China's First Sulphide All-Solid-State Real-Vehicle Road Test Completed, 30 Gwh-Class Projects Intensively Implemented [SMM Solid-State Battery Weekly Analysis]

SMM August 7 News:

Key Takeaways: This week (31 July – 6 August 2026), the solid-state battery industry saw a triple resonance of technology validation, capacity rollout, and capital influx. Zhongke Yuanben completed China’s first real-vehicle road test of a sulphide-based all-solid-state battery, validating full-stack technology integration capability. Sinocera Material’s sulphide electrolyte mass production line construction was completed, while Ronbay Technology’s 100-mt-level cathode material demand approached. Tuo Yi Solid Energy’s 6 billion yuan 30 GWh project landed in Inner Mongolia, and WELION New Energy initiated a Pre-IPO financing at a 20 billion yuan valuation. Outside China, Solid Power advanced its continuous electrolyte production line, and Factorial partnered with SK On to explore industrialization of solid-state batteries using existing lithium-ion production lines. 2026, as a critical window for industrialization breakthroughs, is shifting from “single-point breakthroughs” to “systematic advancement.”

1. Material Side: Sulphide Electrolyte Production Accelerates, Cathode Material Demand Nears 100-mt Level
1.1 Core Trends in Solid-State Battery Material Prices This Week (31 July – 6 August 2026): Sulphide Declines Accelerate, Oxide Bottoms Out
Sulphide electrolyte LPSC fell to 4,400 yuan/kg this week, with a cumulative monthly decline of 34.3%, mainly driven by downstream concentrated procurement pushing for lower prices. Sinocera Material announced this week that its automated sulphide electrolyte production line construction was completed, further reinforcing expectations of supply release.
Battery-grade lithium sulphide was at 1,320 yuan/kg, down 9.0% month-on-month, but dipped only 0.8% this week, as the downward pace slowed. Gotion High-tech’s 20,000 mt project kicked off, and Tinci Materials’ 100-mt pilot line progressed, easing long-term supply expectations. However, currently available volumes remain limited, softening near-term declines.
Oxide electrolytes LLZO and LATP were the most stable, at 638 yuan/kg and 93 yuan/kg respectively, having traded sideways for consecutive days. Downstream demand for semi-solid-state battery coated separators continued to expand; SMM data shows H2 production is expected to be 2,000–2,500 mt, providing solid support from the demand side.
1.2 Industry Updates , Zhongke Yuanben completed China’s first real-vehicle road test of a sulphide all-solid-state battery, boosting confidence in the industrialization of the sulphide route. GEM’s 500-mt pilot base in Wuxi was approved. Overall, sulphide material prices are still finding a bottom, while oxide has already stabilized.
The most prominent signal from the material side this week (31 July – 6 August 2026) was the substantial build-up of sulphide solid-state electrolyte mass production capability. At its 5 August analyst meeting, Sinocera Material announced it had completed an automated solid-state sulphide electrolyte production line, establishing initial mass production capability, with product quality highly recognized by clients. It will reasonably plan capacity expansion pace based on market demand going forward. This marks an important period for China’s sulphide electrolyte sector, moving from “laboratory samples” to “mass supply from production lines.”
Cathode materials, Ronbay Technology is simultaneously advancing the development of semi-solid liquid and all-solid-state materials. For all-solid-state, the focus is on developing new-type ternary and lithium-rich manganese-based cathode materials; some samples have achieved good test results at the client side, and the production process is compatible with existing ternary lines. Market demand close to 100 mt is expected to form this year, with small-batch production commencing in 2027. Electrolyte side, the company plans to complete the construction of a ten-mt-level sulphide electrolyte production line this year. This information confirms our assessment that the industrialisation pace of cathode materials is faster than that of electrolytes, primarily because cathode materials can better leverage existing ternary lines, with limited need for large-scale capital expenditure in the short term.
Shandong Chuanglu has completed pilot-scale verification of its full range of solid-state electrolytes and lithium-rich manganese-based cathode materials. A solid-state electrolyte production line with an annual capacity of 150 mt has completed installation and commissioning, and a kt-level cathode material production line has entered trial production.
Xiangtan Electrochemical’s subsidiary Guangxi Lijing is conducting cooperative R&D with some solid-state battery enterprises on the application of LMO in semi-solid liquid/solid-state batteries, with breakthroughs expected by the end of 2026 or early 2027.
Notably, Crown New Materials selected a modified resin resistant to 120°C high temperatures to meet the high-temperature requirements of solid-state batteries, increasing composite interlayer peel strength by over 40% at 85°C and over 50% at 120°C, and has completed client sample trials. As an "invisible link" in the solid-state battery industry chain, the technological breakthroughs in packaging materials are also worth tracking.
II. Battery Side: China’s first sulphide all-solid-state vehicle road test completed, marking a key step in safety verification
