Interpretation of Solid-State Batteries in the "Action Plan for Large-Scale Construction of New-Type Energy Storage (2025–2027)"

SMM September 17 News:

Key points: On September 12, 2025, the National Development and Reform Commission (NDRC) and the National Energy Administration issued a notice on the "Action Plan for Large-Scale Construction of New-Type Energy Storage (2025–2027)," explicitly listing solid-state batteries as a key technology for development and promoting their large-scale growth through technological breakthroughs, demonstration applications, and standard establishment. The policy aims to achieve large-scale application of semi-solid-state batteries and finalize the technology for all-solid-state batteries by 2027, helping to boost new-type ESS installations to over 180 million kW and drive direct investment of approximately 250 billion yuan.

On September 12, 2025, the National Development and Reform Commission (NDRC) and the National Energy Administration issued a notice on the printing and distribution of the "New-Type Energy Storage Large-Scale Construction Special Action Plan (2025–2027)," explicitly listing solid-state batteries as a key technology for development. The plan aims to promote their large-scale development through technological breakthroughs, demonstration applications, and standard establishment. The policy targets the large-scale application of semi-solid-state batteries by 2027, with all-solid-state battery technology finalized, helping to achieve new-type energy storage installations exceeding 180 million kW and driving direct investment of approximately 250 billion yuan.

The "Action Plan for the Large-Scale Construction of New-Type Energy Storage (2025–2027)" (hereinafter referred to as the "Plan") is a key policy document in China's efforts to promote the industrialisation and large-scale application of new-type energy storage technologies. In light of industry trends and policy directions, the positioning, technological pathways, application scenarios, and development goals of solid-state batteries can be interpreted from the following perspectives:

I. Policy Positioning: Solid-State Batteries as the Core Direction for Breakthroughs in New-Type Energy Storage Technologies
The Plan lists solid-state batteries as a key area for the diversified development of new-type energy storage intrinsic technologies, explicitly stating the need to "support the iterative upgrading of mature technologies such as lithium batteries and sodium-ion batteries, with a focus on advanced energy storage lithium battery products such as large-capacity, high-safety energy storage batteries and solid-state batteries for energy storage." This positioning reflects the strategic value of solid-state batteries in enhancing the safety, energy density, and cycle life of energy storage systems.
Specific policy support includes:
Specialized Technology Development Initiatives: Eight departments, including the MIIT, have established a specialized initiative in the Action Plan for High-Quality Development of the New-Type Energy Storage Manufacturing Industry to promote the R&D of key materials for solid-state batteries (e.g., sulphide/oxide electrolytes, high-nickel cathodes) and manufacturing processes (e.g., dry electrode, hot pressing encapsulation).
Demonstration Project Construction: Encouragement is given to the demonstration and application of solid-state battery energy storage systems in scenarios such as new energy bases, power grid side, and user side. For example, Guangdong has completed construction of the world's first 314Ah large-capacity semi-solid-state energy storage battery production line, primarily serving urban user-side energy storage.
Standard System Development: Acceleration of the formulation of safety standards for solid-state battery energy storage systems (e.g., thermal runaway protection, cycle life testing) and promotion of their alignment with standards for power grid dispatching, fire protection regulations, etc.
II. Technology Pathway: Semi-Solid-State Batteries Lead the Way, with Accelerated R&D for All-Solid-State Batteries
According to the Plan and industry practices, the technological development of solid-state batteries in the ESS sector follows a dual-track strategy of "semi-solid-state transition and all-solid-state breakthrough":
1. Semi-Solid-State Batteries (Scaled Application from 2025 to 2027)
Technical Characteristics: Adoption of a hybrid system combining "liquid electrolyte + solid-state electrolyte interface," retaining a portion of liquid electrolyte to reduce interfacial impedance while enhancing safety and energy density.
Policy Support:
The MIIT provides specialized subsidies for energy storage systems equipped with semi-solid-state batteries. For instance, the "Project Solicitation and Leadership" initiative by the Science and Technology Department of Inner Mongolia requires semi-solid-state energy storage batteries to have a monomer energy density of ≥180Wh/kg, a cycle life of ≥10,000 cycles, and support for 5C-rate discharge. The first semi-solid-state ESS battery production line in Guangdong has commenced mass production of 314Ah products, with thermal runaway trigger time increased by 40% compared to traditional batteries, suitable for scenarios such as power generation and grid side and industrial and commercial ESS.
2. All-Solid-State Battery (Technology Finalization and Small-Scale Mass Production Expected After 2027)
Technical Features: Fully utilizes solid-state electrolytes, with a theoretical energy density exceeding 400 Wh/kg, cycle life over 3,000 cycles, and significantly improved thermal stability.
Policy Direction: The MIIT's "14th Five-Year Plan" major R&D initiative for solid-state batteries has allocated 6 billion yuan, focusing on core technology breakthroughs such as sulfide electrolytes and lithium metal anodes. Top-tier enterprises like CATL and BYD plan to establish all-solid-state battery pilot production lines by 2027, targeting an energy density of ≥400 Wh/kg and a 15% cost reduction compared to liquid batteries.III. Application Scenarios: Multi-Domain Penetration with Focused Breakthroughs in Grid-Side and User-Side ESS
The Plan proposes that solid-state batteries must meet "multi-time-scale and multi-application-scenario demands." Based on technical characteristics and policy support, their application scenarios can be categorized into three main types:

