the order for a 2.8 GWh standalone energy storage project using 314Ah semi-solid-state batteries signed by Narada Power on August 11, 2025, signals a potential fundamental turning point for the semi-solid-state battery energy storage track. SMM has collected information on multiple semi-solid-state battery energy storage projects and interprets the market situation from the following dimensions. Note: Semi-solid-state energy storage batteries will soon be designated as solid-liquid energy storage batteries and applied in large, medium, and small-scale energy storage projects. I. Core Conclusion: Industrialization Accelerates, Demonstration Projects Validate Commercial Value Over the past two years (2024-2025), semi-solid-state battery energy storage projects have completed the leap from small-scale demonstrations (e.g., a 466 kWh user-side project) to medium-scale hybrid validation (e.g., part of the capacity in the Xinjiang Balikun 156 MW/624 MWh project), and further to hundred-megawatt-scale standalone applications. In December 2025, two landmark events defined this historical period: Largest Scale: The Wuhai 200 MW/800 MWh project is currently the world's largest publicly disclosed semi-solid-state battery energy storage power station. Its commissioning is not just a project success but a clear signal that semi-solid-state batteries possess the capability for scaled delivery supported by GWh-level production capacity. Highest Technical Recognition: The Shanwei 200 MW/400 MWh project was designated the "National Energy Administration's First (Set) Hundred-Megawatt-Level Large-Capacity Semi-Solid-State Lithium-Ion Battery Energy Storage Project." This designation far exceeds that of an ordinary demonstration project, representing the highest national-level recognition for this technology route's safety, reliability, and technical advancement in large-scale power system energy storage applications, carrying strong policy guidance and industry endorsement effects. II. In-Depth Analysis: Four Major Trends in Semi-Solid-State Battery Energy Storage Projects 1. Technology Route Solidification and Leading Suppliers Emerge LFP-based semi-solid-state becomes mainstream: Recent large projects (Wuhai, Shanwei, Guangdong Zhiguang subcontract project) all explicitly adopted "semi-solid-state LFP batteries." This indicates the industry has found the current optimal balance between energy density, safety, and cost – building upon the high safety and low cost of the mature LFP system while significantly enhancing intrinsic safety through solid-state electrolyte modification. Qingtao Energy emerges as the big winner: The table shows that Qingtao Energy (Kunshan Qingtao, Suzhou Qingtao) successively won the Georg Fischer user-side project and the Wuhai 200 MW/800 MWh project, and played a key role in the Shanwei project. This indicates it has established complete delivery capabilities from cell to system and strong customer trust, gaining a clear first-mover advantage in the scaling track. Others like WELION New Energy (supplier for the Zhejiang Longquan project) also hold important niches. 2. Application Scenarios Focus on Grid-Side, Value Proposition is Clear All recent large projects are either grid-side standalone energy storage or renewable energy ESS integration. This highlights that the core competitiveness of semi-solid-state batteries lies in addressing the grid's concerns regarding "absolute safety" and "long service life" for energy storage. For example, the North China Oilfield project emphasized "no explosion during nail penetration or gunshot tests" and low-temperature performance, while the Wuhai and Shanwei projects target a service life exceeding 10 years with high cycle times. These address the pain points of traditional liquid lithium battery energy storage. Semi-solid-state technology, with its higher safety redundancy and cycle life, directly meets the core demands of large-scale power energy storage, providing a value basis for its higher initial investment. 3. System Integration Technology Becomes More High-End, Seeking a "1+1>2" Effect Innovative "semi-solid-state+" integration becomes a hot topic. The Shanwei project adopted a combination of "semi-solid-state battery + high-voltage cascaded energy storage." High-voltage cascaded technology itself can eliminate the boost transformer and improve efficiency; coupled with the safety advantages of semi-solid-state batteries, it forms a system solution superior in both efficiency and safety. This suggests that in the future, semi-solid-state batteries will not merely be a cell replacement but will drive the optimization and upgrade of the entire energy storage system architecture. 