Solid-State Battery Weekly Report: China and South Korea Vie for Mass Production "Beachhead," Wuhai ESS Fires the "First Shot" of Commercialization

SMM December 06 News:
Highlights: This week, the solid-state battery sector gained significant momentum, with multiple domestic enterprises achieving key breakthroughs in environmental approvals, sample deliveries, and mass production, while overseas players in South Korea and the United States intensified technological competition. The industry chain advanced simultaneously across all segments—from cathode and anode materials, electrolytes, to battery cell manufacturing—entering a phase of intensive validation and capacity building.

This week, the solid-state battery sector demonstrated distinct characteristics of "dual drivers from policy and capital, multiple technological breakthroughs, and a comprehensive acceleration of industrialisation." Frequent activities were observed both domestically and overseas, with critical progress achieved across all segments of the industry chain.

The price of lithium sulfide remained stable with a slight downward trend this week. Market transactions and shipments remained relatively strong, ranging from several tens to hundreds of kilograms, with an average price of 2,050 yuan/kg.

The price of oxide electrolyte LATP experienced a slight decline, with its application still concentrated in the downstream semi-solid battery industry, averaging 145 yuan/kg.

I. Manufacturing and Projects: From Laboratory to Factory
Major Commencements/Commissioning: Jiugong New Energy's 100MWh pilot line commenced construction (scheduled for commissioning in Q1 2026), and Zhongke Shenlan Huize's polymer solid-state battery project is expected to begin production in Q1 2026, marking the countdown to mass production for specific technological routes.
Capacity Planning and Construction: Chunlithium New Energy's 1GWh solid-state ESS battery project has entered the environmental impact assessment phase, and Gotion High-tech's 2GWh Jinshi all-solid-state mass production line has initiated design work, demonstrating steadfast progress in industrialisation.
Commercial Application Milestone: The Wuhai 200MW/800MWh semi-solid-state battery ESS project of Lvfa Group achieved grid connection, becoming the world's first semi-solid-state ESS project to enter large-scale commercial operation, serving as a significant demonstration.

II. Materials and Supply: Strengthening the Industry Chain Foundation
Electrolyte (Core Bottleneck): The sulfide route has become a focal point. Yanyixin Materials' 500 mt/year sulfide electrolyte production line achieved stable mass production; Xingfa Group is constructing a 10kt-level capacity for the key raw material phosphorus pentasulfide; Canmax and Yahua Group are advancing sample deliveries and pilot line construction for the core raw material lithium sulfide, while Zhongke Guneng's 100 mt-level production line received an award. For the polymer route, China National Petroleum Corporation disclosed two quasi-solid-state electrolyte patents.
Cathode Materials (Diversified Adaptation): Xiangtan Electrochemical is exploring the use of LMO in solid-state systems; Fulin Precision Machining and Easpring Technology confirmed that LFP and high-nickel materials have been introduced in bulk to downstream customers, indicating accelerated compatibility verification of existing material systems with solid-state batteries.
Supporting Materials: Sanfu Xinke launched a new 3D composite current collector product, targeting adaptation needs for solid-state batteries, demonstrating synchronous progress in the supporting industry chain.

III. R&D and Capital: Continuous Optimisation of the Innovation Ecosystem
Platform Operation: Chengdu established the Southwest's first advanced energy materials gene engineering integrated innovation platform, equipped with -60°C dew point control capability, providing robust infrastructure for materials R&D.
Capital Support: Enli Power completed a several hundred million yuan B+ round financing, reflecting the capital market's continued optimism toward the solid-state battery sector.

IV. Overseas Developments: Intensifying Competition and Strategic Alliances
National Strategy: The South Korean government announced an investment of 280 billion won to advance the "K-Battery" solid-state battery plan, aiming to capture 25% of the global market by 2030, shifting from price competition to technological competition.
Corporate Collaboration: US-based Factorial signed an MOU with South Korea's POSCO to jointly develop all-solid-state batteries, combining strengths to accelerate technological breakthroughs. US-based QuantumScape held a seminar in Japan, deepening its regional presence. Summary: This week's developments clearly outlined the current state of the solid-state battery industry: parallel development of technology routes (sulphide/polymer/oxide), collaborative efforts across the upstream and downstream of the industry chain, and a combination of competition and cooperation both domestically and overseas. The industry has moved past the pure R&D phase and entered a critical period of industrialisation focused on pilot testing, capacity building, and commercial application. The successful grid connection of ESS projects and the commissioning of multiple pilot lines suggest that 2026-2027 will be an important window for evaluating the commercial success of solid-state batteries.

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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