Core Viewpoint - The lithium battery industry is experiencing sustained growth in shipment volumes, with long-term growth potential remaining robust. The lithium equipment sector is expected to recover and reach an order peak in 2025/2026, driven by a global innovation cycle and significant domestic investment in solid-state batteries exceeding 10 billion [1][2]. Group 1: Lithium Battery Shipment Growth - Global power battery shipments are projected to reach 1285 GWh by 2025, while energy storage battery shipments are expected to hit 481 GWh. By 2030, the combined global power and storage battery capacity could reach 5154 GWh, approximately three times that of 2025, with power batteries expected to reach 3754 GWh and storage batteries 1400 GWh [1][2]. Group 2: Lithium Equipment Industry Recovery - The global lithium equipment industry is forecasted to grow to 49.7 billion yuan in 2025, 81 billion yuan in 2026, and 83.2 billion yuan in 2027, representing year-on-year growth of 12%, 63%, and 3% respectively. The compound annual growth rate (CAGR) from 2025 to 2027 is expected to be 29%, with a long-term CAGR of 13% from 2025 to 2030 [2]. Group 3: Solid-State Battery Innovation Cycle - The global innovation cycle is expected to accelerate the development of solid-state batteries, with over 10 billion yuan planned for investment in China. Solid-state batteries are anticipated to transition from samples to trial production lines starting in 2024, with mass production expected to begin in 2027 [3][4]. Group 4: Production Process Changes - Significant changes are occurring in the production processes, transitioning from wet to dry electrode methods and solid-state technologies. The high-value solid-state battery equipment is expected to enhance the overall scale of lithium equipment, with projections indicating substantial market growth driven by solid-state technology [4]. Group 5: Differentiated Development of Lithium Equipment Companies - Lithium equipment companies are evolving through various development strategies, including cross-industry expansion, platform development, and product category expansion. Companies are diversifying their offerings beyond traditional lithium battery equipment to include related technologies and solutions [5][6].

Core Insights - The report highlights a significant growth trajectory for global battery shipments, with projections indicating that by 2025, global power battery shipments are expected to reach 1285 GWh and energy storage battery shipments are anticipated to reach 481 GWh. By 2030, the combined total is projected to reach 5154 GWh, approximately three times the 2025 figure [1][2]. Group 1: Lithium Battery Market Growth - The lithium battery shipment volume is expected to continue its upward trend, with a long-term growth potential. By 2030, power batteries are projected to reach 3754 GWh and energy storage batteries 1400 GWh [1][2]. - The global lithium battery equipment industry is expected to see a recovery, with significant order peaks anticipated in 2025 and 2026. The estimated market size for the lithium battery equipment industry is projected to reach 497 billion, 810 billion, and 832 billion yuan for the years 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of +12%, +63%, and +3% [2]. Group 2: Solid-State Battery Innovations - The innovation cycle for solid-state batteries is expected to accelerate, with over 10 billion yuan in investment planned in China. Solid-state batteries are projected to transition from sample production to trial lines starting in 2024, with mass production expected to begin in 2027 [3][4]. - The solid-state battery equipment market is anticipated to have a high value, contributing significantly to the overall lithium battery equipment market. By 2030, if solid-state batteries achieve a 5% penetration rate, the market size for lithium battery equipment could reach approximately 1180 billion yuan, with solid-state equipment contributing an incremental market size of about 515 billion yuan [4]. Group 3: Differentiation in Lithium Battery Equipment Companies - Companies in the lithium battery equipment sector are diversifying their development strategies, including cross-industry expansions, platform development, and product line extensions. For instance, companies like Winbond Technology and Xinyu Ren are expanding into related fields and enhancing their product offerings [5]. - There is a recommendation to focus on small and mid-cap companies that are likely to expand their applications in the solid-state battery sector, as well as those that are advancing platform development and diversifying their business models [5].

