Summary of Solid-State Battery Industry Conference Call Industry Overview - The solid-state battery industry is developing in a coordinated manner both domestically and internationally, with significant collaborations such as Samsung SDI partnering with BMW and Solid Power, and Solid Power working with SK On on pilot lines [1][2][6] - Domestic manufacturers like the Chinese Academy of Sciences, Seiko Power, and leading companies C and B have made progress, with some achieving 60-80 Ah products and pilot line capacities reaching gigawatt-hour levels [1][2][6] Key Developments - The Ministry of Industry and Information Technology (MIIT) is providing subsidies for solid-state battery R&D, with mid-term review results expected in November, indicating that leading companies have met core indicators [1][4] - The second batch of subsidies is anticipated to be released in the first half of next year, with amounts expected to be similar to the previous year [1][4] Technological Advancements - The shift to dry processing in solid-state battery manufacturing significantly impacts equipment companies, increasing demand for dry mixing and fiberization equipment, as well as rolling machines, which have seen price increases [1][5] - Isostatic pressing equipment is crucial for addressing interface contact and conductivity issues in solid-state batteries, with companies like Sweden's Quintus and China's Chuanxi Machinery leading in this area [1][5][7] Equipment and Manufacturing Processes - There are four main process routes for insulation glue frames: screen printing, pre-fabricated glue frame transfer, dispensing, and UV printing, with companies like Liyuanheng and DeLong Laser making advancements in these areas [1][9] - The demand for high-pressure forming and filling equipment has increased due to the need for extreme pressures (60-80 tons) in solid-state batteries, with companies like Hangke Technology being key players in this segment [1][10] Company Performance and Outlook - XianDao Intelligent secured over 400 million yuan in solid-state orders in the first half of the year, expecting to exceed 1 billion yuan for the full year, reflecting successful R&D investments [3][11] - Liyuanheng and Haimuxing are progressing well, with Haimuxing's new order growth doubling, although they expect losses this year but anticipate profitability starting next year [3][12] - Naknor's new rolling press equipment addresses material bonding issues and is participating in tenders from leading battery manufacturers [3][13] - Lianying Laser is positioned to benefit from increased precision requirements in solid-state welding, with potential for significant growth if breakthroughs are achieved [3][14] Market Trends - The lithium battery industry is recovering from previous downturns, with several catalysts for growth including policy reviews, subsidy follow-ups, and increasing demand for power and energy storage [1][15] - Most lithium battery companies have overcome their most challenging periods, with expectations for continuous improvement in financial reports [1][15]

Core Viewpoint - The article discusses the recent suspension of export controls by both the U.S. and China regarding lithium battery-related products, highlighting the implications for the lithium battery industry and global supply chains [4][6][8]. Industry Overview - The lithium battery industry in 2025 is characterized by a "high-end shortage and mid-to-low-end surplus" situation, with few companies capable of mass production and export of batteries with energy density ≥300Wh/kg [7]. - The U.S. lithium battery industry heavily relies on Chinese products and materials, with China holding a significant share in the global production capacity of key lithium battery materials [7]. Policy Changes - The U.S. has paused the implementation of its 50% penetration rule for one year, while China has also suspended its related export controls for the same duration, allowing for a potential easing of trade tensions [4][6]. - The Chinese export control measures, which were set to take effect on November 8, 2025, included a "technical-level" review for lithium battery exports, specifically targeting high-end technologies and critical equipment [6]. Market Impact - The policy adjustments provide a buffer for cooperation between the U.S. and Chinese lithium battery industries and offer a time window for global supply chain adjustments [8]. - Since 2025, China's lithium-ion battery exports have been on the rise, with Europe and Southeast Asia emerging as significant markets [9].

Core Viewpoint - China has announced export controls on high-performance lithium batteries and key materials, which could significantly impact the U.S. supply chain and its energy infrastructure [1][5][6] Group 1: Export Controls and Their Scope - Starting November 8, China will implement export controls on high-performance lithium batteries, production equipment, and essential materials such as anode and cathode materials [1][3] - The control list includes lithium-ion batteries with energy density over 300Wh/kg, graphite anode materials, and specific production equipment like stacking machines and continuous graphitization furnaces, creating a nearly closed-loop technical system [3][5] Group 2: Impact on the U.S. Market - Approximately 65% of lithium-ion batteries for grid-level energy storage in the U.S. are imported from China, and these batteries are included in the new export controls [4][5] - The energy supply issue is becoming a critical constraint for AI data centers in the U.S., with electricity consumption in data centers doubling from 2017 to 2023 [4] - The export controls could severely pressure U.S. companies reliant on Chinese battery components, as evidenced by significant stock price drops for companies like Fluence Energy and Tesla [5][6] Group 3: Broader Implications - China's export restrictions highlight its dominant position in the global supply chain for critical materials, with approximately 96% of global anode material production and 85% of cathode material production sourced from China [5][6] - The measures reflect China's strategic response to U.S. tariffs and trade pressures, targeting vulnerabilities in the U.S. industrial chain [6]