The most landmark event on the battery side this week was the completion of an actual vehicle road test for a sulphide all-solid-state battery by Zhongke Yuanben—the first publicly reported instance of a sulphide all-solid-state battery installed and operating in a vehicle in China. The battery pack was composed of 16 20Ah-class sulphide all-solid-state battery cells, with key parameters such as system energy density and voltage platform highly matched with the vehicle's original electronic control system. Dr. Wang Jiutian, technical head of Zhongke Yuanben, stated that this road test successfully verified the full-stack technical integration capability from foundational material innovation to upper-level battery cell integration.
From the technical parameters, the battery adopts a nano-scale homogenized coating high-nickel ternary cathode, a sulphide all-solid-state electrolyte, and a silicon-carbon composite anode system, with battery cell dimensions of 25cm×14cm, an energy density >265Wh/kg, and tested capacities of 26.3Ah and 55.1Ah, respectively. This means that the compatibility, feasibility, and stability of the sulphide route under real vehicle conditions have been systematically verified for the first time.
Juyan Technology's all-solid-state battery cells have passed the new national standard (GB 38031-2025) nail penetration test. The 40Ah cell, after being fully charged and punctured, was left to stand for an extended period and observed; all indicators met the standard. The cell relies on a self-developed ESC deep eutectic-based composite solid-state electrolyte system, contains no free liquid electrolyte inside, and the puncture damage is limited to the local area around the needle tip.
Gotion High-tech's Jinshi all-solid-state battery is transitioning from demonstration to mass production, with the construction of a 2 GWh mass production line advancing steadily, and has already engaged with clients across multiple application scenarios.
III. Project Side: Capacity Implementation Accelerates, 30 GWh-Class Projects Emerge
The most noteworthy on the project side this week is that Tuoyi Guneng's 6 billion yuan solid-state battery project has settled in Chilechuan, Inner Mongolia, with a planned total capacity of 30 GWh, to be built in three phases, each with an investment of 2 billion yuan and a 10 GWh production line. As of now, Inner Mongolia has landed/filed 6 solid-state battery related projects, with a total planned capacity of 47.2 GWh and a total investment of 16.8 billion yuan.
Other projects under construction/promotion include:
Guangdong Shanhui has invested 2 billion yuan to build a 3 GWh all-solid-state battery finished product project, covering markets such as digital products, agricultural machinery, drones, and EV and ESS, located in Yangjiang, Guangdong;
WELION New Energy's Guangdong-Hong Kong-Macao Greater Bay Area Green Energy Valley Solid-State Battery Industrial Park project officially broke ground in Guangzhou;
SEVC POWER's 0.1 GWh all-solid-state battery intelligent pilot line in Yibin is expected to be completed by the end of 2026, focusing on the sulphide route;
Enli Power's 2 GWh semi-solid-state battery base in Chuzhou, Anhui, completed capacity ramp-up and reached full production in July 2026;
Guosheng Global's 10 GWh solid-state battery industry chain project in Tieling saw its first-line equipment moved into the workshop in July;
The Hukou solid-state ESS battery project has a planned total capacity of 6 GWh all-solid-state batteries.
From the capacity layout perspective, Inner Mongolia is emerging as a new hub for the solid-state battery industry by virtue of its energy resource advantages, while Guangdong, Sichuan, Anhui, and other regions are also rapidly securing their positions. The industry generally believes that 2026 represents a critical window for breakthroughs in solid-state battery industrialisation.
IV. Financing and Cooperation: Pre-IPO and Series A Fundraising in Parallel, Capital Interest Continues to Heat Up
On the financing front, the biggest news of the week is that WELION New Energy is advancing a 2 billion yuan Pre-IPO financing round, with a pre-money valuation of approximately 20 billion yuan. The company completed its ChiNext IPO counselling filing in December 2025 and plans to apply for an A-share ChiNext listing. Another solid-state battery unicorn, Qingtao Energy, submitted its IPO application to the Hong Kong Stock Exchange in April 2026, aiming to raise $700 million to $900 million. After completing its Series H financing in February 2026, its valuation was approximately 27.9 billion yuan. The two top-tier players are targeting the A-share ChiNext board and the Hong Kong stock market, respectively, and the race for the "first solid-state battery stock" is heating up.
ProLogium Technology announced on July 28 that it had received $50 million (approximately 338 million yuan) in equity financing from a consortium of existing shareholders, as part of the financing related to the merger with SPAC company TDAC. The company plans to list on Nasdaq under "PRLG" with a pre-transaction valuation of up to $3.8 billion.
Keyuan Guneng received Series A investment from Yueke Xintai to support R&D and industrialisation in solid-state electrolyte and solid-liquid hybrid battery cells. Zhihua Energy completed Series C financing, continuing to bolster R&D and capacity expansion of silicon carbon anode materials.
Cooperation side, AESC applied for a patent for "solid-state electrolyte membrane and solid-state battery", using a three-layer structure consisting of a halide electrolyte layer, a sulphide electrolyte layer, and a fluorinated polyimide and COF material layer. The environmental assessment for the high-performance solid-state battery cathode and electrolyte material pilot and industrialisation base project of GEM Wuxi was approved, with a total investment of 120 million yuan. Jinlongyu New Energy obtained a construction permit for its solid-state battery materials project.