Investment Rating - The industry investment rating is maintained at "Outperform" [1] Core Viewpoints - The lithium battery equipment sector is experiencing a recovery phase, with significant growth expected in the coming years due to the lithium battery expansion cycle and solid-state battery innovation [3][10] - Global lithium battery shipments are projected to grow significantly, with total shipments expected to reach 1,766 GWh by 2025 and 5,154 GWh by 2030, indicating a robust long-term growth potential [9][35] - The capital expenditure for leading domestic lithium battery manufacturers has shown a positive trend, with a notable increase in spending expected in 2024 and 2025 [14][17] Summary by Sections Lithium Battery Equipment Sector - The global lithium battery equipment market is expected to reach 497 billion CNY in 2025, 810 billion CNY in 2026, and 832 billion CNY in 2027, with a compound annual growth rate (CAGR) of 29% from 2025 to 2027 [3][13] - The solid-state battery innovation cycle is anticipated to accelerate, with significant investments exceeding 10 billion CNY in domestic solid-state battery capacity planned [3][9] - The production processes for solid-state batteries are evolving, with new equipment and technologies being developed to enhance production efficiency [3][9] Market Dynamics - The global lithium battery shipment volume is expected to grow from 209 GWh in 2020 to 1,766 GWh in 2025, reflecting a CAGR of 53% [9][35] - The domestic leading lithium battery manufacturers are expected to see their capital expenditures increase, with a total of 167 billion CNY in capital expenditure recorded in Q4 2024, marking a 4% year-on-year growth [14][17] - The penetration of solid-state battery technology is projected to create a new market segment, with potential revenue contributions of 54 billion CNY in 2026 and 515 billion CNY by 2030 [3][9] Competitive Landscape - The report highlights various development paths for lithium battery equipment companies, including cross-industry expansion, platform development, and product line diversification [3][9] - Companies such as Delong Laser, Xinyuren, and Qiaocheng Ultrasonic are recommended for their potential in the solid-state battery sector, while others like Xian Dao Intelligent and Liyuan Heng are noted for their platform development strategies [3][9]

Market Overview - On August 29, the lithium battery and solid-state battery sectors experienced significant gains, with stocks such as Hanke Technology, Putailai, Dexin Technology, and XianDao Intelligent reaching their daily limit, while CATL rose over 10% [1] Stock Performance - Hanke Technology (688006.SS) latest price: 25.74, up 20.00%, market cap: 15.539 billion - Putailai (603659.SS) latest price: 22.42, up 10.01%, market cap: 47.898 billion - Dexin Technology (603032.SS) latest price: 20.56, up 10.01%, market cap: 4.763 billion - XianDao Intelligent (300450.SZ) latest price: 35.51, up 20.01%, market cap: 55.375 billion - CATL (300750.SZ) latest price: 301.22, up 8.58%, market cap: 1280.827 billion [2] Company Events - XianDao Intelligent reported a net profit of approximately 740 million for the first half of the year, a year-on-year increase of 61.19%, with Q2 net profit growing by 456.29% [3] - Huayu Automotive announced plans to acquire 49% of SAIC Qingtao for 206 million, marking its entry into the solid-state battery sector [4] - TaiLan New Energy signed an agreement for a solid-state battery production base in Hubei, with a projected annual output value exceeding 10 billion [4] - A new industry standard for solid-state battery dimensions has been approved, which will help standardize the sector [4] Industry Insights - Since July 2025, lithium carbonate prices surged from 60,000 to nearly 90,000 per ton due to supply disruptions and market sentiment, highlighting China's high dependency on imported lithium resources [5] - The Chinese passenger vehicle market is expected to continue leading, with significant growth in energy storage batteries, and major lithium battery companies are ramping up capital expenditures [5] - The market share distribution for lithium battery production processes shows that front-end equipment holds the largest share at 44.05%, followed by mid-stage and back-end equipment [5] - Solid-state battery technology is advancing, with several automakers planning to adopt it around 2027, indicating a faster industrialization process [5] - The investment required for solid-state battery production equipment is significantly higher than that for traditional liquid batteries, with costs estimated at 4-6 billion per GWh compared to 2-2.2 billion for liquid batteries [5][6]