Group 1 - The Chinese government has announced export controls on lithium batteries, cathode materials, graphite anode materials, and related equipment, marking the first time lithium manufacturing equipment has been included in such regulations [1][2] - The export controls will take effect on November 8 and cover the entire industry chain from key materials to core equipment, aiming to regulate high-end technology while balancing national security and industrial competitiveness [1][2] - The controls specifically target high-end lithium battery products with an energy density of ≥300Wh/kg, focusing on next-generation technologies like semi-solid and solid-state batteries, while mainstream liquid batteries (around 260Wh/kg) are not affected [2] Group 2 - Leading companies in the lithium battery equipment sector, such as HaiMuxing, have demonstrated resilience and strategic stability in response to the policy changes, indicating that the export controls do not prohibit exports but require a license application [3] - Companies like XianDao Intelligent express optimism, noting that their overseas orders primarily come from domestic battery manufacturers and are not subject to the new controls [3] - Industry experts suggest that while the immediate impact of the export controls is limited, they will promote a healthier, more localized, and strategically controlled industry chain in the long term, potentially benefiting compliant and globally experienced leading companies [3]

Group 1 - China's Ministry of Commerce and General Administration of Customs announced export controls on lithium battery-related materials and equipment, marking the first time such controls have been explicitly applied to lithium manufacturing equipment [1] - The export controls will take effect on November 8 and cover the entire industry chain from key materials to core equipment, aiming to regulate high-end technology while balancing national security and industrial competitiveness [1][2] - The controls specifically target high-end lithium battery products with an energy density of ≥300Wh/kg, focusing on next-generation technologies like semi-solid and solid-state batteries, while mainstream liquid batteries (around 260Wh/kg) are not affected [2] Group 2 - Leading companies in the lithium battery equipment sector, such as HaiMuxing and XianDao Intelligent, have shown resilience and strategic stability in response to the policy changes, indicating that the export controls do not equate to a ban on exports [3] - Companies can still apply for export licenses, although the time and financial costs associated with exporting may increase [2][3] - The long-term impact of the export controls is expected to drive the industry towards healthier, more localized, and strategically controlled development, with top companies likely to gain more stable overseas market shares and better profitability [3]

Core Viewpoint - The announcement by the Ministry of Commerce and the General Administration of Customs of China outlines new export controls on specific items related to lithium batteries and their components, effective from November 8, 2025, to safeguard national security and fulfill international obligations [9]. Group 1: Lithium Battery-Related Items - Export controls are imposed on rechargeable lithium-ion batteries with a weight energy density of 300 Wh/kg or greater, including cells and battery packs [1]. - Equipment used for manufacturing rechargeable lithium-ion batteries, such as winding machines, stacking machines, and liquid injection machines, is also subject to export controls [2]. - Technologies for producing controlled lithium-ion battery items are included in the export restrictions [2]. Group 2: Cathode Materials - Export controls apply to lithium iron phosphate cathode materials with a packing density of 2.5 g/cm3 or greater and a specific capacity of 156 mAh/g or greater [3]. - Precursor materials for ternary cathodes, including nickel-cobalt-manganese hydroxide and nickel-cobalt-aluminum hydroxide, are also regulated [4]. - Lithium-rich manganese-based cathode materials are included in the export control list [5]. Group 3: Anode Materials - Export controls are established for artificial graphite anode materials and mixed anode materials made from artificial and natural graphite [10]. - Equipment for producing graphite anode materials, such as granulation and graphitization equipment, is subject to export restrictions [10]. Group 4: Export Compliance Requirements - Exporters must apply for licenses from the Ministry of Commerce for the controlled items and ensure the authenticity of the declared goods [8]. - Customs will question the completeness and accuracy of the reported information, and goods will not be released during the questioning period if there are doubts about the authenticity [8].

