Zhihui Lithium Sulfide Project Lands in Deyang, Sichuan, Accelerating Solid-State Battery Business Expansion

Securities Daily Reporter Shu Yajiang and Li Wenshan

On March 6, Shenzhen Zhinuo Precision Technology Co., Ltd. (hereinafter referred to as “Zhinuo”) held a signing ceremony with the People’s Government of Daying County, Sichuan Province. The lithium sulfide production base (Phase I) project was officially signed and launched, marking a breakthrough for Daying County in the key materials field of solid-state batteries and adding strong momentum to Suining’s development as a “lithium battery capital.”

Wu Xiongyang, Chairman of Zhinuo, said at the signing ceremony that establishing a lithium sulfide production base is a crucial step for Zhinuo to overcome the bottleneck in the “materials—battery cell” industrialization and to seize the solid-state battery industry track. Daying County, with its advantages in Suining’s “lithium battery capital” industrial cluster, comprehensive resource guarantees, and efficient government services, was the best strategic choice for the company’s layout.

“Currently, Zhinuo has completed strategic investment in Zhejiang Jiugong New Energy Technology Co., Ltd. (hereinafter ‘Zhejiang Jiugong New Energy’), gaining control of the world’s leading full solid-state battery technology solutions based on sulfides. The Phase I project signed this time will establish a standardized lithium sulfide production system, providing stable, high-quality raw materials for large-scale solid-state battery production, and helping the company deeply integrate into Suining’s lithium industry ecosystem,” Wu Xiongyang said.

Solid-state batteries are regarded as the core engine of energy technology revolution and have attracted market attention in recent years. Sulfide solid electrolytes, with high ionic conductivity, excellent interface performance, and process compatibility, have become the mainstream technology choice for all-solid-state batteries. Industry leaders such as CATL, BYD, and Svolt Energy have made strategic layouts in related fields and achieved varying degrees of progress. Globally, foreign giants like Toyota and Samsung are also accelerating related technological breakthroughs and mass production plans.

Bao Rongfu, Deputy Director of Tianfeng Securities Research Institute and Director of the New Materials Research Institute, believes that the industrialization of sulfide solid-state batteries is accelerating. Global battery manufacturers have entered the “engineering sprint” stage, with 2026 to 2027 being critical mass production nodes. Leading domestic and international companies aim to achieve small-scale mass production by 2027. “Scaling up production combined with technological breakthroughs will be key to reducing costs for sulfide solid-state batteries.”

“Solid-state batteries are already here,” said Wu Bin, R&D Director of Zhejiang Jiugong New Energy, in an interview with Securities Daily. He noted that the market demand and industrialization prospects for all-solid-state batteries are now clear. New materials such as sulfide electrolyte raw materials, high-capacity cathode materials, and new equipment like sulfide electrolyte separation devices will become growth points in the industry chain. The technology and process routes for sulfide all-solid-state lithium batteries are converging, focusing on safety, energy density, and cost-effectiveness, and are moving from pilot testing to market application. “Key materials—battery cell manufacturing—application scenarios” collaborative development will be crucial.

Public information shows that Zhinuo is a national high-tech enterprise that has been continuously exploring in the consumer electronics field. Through its affiliated company Shenzhen Zhisheng Energy Technology Co., Ltd. (hereinafter “Shenzhen Zhisheng”), it has entered the solid-state battery materials sector. Zhinuo’s solid-state battery business in the future will mainly focus on eVTOL, high-end industrial drones, humanoid robots, special robots, and wearable devices.

Li Hongjian, General Manager of Shenzhen Zhisheng, told Securities Daily that the company’s lithium sulfide technology features innovation, high purity, large-scale production, and low cost, overcoming the pain points of large-scale production of high-purity lithium sulfide.

“Based on our technological R&D achievements and future market demand, we have formulated a clear plan for large-scale production,” Li Hongjian said. In 2026, they will start a hundred-ton-scale demonstration line for mass production, streamline the entire process, provide samples to customers, and realize batch orders and sales.

It is understood that lithium sulfide business is a key link in Zhinuo’s complete new energy industry chain. The establishment of the lithium sulfide production base (Phase I) will fill the gap in the solid-state battery key materials industry in Daying County, Sichuan Province, and help build a characteristic new chemical materials industry cluster. Next, Zhinuo will leverage its listed company’s capital, technology, and channels to fully promote project construction, strive to become an industry benchmark, and drive upstream and downstream enterprises to gather and develop, contributing more to Suining’s goal of building a “lithium battery capital” and high-quality local economic development.