4. Cost Reduction Path Emerges, Dawn of Economic Viability Appears The winning bid price for the Wuhai project provides a key signal: Suzhou Qingtao won the battery system bid at a unit price of 0.55 Yuan/Wh. Although this price remains higher than current top-tier liquid LFP energy storage systems (approximately 0.6-0.7 Yuan/Wh for project quotations, with even lower cell costs), considering it is the first project of its scale (200 MW/800 MWh) and utilizes new technology, the price is far below early market expectations. This indicates that as semi-solid-state battery capacity ramps up and the industry chain matures, the premium over high-end liquid batteries is narrowing to an acceptable range, providing an important reference for subsequent larger-scale tender pricing. Recalling the announcement on Narada Power's official account on August 11, 2025, regarding the successful signing of a standalone energy storage project order with a total capacity of up to 2.8 GWh, it is evident that Narada's self-developed 314Ah semi-solid-state energy storage batteries were used in this project. This represents the world's largest semi-solid-state battery energy storage project to date and the first commercial application of solid-state battery technology in a global GWh-scale energy storage project. The project scale in the Shenzhen area is 1.2 GWh; two projects are deployed in the Shanwei area, each with a capacity of 800 MWh. On the cost front, Narada has compressed LFP battery costs to the extreme. III. Future Predictions: 2026 Track Outlook Capacity and delivery will become the new focus: With the commissioning of multiple hundred-megawatt-scale projects, the market in 2026 will test whether leading enterprises like Qingtao, WELION, etc., possess the capability for continuous, stable, and high-quality GWh-scale delivery. Capacity ramp-up and supply chain management will be the core competitive factors in the next phase. Standards and certification systems urgently need development: As a new technology, the industry urgently needs to establish testing standards, safety specifications, and grid-connection certification systems for "semi-solid-state" or "solid-liquid hybrid" batteries in energy storage scenarios to reduce hidden costs of market promotion. More players entering, competitive landscape evolving: Liquid battery giants like CATL and BYD, as well as solid-state battery manufacturers like Ganfeng LiEnergy, are expected to accelerate the launch of their semi-solid-state route energy storage products into the market in 2026 and compete for demonstration projects. Market competition will intensify, further driving technological innovation and cost reduction. Application scenarios will extend overseas: Given its pursuit of ultimate safety, semi-solid-state battery energy storage may possess a unique market entry advantage in overseas high-end markets with extremely high fire safety standards, such as Europe and North America. The first overseas demonstration projects are expected to be seen in 2026. IV. Summary 1. Low-Temperature Weakness: Semi-solid-state battery energy storage needs to address the weakness of traditional LFP energy storage batteries, namely the reduced economic performance at low temperatures. 2. Cost Requirements: The energy storage market has stringent cost requirements. Technological iteration aims to increase the energy density and overall performance of LFP batteries to reduce the cost per Wh. Winning bid prices for many energy storage projects have fallen below 0.3 Yuan/Wh, posing a challenge for semi-solid-state batteries competing in this track. 3. Economics: Semi-solid-state battery energy storage needs to achieve greater improvements in cycle life, stability, etc., compared to traditional LFP batteries to meet economic requirements. 1. Low-Temperature Weakness: Semi-solid-state battery energy storage needs to address the weakness of traditional LFP energy storage batteries, namely the reduced economic performance at low temperatures. 2. Cost Requirements: The energy storage market has stringent cost requirements. Technological iteration aims to increase the energy density and overall performance of LFP batteries to reduce the cost per Wh. Winning bid prices for many energy storage projects have fallen below 0.3 Yuan/Wh, posing a challenge for semi-solid-state batteries competing in this track. 3. Economics: Semi-solid-state battery energy storage needs to achieve greater improvements in cycle life, stability, etc., compared to traditional LFP batteries to meet economic requirements. According to SMM forecasts, all-solid-state battery shipments will reach 13.5 GWh by 2028, while semi-solid-state battery shipments will reach 160 GWh. Global lithium-ion battery demand is projected to reach approximately 2,800 GWh by 2030, with the EV sector's lithium-ion battery demand showing a CAGR of around 11% from 2024 to 2030, ESS lithium-ion battery demand at a CAGR of about 27%, and consumer electronics lithium battery demand at a CAGR of roughly 10%. Global solid-state battery penetration is estimated at about 0.1% in 2025, with all-solid-state battery penetration expected to reach around 4% by 2030, and global solid-state battery penetration potentially approaching 10% by 2035. **Note:** For further details or inquiries regarding solid-state battery development, please contact: Phone: 021-20707860 (or WeChat: 13585549799) Contact: Chaoxing Yang. Thank you!