Summary of Solid-State Battery Equipment Conference Call Industry Overview - The solid-state battery technology landscape is diverse, with China shifting from oxide to sulfide halide systems, although most technologies remain below pilot production levels [1][2] - Companies are establishing experimental and pilot lines based on their capabilities, with production capacities increasing sequentially [1] Key Points and Arguments - **Technology Routes**: The solid-state battery equipment technology route is not yet standardized, with disagreements on dry vs. wet methods. Leading companies prefer a holistic approach to material and preparation methods, generally favoring wet methods for anodes and dry methods for cathodes [1][4] - **Production Capacity**: Experimental lines produce a few samples daily for initial testing, while pilot lines can produce dozens of consistent samples for further performance validation. Pilot lines are close to mass production levels [4] - **Core Equipment**: Key equipment for dry processing includes air flow pulverizers, twin-screw extruders, and high mixers. Challenges include ensuring uniform material dispersion, preventing particle agglomeration, and enhancing fiber strength and process stability [5][6] - **Market Equipment**: The market lacks specialized fiberization equipment, relying on high mixers and blending machines that require extensive customization to meet battery material specifications [8] - **Dynamic Assessment**: The Ministry of Industry and Information Technology (MIIT) employs a dynamic assessment mechanism for solid-state battery projects, requiring companies to meet specific production targets by year-end to avoid elimination from funding support [3][26] Additional Important Insights - **Roll Press Machines**: These machines are used to form sheets from powders but face challenges in transitioning from constant to differential rolling speeds and enhancing roller hardness and corrosion resistance [3][10] - **Transfer Equipment**: Various techniques such as thermal transfer, rolling transfer, and 3D printing are used to create ultra-thin electrolyte films between electrodes. 3D printing is still primarily in experimental stages due to lower production efficiency [12][13] - **Gluing Frame Printing**: This technology is essential for maintaining spacing between electrodes in solid-state batteries, with several implementation routes available, including screen printing and 3D printing [14][15] - **Client Base**: The company’s main clients include automotive manufacturers, energy storage companies, and leading battery cell manufacturers, with a significant portion of orders coming from battery cell companies due to their involvement in national projects [25] Conclusion The solid-state battery equipment industry is evolving with various technological challenges and opportunities. The focus on dynamic assessments by regulatory bodies and the need for specialized equipment highlight the competitive landscape and the importance of innovation in this sector.

Summary of Solid-State Battery Industry Conference Call Industry Overview - The solid-state battery industry is currently experiencing significant growth, driven by a 6 billion RMB research fund from the Ministry of Industry and Information Technology (MIIT) aimed at promoting industrialization by 2027 [1][2][7] - The industry is at a critical phase for technology implementation and equipment introduction, indicating a substantial increase in equipment orders this year [1][2] Key Points and Arguments - **Production Process Changes**: - The solid-state battery production process has shifted to dry coating for the anode preparation, eliminating the need for wet baking, which reduces costs and solvent usage [1][4] - The integration of cell modules now utilizes stacking machines and isostatic pressing technology to enhance energy density and address interface issues [1][5] - **Equipment Value and Supply Chain**: - The value of equipment in the solid-state battery sector is increasing, with high entry barriers for new suppliers, indicating greater elasticity in equipment demand [1][6] - The investment cost for solid-state battery equipment is currently 2 to 3 times higher than traditional liquid batteries, with an estimated 300 million RMB investment per GW demand [15] - **Market Dynamics**: - The solid-state battery market is expected to see a penetration rate of approximately 4% by 2030, with demand reaching around 212 GWh [3][12] - By 2040, the penetration rate could rise to 20%, and by 2050, it may reach 45% [3][12] - **Challenges in Manufacturing**: - The manufacturing process faces challenges such as high pressure requirements for isostatic pressing equipment and difficulties in welding and packaging [10] - The formation and conditioning processes require increased temperature and pressure, which complicates the production [10] Additional Important Insights - **Investment and Order Expectations**: - From 2026 to 2030, a significant increase in production capacity is anticipated, with over 200 GWh of new capacity expected, primarily concentrated in 2029 and 2030 [14] - The overall demand for lithium battery equipment is projected to reach 53.3 billion RMB by 2030, with a compound annual growth rate of 151% [15] - **Market Segmentation**: - The lithium battery equipment market is segmented into front-end, mid-end, and back-end production lines, with front-end equipment accounting for 30% to 35% of the total value [16] - Key areas of focus include dry electrode technology and isostatic pressing equipment, which are crucial for industry advancement [16] - **Company Progress**: - Several companies, including Dazhu, Liyuanheng, and Haiwuxing, have already secured significant orders in the solid-state battery sector, indicating a shift towards large-scale production [17][18] - **Material Systems**: - Attention should also be given to material systems, particularly lithium sulfide and sulfide materials, as they are expected to play a critical role in the industry's evolution [19] This summary encapsulates the key insights and developments within the solid-state battery industry as discussed in the conference call, highlighting the ongoing transformation and future potential of this sector.

