Industrialization accelerates! Solid-state batteries active in early trading, leading stocks double within the year

On the morning of March 26, the battery sector opened lower but recovered throughout the day. By the close, the sector rose 1.59%, leading industry sectors in gains. Among individual stocks, Haike New Source rose over 14%, Zhongrui Co. increased over 11%, Shida Shenghua hit the daily limit, Zhongyi Technology and Huasheng Lithium Battery rose over 9%, Tianji Co. gained over 7%, Putailai, Haopeng Technology, and Huabao New Energy rose over 6%, and Fulin Precision, Wuhan Blue Electric, Enjie Co., and Zhenhua New Materials all increased over 4%.

Two Fully Solid-State Batteries Launched

Recently, EVE Energy’s “Longquan No. 3” and “Longquan No. 4” solid-state batteries officially rolled off the production line at their Chengdu facility. This follows the launch of “Longquan No. 2” in September 2025, marking EVE Energy’s continued push toward industrializing solid-state batteries with two major new models.

Image source: EVE Energy official website

Both “Longquan No. 3” and “Longquan No. 4” use sulfide solid electrolyte technology but target different markets.

“Longquan No. 3” focuses on consumer electronics, with an advantage in low-voltage adaptability—operating stably under pressures below 2 MPa. Wang Peng, deputy researcher at the Beijing Academy of Social Sciences, explained that solid-state batteries require external pressure to maintain contact at the solid-solid interface for proper ion conduction. The low-pressure feature means no complex compression structures are needed, making it suitable for slim devices like smartphones and laptops.

“Longquan No. 4” targets the power battery market, with a cell capacity of 60 Ah and a maximum operating pressure of 5 MPa. Power batteries with larger capacity and higher charge/discharge currents need stronger pressure to maintain interface stability, ensuring safety and cycle life. A capacity of 60 Ah already meets basic automotive standards.

However, moving from production to mass vehicle deployment still has hurdles. Wang Peng noted that while “Longquan No. 4” shows initial practical potential, key data such as cycle life, rate performance, and cost have not yet been disclosed. Ouyang Minggao, an academician at the Chinese Academy of Sciences, previously predicted that full solid-state batteries would begin vehicle validation in 2027, with large-scale deployment taking another 5 to 10 years.

Once mass-produced and installed in vehicles, solid-state batteries will have a profound impact on the existing industry chain. Wang Peng believes their high safety and energy density will expand applications beyond new energy vehicles into low-altitude economy, humanoid robots, and high-end equipment. Dongwu Securities analysts pointed out that by 2026, the focus of marginal changes in solid-state batteries will shift from cells to packs, primarily driven by the start of road testing for relevant vehicle models.

Breakthrough in Solid-State Technology Approaching Vehicle Deployment

Dongwu Securities noted that solid-state batteries will enter road testing in 2026, with the marginal shift from cells to packs, recommending close attention to the progress of vehicle testing.

In 2025, the solid-state battery industry accelerated, with automotive-grade cells produced in H1 and pilot lines established in H2, triggering two major upward waves. In 2026, solid-state batteries will enter a critical phase: automotive-grade packs will be produced in H1, with vehicle testing beginning, and mass production lines expected to be established in H2.

The key catalysts in 2026 include the bidding for GWh-scale production lines and the road testing of related vehicle models, which could bring a similar two-wave market rally as in 2025. Investors are advised to focus on leading companies’ production line bidding status and new models that will be registered with the Ministry of Industry and Information Technology.

Image source: China Science and Solid Energy, Dongwu Securities Research Institute estimates

With wide temperature ranges, high energy density, and safety, solid-state batteries are naturally suited for space applications. Space systems face vacuum, extreme temperature differences, and high radiation. Operating temperatures range from -200°C to +150°C, while liquid batteries work between -20°C and +60°C. Solid-state batteries, with their broad temperature tolerance, high safety (non-flammable, radiation-resistant, gas-free), and high energy density, can reduce launch costs and are well-suited for complex space environments. The annual demand for solid-state batteries in satellites could reach tens or even hundreds of GWh, with further applications in deep space probes, lunar bases, and more, expanding the imagination space.

In the A-share market, concept stocks related to solid-state batteries have performed actively this year. According to Eastmoney Choice data, as of midday March 26, Cakou Technology rose over 108%, more than doubling its stock price this year. Far East Co., and Autowell increased by 70%, while Delong Laser, Wanrun New Energy, Titan Co., China Power, Han’s Laser, and Zhongtian Technology all rose over 50%. Additionally, Bozhong Precision, Dingsheng New Materials, Jiemei Technology, Wukuang New Energy, Xiamen Tungsten, and Panneng Technology all gained over 40%.

(Article source: Oriental Fortune Research Center)