Semi-solid-state battery Leading flight in airspace; Farasis eVTOL batteries for TCab Tech E20 model

SMM July 18 News:

On July 17, 2025, Farasis Energy (688567) stated on the interactive platform that the company exclusively supplies second-generation semi-solid-state eVTOL batteries for the E20 model to Shanghai-based AutoFlight. The energy density, discharge rate, and safety requirements of eVTOL batteries have significantly increased, accounting for a substantial proportion of the total value of eVTOL aircraft. The company's all-solid-state battery products are also expected to be applied in fields such as eVTOL and humanoid robots in the future.

Characteristics of Farasis' product generations:
First-generation semi-solid-state: 285 Wh/kg, 7C pulse, 20-minute fast charging (10–80% SOC), -20°C capacity retention of 90% (already deployed).
Second-generation: 320 Wh/kg, 10C pulse, 15-minute fast charging (small-scale production imminent).
Second-generation Plus: 350 Wh/kg, expected mass production in 2026.
Third-generation semi-solid-state/all-solid-state: 400 Wh/kg, currently under testing.

Exclusive supply: Farasis Energy (688567) exclusively provides second-generation semi-solid-state eVTOL batteries for the E20 model to AutoFlight.

$1 billion order: On July 16, UAE-based Autocraft signed a $1 billion agreement with AutoFlight to purchase 350 E20 eVTOL aircraft, marking the largest single eVTOL intent order in China to date. All batteries will be supplied by Farasis Energy.

SMM believes that Farasis Energy secured the world's largest exclusive eVTOL battery supply contract (350 aircraft, $1 billion) while simultaneously unveiling a roadmap for three generations of semi/all-solid-state batteries. This not only signifies Farasis' strategic positioning in the low-altitude economy but also marks the first time a Chinese power battery enterprise has achieved dual leadership in both technology and commercial viability in the "aerial domain."

Additionally, at the Suzhou CLNB 2025 (10th) New Energy Industry Expo organized by SMM, Mr. Huang Zhiwen, Product Management Director of Farasis Energy, attended and delivered a remarkable speech at the low-altitude economy forum.

Mr. Huang Zhiwen, Product Management Director of Farasis Energy

"Farasis Energy's power battery solutions for the low-altitude economy can be applied to various application scenarios, including eVTOL, logistics and transportation, agricultural plant protection, surveying and mapping, and special purposes. These solutions offer advantages such as compliance with international safety standards, a high energy density of over 350 Wh/kg for battery cells, long pulse power of 7~10C, wide temperature operation from -40℃ to 60℃, over 10,000 flight cycles, and high-quality standards."

— Huang Zhiwen

一、里程碑事件

I. Milestone Events
Valuation Analysis: A single $1 billion order set a new record for China's eVTOL industry, with battery costs accounting for 25–30% of the total, translating to battery pack values of $250–300 million, equivalent to shipments of 1.5–2 Gwh (estimated at 500 kWh per unit, with a semi-solid battery cost of around 2 yuan per Wh)

Globally, eVTOL batteries remain in the "demonstration–small batch" phase. Securing an order for 350 units at once effectively captures the majority of foreseeable global eVTOL battery demand before 2026.

The procurement by UAE's Autocraft holds benchmark significance: backed by Middle Eastern sovereign wealth funds, strong financial capabilities, and rapid policy implementation, it could drive follow-up orders from GCC countries and Belt and Road Initiative regions.

II. Technology and Competition
Performance Thresholds: eVTOL batteries must simultaneously meet "three highs": energy density >300Wh/kg, power density >1.5kW/kg, and cycle life >2,000 cycles (DOD80%). Currently, only a few players globally meet these standards, including CATL (condensed-state 325Wh/kg), SES AI (semi-solid-state 400Wh/kg lab), and LG Energy Solution (NCMA high-nickel 300Wh/kg).

Safety Redundancy: Thermal runaway trigger temperature must exceed 200°C, far surpassing the automotive standard of 150°C, and pass DO-311A aviation-grade testing. Farasis' second-generation product has achieved a 100% pass rate in nail penetration, overcharge, and short-circuit tests.

Supply Chain: Over 70% localisation for high-nickel 9-series cathode, silicon carbon anode, and solid-state electrolyte film. Farasis' Phase I electrolyte film production of 5 million m² will reach full production in Q1 2025, covering 4GWh demand and reducing cost curves by 20–25%.

Competition Window: 2025–2027 marks a global eVTOL airworthiness certification peak. Once batteries are locked in with OEMs, replacement costs become prohibitively high, creating a "locked-in" moat.