Summary of Solid-State Battery Industry Conference Call Industry Overview - The solid-state battery equipment industry is entering a new cycle, with a recovery in liquid battery demand expected in 2025, leading to a projected 50% year-on-year growth in orders for lithium battery equipment companies, with some companies seeing orders double [1][4] - Companies such as Galaxy, XianDao Intelligent, and XingYun Co. are performing well in the solid-state battery equipment sector, with positive second-quarter performance expectations and anticipated deliveries of related equipment [1][5] Key Points and Arguments - The transition to solid-state battery technology will drive a new wave of growth, with full solid-state battery solutions needing to address cost, safety, and energy density [1][7] - The production process for solid-state batteries is shifting towards dry processing, with increased precision requirements for dry rolling, which is expected to increase the number of rolls from four to as many as sixteen [1][9] - The demand for stacking machines has become essential in solid-state battery production, leading to increased needs for front-end technologies such as glue frame printing and composite transfer [1][11] - Isostatic pressing equipment is being utilized to enhance the contact between solid-state battery components, improving density and reducing lithium dendrite growth [1][12] Equipment and Technology Developments - The initial charging and discharging processes are expected to see a 3 to 5 times increase in the formation and capacity stages, necessitating higher performance testing equipment [2][14] - The solid-state battery equipment sector exhibits significant elasticity, with the value of equipment for solid-state batteries expected to at least double compared to liquid batteries during initial mass production [3] Market Dynamics - The solid-state battery industry is anticipated to see substantial advancements in 2025, with a recovery phase for liquid batteries and a new cycle for lithium battery equipment driven by technological updates [4][16] - Key companies to watch in the lithium-ion and solid-state lithium-ion supply chain include Nako, Honggong, and leading firms in traditional and emerging solid-state fields such as Lianying Laser and Galaxy Technology [15] Material Developments - Lithium sulfide and metal anodes are identified as strong long-term material development directions, with significant market potential if production costs can be reduced [17][19] - The market for lithium sulfide is projected to be lucrative, with potential profits reaching 1.5 to 2 billion yuan at lower price points [19] - The development of lithium metal anodes is gaining attention, with breakthroughs expected to allow their application in semi-solid and liquid batteries [20] Additional Insights - Emulsions as a cost-reduction strategy and rigid skeleton membranes for electrolyte film processes are emerging as potential growth areas [21] - The performance of ternary cathode materials is improving due to solid-state technology, with companies actively progressing in high-pressure samples [22]

Investment Rating - The report maintains a "Strong Buy" rating for the power equipment industry, indicating a positive outlook for investment opportunities in this sector [5]. Core Insights - Solid-state batteries offer significant advantages over traditional liquid lithium batteries, including higher safety and energy density, marking a crucial direction for the lithium battery industry's upgrade. With national policy support and accelerated corporate layouts, solid-state batteries are entering a rapid development phase, with a broad market space anticipated in the future. Solid-state battery equipment, being part of the upstream segment of the lithium battery supply chain, is expected to benefit first during the mass production process [1][2]. Summary by Sections Conventional Lithium Battery Equipment - The value distribution of conventional lithium battery equipment is heavily weighted towards the front and middle segments, with coating and winding machines being the core equipment. The market share of front, middle, and back-end equipment in China is 44.05%, 35.71%, and 20.24% respectively, with coating machines accounting for about 75% of the front-end equipment value and winding machines for 70% of the middle segment [2][15]. Solid-State Battery Equipment - The differences between solid-state battery equipment and conventional lithium battery equipment are concentrated in the front and middle segments. The front-end involves dry electrode technology, which is expected to be applied, with roller press equipment being critical. The middle segment is suitable for stacking processes, with isostatic presses playing a significant role [2][18]. Front-End Equipment - The dry electrode process is a new electrode preparation technology that offers low cost, high efficiency, and environmental benefits. It eliminates the use of organic solvents, reducing risks of side reactions with solid electrolytes and enhancing compatibility. The dry electrode process consists of four main steps: dry mixing, dry coating, rolling, and cutting, with rolling being crucial for the performance of the electrode sheets [3][28]. Middle-End Equipment - Solid-state batteries face "solid-solid" interface issues that affect performance. The introduction of isostatic presses is expected to enhance material density and address interface gaps and impedance issues. The stacking assembly process is more compatible with solid-state batteries, which may lead to increased penetration of stacking machines in production lines [4][22]. Back-End Equipment - The back-end processes for solid-state batteries are similar to those for conventional lithium batteries, primarily requiring upgrades in equipment performance parameters. High-voltage formation and capacity testing machines are anticipated to replace conventional liquid injection machines [8][26]. Investment Recommendations - The acceleration of solid-state battery industrialization is expected to boost demand for equipment as downstream battery manufacturers increase investments. Key segments for equipment upgrades include the front-end dry electrode process and the middle-end isostatic presses. Companies with leading technology and comprehensive layouts in these core segments are recommended for investment [9][24].