Core Viewpoint - The lithium sulfide sector is experiencing significant growth, with companies ramping up production capabilities and advancements in solid-state battery technology, indicating a faster-than-expected demand increase for lithium sulfide in the coming years [4][10]. Group 1: Industry Developments - Tianqi Lithium announced the commencement of a pilot project for a 50-ton lithium sulfide production line in Sichuan, emphasizing low risk and rapid mass production capabilities [2]. - Enjie Co. reported the completion of a pilot line for high-purity lithium sulfide, with a capacity of 100 tons, and has established a 10-ton solid-state electrolyte production line [2]. - Shanghai Xiba has acquired relevant assets related to lithium sulfide and plans to expand production through joint ventures [2]. Group 2: Market Demand and Projections - The demand for lithium sulfide is projected to reach a hundred-ton level by 2025, with expectations of a shift to a thousand-ton level by 2026, indicating a faster growth trajectory than previously anticipated [4]. - The industry is witnessing a surge in interest in sulfide solid-state batteries, with multiple companies, including Yiwei Lithium Energy and Guoxuan High-Tech, disclosing advancements in their solid-state battery products [3]. Group 3: Production and Purity Challenges - Lithium sulfide constitutes 77% to 80% of the cost of solid-state electrolytes, with current market prices ranging from 3 million to 4 million yuan per ton, making cost reduction critical for the commercialization of solid-state batteries [6]. - High purity lithium sulfide is essential for producing high-performance solid-state electrolytes, with impurities adversely affecting ionic conductivity and posing safety risks [7]. - The current market purity levels for lithium sulfide range from 99.5% to 99.9%, with advancements being made towards achieving 99.99% purity by domestic companies [8]. Group 4: Technological Approaches - Different companies are adopting varied production methods for lithium sulfide, including the hydrogen sulfide neutralization method, which has achieved scale and is represented by Shanghai Xiba [12]. - The liquid-phase method is being pursued by companies like Tianqi Materials and Huasheng Lithium, leveraging their expertise in electrolyte and fine chemical production [14]. - The lithium-sulfur direct solid-phase method, favored by major lithium companies, is noted for its high purity output but faces challenges in scalability due to the high cost of lithium metal [15][16]. Group 5: Equipment and Process Challenges - The production of lithium sulfide is constrained by the need for specialized equipment that can handle its corrosive nature and sensitivity to moisture and oxygen [18]. - Current industry practices involve three main equipment solutions, with the hydrogen sulfide-hydroxide method leading in terms of engineering capabilities and cost reduction potential [18].