Dongfeng Mass Production Countdown, Material Cost Reduction & Overseas Breakthroughs Drive Industrialization

Key Takeaways

Dongfeng’s new-generation solid-state battery (oxide-polymer composite) to start mass production in 2H 2026; demo vehicles logged >3.2 million km safely. Dongchi Energy’s semi-solid储能调频 device shipped to Djibouti (offshore oil platform application). Aviation solid-state battery energy density exceeds 480Wh/kg, boosting eVTOL range by 65%+. Sun Xueliang’s team achieved low-cost Li₂S (cutting sulfide electrolyte cost by >86%) and Li-Te battery with 13,000+ cycles. Overseas: Maxell’s heat-resistant all-solid battery selected by JAXA; Gelion + Nissan + Oxford launch solid-state Li-S project. Domestic semi-solid storage projects and industry-academia collaborations intensify.

Solid-State Battery Material Prices (June 5–11)

Key material prices mostly declined vs. prior week. Cathode: LFP 3rd Gen, 811 NCM, and lithium metal dropped by 0.2, 0.3, and 3.7 (10k yuan/t or yuan/kg respectively). Sulfide electrolyte raw materials saw notable declines: Li₂S down 40.0, LPSC down 300.0 (yuan/kg), while P₂S₅ edged up 1.0. The broad price easing reflects looser supply/demand or accelerated cost reduction, benefiting solid-state battery industrialization.

I. Materials

1. Low-cost Li₂S synthesis breakthrough – Sun Xueliang’s team at Ningbo Eastern University of Technology (NEUT) produced high-quality Li₂S from industrial Li₂CO₃ and low-cost NH₄SCN via multi-step metathesis, cutting sulfide electrolyte cost by 86.6–88.5% (Angew. Chem. Int. Ed.).

2. All-solid-state Li-Te battery with ultra-long cycle life – Same team reported in JACS a Li-Te battery with Te content up to 91 wt% (Te91@LPSC-350), achieving >13,000 stable cycles under low external pressure.

3. Joint lab for solid-state cathode materials – NEUT and Greenme signed agreement on June 5 to establish a joint laboratory focusing on key cathode technologies.

II. Battery

1. Dongfeng’s next-gen solid-state battery to start production in 2H 2026 – Oxide-polymer composite route, 100% self-developed IP. Passed crush, high-temperature, and extreme cold tests. Demo fleet >3.2 million safe kilometers.

2. Aviation solid-state battery progress – Xinyang Energy supplies 480+ Wh/kg solid-state Li-metal battery to EHang (EH216-S), boosting range by >65%. CALB’s 360 Wh/kg aviation battery completed airworthiness pre-certification and mass delivery.

3. Dongchi Energy semi-solid storage frequency regulation device exported – First unit adapted for CNOOC offshore oil platforms shipped to Djibouti (semi-solid LFP battery).

III. Projects (Storage & Capacity)

1. Zhuhai Fushan semi-solid independent storage station approved – Guangdong Electric Power A (000539.SZ) to build 200MW/400MWh station, total investment RMB 424M, using semi-solid LFP technology.

2. 1GWh semi-solid battery line signed in Jinzhou, Liaoning – Local government and Beijing Judi Boyan New Energy signed framework agreement for 1GWh semi-solid polymer Li-ion battery production line.

IV. Financing & Cooperation

1. Tripartite cooperation – Shanghai Energy (Enjie), Lingyun Guang, and Weilan New Energy collaborate on “materials + solid-state battery + AI smart manufacturing”.

2. NEUT + Greenme joint lab (see I.3).

V. Overseas Progress

1. Maxell’s heat-resistant all-solid battery selected by JAXA – Will be validated on small satellite platform under JAXA-STEPS program.

2. Gelion + Nissan + Oxford launch solid-state Li-S project – 3-year CoRe‑SoLiS project, total £34M (£24M from UK Innovate), introducing nano-encapsulated sulfur cathode (NES™) for next-gen automotive batteries.

VI. Expert Voice

Academician Sun Xueliang (NEUT, CAE foreign member):
“Our low-cost Li₂S route reduces sulfide electrolyte cost by nearly 90%, turning all-solid-state batteries from ‘luxury’ to ‘affordable’. In 3-5 years, sulfide-based routes are likely to achieve commercial breakthroughs in specific scenarios.”

Industry consensus: Semi-solid batteries are entering large-scale deployment in storage, frequency regulation, and eVTOL. All-solid-state batteries are advancing in materials innovation and forward-looking aerospace/auto applications. Dongfeng’s H2 2026 mass production will be a landmark for China’s solid-state battery industrialization, while aviation and overseas markets broaden the technology’s application boundaries.

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.

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