5. Overseas Progress: Solid Power's Losses Widened but Production Line Advanced; Factorial Partners with SK On
Solid Power reported its Q2 2026 results, with a net loss of $23.8 million (or $0.11 per share), which was narrower than the market expectation of a $0.1224 loss, but revenue was negative $300,000. The negative revenue was mainly due to the company's adjustment of assumptions on milestone payments related to the R&D licensing agreement with SK On, resulting in the reversal of $1.2 million in revenue recognised in Q1.
Production line side, construction of the continuous electrolyte pilot line is progressing as planned, with major equipment installed (including the rotary kiln installed in May). Equipment acceptance testing is expected to be completed in Q3, factory validation and operation startup are expected in Q4, and trial runs are expected to be completed and operational by year-end. The line has a designed capacity of 45 mt, with first products expected in Q1 2027.
Cooperation side, Solid Power continues to fulfil its joint evaluation agreement with Samsung SDI and BMW, having sent electrolyte samples to support development activities. The initial phase of the agreement is expected to expire at the end of September, and the company is discussing a continued cooperation framework with both parties. Additionally, the company is actively advancing a commercial-scale electrolyte joint venture in South Korea, and has been in active discussions with three potential partners, one of which has advanced to the term sheet stage. The joint venture announcement is expected before year-end. The company also completed a line installation agreement with SK On this quarter and received milestone payments.
Factorial Energy signed a memorandum of understanding (MOU) with SK On, under which they will jointly assess the technical feasibility of using SK On's existing lithium-ion battery manufacturing facilities to produce Factorial's solid-state batteries. The innovative aspect of this cooperation model lies in leveraging existing lithium-ion production lines to advance the industrialisation of solid-state batteries, which, if validated successfully, could significantly lower the barriers to solid-state battery industrialisation.
Samsung SDI announced that it will invest 25 trillion won (approximately over 130 billion yuan) from 2026 to 2040 to expand its two major production sites in Ulsan and Cheonan, South Korea, with the Ulsan plant to establish a mass production line for all-solid-state batteries.
Georgia Institute of Technology reported an amorphous ZrCl₄-based solid electrolyte with a raw material cost of only about $21/kg, offering a low-cost solution for the commercialization of all-solid-state batteries.
6. Industry Voices
Gotion High-tech Senior Vice President Zhou Fu said on August 3 that the battery consumption tax adjustment is an industry reshuffle, with short-term cost pressure but overall manageable, which will accelerate capacity rationalization at the tail end and further concentrate market share towards top-tier players. Jinshi all-solid-state batteries are moving from demonstration to mass production.
Sunwoda Vice President Liang Rui said that the lithium battery industry has entered a stage of competition based on "real skills," and the company will not engage in price wars while steadily advancing solid-state batteries.
Zhongke Yuanben’s Dr. Wang Jiutian said that the successful road test validated the full-stack technical integration capability from underlying material innovation to top-level battery cell integration.
Summary: This week, the solid-state battery industry exhibited a three-fold resonance of "technology validation breakthroughs + accelerated capacity materialization + sustained capital inflows." Zhongke Yuanben completed China’s first road test of a sulphide all-solid-state vehicle, Guoci Materials built a sulphide electrolyte production line, Tuoyi Gulei’s 30GWh project settled in Inner Mongolia, and WELION New Energy secured Pre-IPO financing at a valuation of 20 billion yuan—from materials to batteries, from projects to capital, the industrialization of solid-state batteries is moving from "single-point breakthroughs" to "systematic advancement." Outside China, the progress of Solid Power’s production line and the Factorial+SK On cooperation model are worth continuous tracking. 2026, as a critical window for breakthroughs in solid-state battery industrialization, is being validated by an increasing number of substantial developments.

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