III. Commercialization Progress
Profit Accelerates Commercialization: Current eVTOL battery selling prices range from $800–1,000/kWh, 7–9 times the average power battery price ($110/kWh), with gross margins of 35–40%, significantly higher than power batteries' 10–15%.

The E20 model will begin batch deliveries in 2026, with Farasis' revenue recognition concentrated in 2026–2028, projected to contribute 2.5–3 billion yuan in revenue and 700–900 million yuan in profit (assuming a 30% net margin).

IV. Derivative Benefits: 15GWh Baseline Demand
Humanoid Robots: All-solid-state 400Wh/kg batteries could address high power density + long driving range challenges, with projected demand of 10GWh by 2030.

Low-Altitude Logistics: SF Express and JD.com have launched 2mt-class eVTOL logistics aircraft projects, adding 5GWh battery demand.

V. Critical Periods
Airworthiness Progress: The E20 model's TC (Type Certificate) is expected in Q4 2025; delays could impact delivery schedules.

Technology Iteration: Breakthroughs in all-solid-state routes (sulphide/oxide) could disrupt existing semi-solid-state solutions.

Capacity Alignment: Farasis' current dedicated eVTOL production line stands at 1GWh, requiring expansion to 5GWh by the end of 2025 to cover orders on hand, with capital expenditures of 1.5–2 billion yuan, posing cash flow pressures.

VI. Farasis' Progress
Valuation Catalyst: The low-altitude economy has entered a policy + order double-click phase. As the "sole mass-production supplier," Farasis enjoys scarcity premiums, warranting a 2026 eVTOL business PE of 30–35×, corresponding to a market cap increase of 20–25 billion yuan. A 30× multiple suggests substantial investment returns.

Medium and Long-Term: If all-solid-state 400Wh/kg batteries achieve mass production by 2027, unlocking a second growth curve (robotics + ESS), long-term profit potential could double.

Key Metrics: Second-gen semi-solid-state battery yield rates, Phase I electrolyte film production status in Q1 2025, and E20 model TC certification period. Popular Science: E20 Aircraft Model
The E20 aircraft model, also known as the E20 eVTOL, is a domestically produced 5-seater manned electric tilt-rotor aircraft with the code name "E20," independently developed by Shanghai TEC Technology Co., Ltd. The aircraft features a tilt-rotor configuration, with a designed maximum range of 200 kilometers, a cruise speed of 260 kilometers per hour, and a maximum speed of 320 kilometers per hour. As a purely electric-powered aircraft, it adopts a motor and electrification architecture design, simplifying the power transmission method and making flight more convenient and safe. It employs a large-diameter, low-speed, 5-blade propeller, significantly reducing flight noise and providing a quiet and comfortable flight experience. The entire aircraft offers high cost-effectiveness and economic benefits.
In October 2023, TEC Technology's E20 eVTOL completed its first round of test flights.
On April 17, 2025, BOC Financial Leasing Co., Ltd., a subsidiary of the Bank of China, reached a strategic cooperation agreement with Shanghai TEC Technology Co., Ltd. Representatives from both sides officially signed a letter of intent for the purchase of 100 E20 eVTOL aircraft.
On July 16, 2025, Shanghai TEC Technology Co., Ltd. announced that it had signed a procurement agreement with Autocraft, a UAE-based enterprise, with an order value of $1 billion.
Popular Science: E20 Aircraft Model TC Certification Period
This refers to the critical milestone time that needs to be completed and passed during the process of Shanghai TEC Technology applying for the "Type Certificate (TC)" for its tilt-rotor eVTOL aircraft model E20. The TC is the formal recognition by the Civil Aviation Administration of China (CAAC) of the aircraft's design safety. Only with the TC can the aircraft be legally put into commercial operation.
According to publicly available information, the timetable for E20's certification is as follows:
December 10, 2024: The first Type Certificate Board (TCB) meeting was held in Shanghai.
January 2025: TEC Technology and the CAAC signed the "Airworthiness Certification Issue Summary" for the G-1 phase, marking the entry of the TC application into the substantive review stage.
Estimated certification period: Obtain the TC and commence mass production in 2027.
Therefore, when the market discusses the "E20 TC certification period," the core focus is on whether it can pass the final review by the CAAC and obtain the Type Certificate as scheduled in 2027. This directly determines the delivery schedule for the subsequent 350-aircraft order from the UAE and the realization of profits for the entire eVTOL business.