1. Grid-Side ESS
Core Requirements: Peak shaving and frequency regulation, renewable energy consumption, and grid stability support.
Technical Alignment:
Semi-solid-state batteries, with high cycle life (≥10,000 cycles) and high C-rate discharge capability (5C), are suitable for coordinated thermal storage and new energy base supporting ESS.
All-solid-state batteries, due to their high safety (non-flammable and non-explosive), can be deployed at grid hub substations in densely populated areas.

2. User-Side ESS
Core Requirements: Peak-valley arbitrage, emergency power supply, and distributed energy management.
Technical Advantages:
Semi-solid-state batteries (e.g., Guangdong Weilan’s 314Ah product) can reduce footprint by 30% in urban industrial and commercial ESS applications and meet stringent fire safety regulations for indoor energy storage.
All-solid-state batteries, with high energy density (≥400 Wh/kg), are suitable for space- and safety-sensitive scenarios such as data centers and 5G base stations.

3. Power Supply-Side ESS
Core Requirements: Supporting wind and solar power bases and smoothing output fluctuations.
Technical Potential:
Semi-solid-state batteries can achieve over 90% energy storage system integration efficiency through "modular design + smart string" technology.
All-solid-state batteries maintain ≥80% energy retention in extreme environments (e.g., -30°C), making them suitable for wind and solar resource-rich regions like Northwest and Northeast China.

IV. Development Goals: Achieving Large-Scale Application by 2027 with Significant Improvement in Technical Economics
Although the Plan does not directly set installation targets for solid-state batteries, it implicitly outlines a development path through technical indicators and industrial policies:

Technical Performance Goals:
Semi-Solid-State ESS Batteries: Monomer energy density ≥180 Wh/kg, cycle life ≥10,000 cycles, and levelized cost of electricity ≤0.2 yuan/kWh (excluding charging fees).
All-Solid-State ESS Batteries: Monomer energy density ≥300 Wh/kg, cycle life ≥3,000 cycles, and cost reduction of 15% compared to liquid batteries. Industrialisation Goals:
2025–2027: Establish more than 10 GW-level semi-solid-state ESS battery production sites, capturing over 40% of the global market share.
Post-2027: All-solid-state batteries enter small-batch production, achieving a penetration rate of 5%–8% in the ESS sector, replacing some lead-acid batteries and flow batteries.

V. Challenges and Responses: Breaking Through Technical Bottlenecks and Improving the Industrial Ecosystem
1. Technical Challenges
High interfacial impedance: Poor contact between solid-state electrolytes and electrodes leads to reduced charge and discharge efficiency, which must be addressed through nano-composite electrolytes (e.g., Li₆PS₅Cl@Al₂O₃) and interface modification techniques (e.g., atomic layer deposition).
High costs: The synthesis cost of sulphide electrolytes is five times that of liquid electrolytes, necessitating cost reduction through large-scale production (e.g., an annual production line of 100,000 mt of sulphide electrolytes) and the establishment of recycling systems.

2. Policy Responses
Industry chain collaboration: The MIIT promotes coordination across the entire chain of "materials–battery cells–systems–recycling," with enterprises such as Shanghai Xiba and XTC New Energy Materials (Xiamen) jointly developing mass production processes for sulphide electrolytes.
Market mechanism innovation: Allow solid-state battery ESS projects to participate in the ancillary services market, generating revenue through services such as frequency regulation and backup power, shortening the investment payback period to 6–8 years.

VI. Conclusion: Solid-State Batteries Reshape the ESS Industry Landscape, Driven by Both Policy and Market
The Plan positions solid-state batteries as a core driver for breakthroughs in new-type energy storage technology, promoting their transition from the laboratory to large-scale commercial application through technical research, demonstration projects, and standardisation. From 2025 to 2027, semi-solid-state batteries will achieve large-scale replacement on the power grid and user sides, while all-solid-state batteries will finalise their technical specifications and initiate commercial pilot projects. This process will not only enhance China’s leading position in the global ESS industry chain but also provide critical support for achieving the "dual carbon" goals. Enterprises must seize policy incentives, accelerate technological iteration and capacity planning, and gain a competitive edge in the energy storage revolution.

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Contact: Chaoxing Yang. Thank you!