Structural opportunities continue to unfold!

In the early morning trading today, the solid-state battery sector experienced a remarkable surgeCompanies like Xingyun Co., Fushun Co., Chuan Yi Technology, Shandong Zhanggu, and Longpan Technology hit their upper limits, with gains seen in Liyuanheng and Penghui Energy exceeding 7%. Meanwhile, in Hong Kong's market, Longpan Technology soared by more than 30%, with significant increases also seen in Ruipu Lanjun, BYD Co., and Ganfeng Lithium.

Analysts believe that there are three main positive factors:

Firstly, eight government departments, including the Ministry of Industry and Information Technology, have issued a high-quality development action plan for the new energy storage manufacturing industryThis plan highlights that by 2027, China's new energy storage manufacturing industry will showcase its international competitive advantages, with leading enterprises further expanding their presence, and significant improvements in industrial innovation and overall competitivenessThe focus will be on achieving high-end, intelligent, and green development.

Secondly, Sun Huajun, CTO of BYD Lithium Battery Co. in Shenzhen, revealed at the Second China All-Solid-State Battery Innovation Development Summit Forum that BYD plans to initiate mass demonstration applications for solid-state batteries around 2027, with large-scale deployment expected after 2030.

Thirdly, a research report from Everbright Securities states that the market has underestimated the support provided by solid-state batteries in safety and endurance in the wake of expanding demand for humanoid robots and low-altitude economic applications.

Solid-State Battery Boom

In today's morning session, many of the previously popular stocks began to see a pullback, but solid-state batteries surged instead

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Various stocks including Xingyun Co., Fushun Co., Chuan Yi Technology, Shandong Zhanggu, and Longpan Technology reached their trading limitsThe solid-state battery index experienced a significant rise of over 2%, outperforming the broader market by a substantial margin.

Solid-state battery sectors in both the Hong Kong and US markets also performed strongly.

From a news perspective, the sudden rise of solid-state batteries is related to a collective appearance of positive news.

Recently, the Ministry of Industry and Information Technology and eight other departments have released an action plan for high-quality development in the new energy storage manufacturing industry, aiming for a faster improvement of the industrial systemThe scale of the new energy storage manufacturing industry roughly matches downstream demand, nurturing 3 to 5 ecological leading enterprisesThe concentration of industrial subjects and regional agglomeration has seen a stable formation, alongside continuous improvement of industrial clusters and ecological systemsProduct performance has significantly enhanced, strengthening the capacity for providing new energy storage products and technologies that are safe, reliable, energy-efficient, long-lasting, and economically feasible, thereby increasing the energy conversion efficiency of new energy storage systems.

At the Second China All-Solid-State Battery Innovation Development Summit Forum, BYD's CTO Sun Huajun revealed plans for the mass demonstration of solid-state batteries around 2027, anticipating large-scale deployment after 2030. Recently, innovative companies like Qingtai Energy and Weilan New Energy have also unveiled their timelines for solid-state battery productionAdditionally, GAC Group announced on February 13 that their research on solid-state batteries that utilize third-generation sponge silicon anodes and high surface capacity solid-state cathodes is progressing smoothly, with plans for deployment by 2026.

Solid-state batteries are also riding the wave in the robotics market

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The latest report from Everbright Securities highlighted that the market has underestimated the contributions of solid-state batteries to safety and endurance, especially with the increasing demand for humanoid robots and low-altitude economic applicationsFuture focus will lie in the mass production and cost reduction of solid-state electrolytes and lithium sulfide, while dry electrode processing substantially raises the requirements for rolling presses, with isostatic pressing technology especially suitable for forming lithium sulfide solid electrolytes.

Is a Windfall Taking Shape?

According to incomplete statistics from High-tech Lithium Battery WeChat official account, less than two months into the new year, the total investment in newly signed and environmentally approved solid-state battery-related production projects in China (covering both batteries and materials) has exceeded 10 billion yuanOn February 9, Changan Automobile introduced the "Golden Bell" solid-state battery with an energy density of up to 400 wh/kg; Hyundai plans to release the first prototype of an electric vehicle powered by solid-state batteries by the end of 2025 and plans to showcase its solid-state battery pilot production line to the public in March 2025.

Some brokerage firms are predicting that 2025 might mark the year for large-scale production of solid-state batteries, as continuous progress is made across the industryPredictions indicate that humanoid robots, eVTOLs, and consumer electronics are expected to see substantial increases in their high-end applications of solid-state batteries by 2025, with supportive policies from the Chinese government likely becoming clearer to promote an orderly acceleration of industry development.

CITIC Securities emphasizes that solid-state batteries meet the power requirements of humanoid robots: ① High energy density, providing humanoid robots with longer endurance; ② High safety, maintaining internal structural stability under complex conditions or sudden events like external impact or high temperatures; ③ Long cycle life, ensuring gradual performance degradation, which enhances the functionality and economic viability of humanoid robots; ④ High design flexibility, allowing solid-state batteries to be customized into various shapes and sizes according to the complex mechanical structures and internal layouts of humanoid robots, effectively improving their stability and flexibility.

Minsheng Securities suggests that since January 2024, the solid-state battery industry has seen several significant developments, signaling that this emerging technology is accelerating towards commercialization

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