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].

Investment Rating - The report maintains a "Positive" outlook on the solid-state battery industry, highlighting its potential as a next-generation battery technology with significant attention from the entire industry chain [4][9]. Core Viewpoints - Solid-state batteries face dual challenges of process and cost, but recent advancements indicate a consensus on mass production by 2027, with key players in the automotive and battery sectors actively releasing products [9][12]. - The manufacturing of solid-state batteries requires a comprehensive reconstruction of equipment and processes due to fundamental differences in material compatibility and bonding logic compared to liquid lithium-ion batteries [21][22]. - Equipment development is crucial for achieving scale production and cost reduction, with dry processing techniques being identified as effective methods for lowering costs and improving efficiency [22][34]. Summary by Sections Industry Overview - The solid-state battery industry is gaining traction, with a clear direction and trend towards mass production by 2027, driven by collaboration across the supply chain [4][9]. Manufacturing Challenges - The transition from laboratory to mass production faces significant technical challenges, particularly in scaling up cell sizes from the current average of 20Ah to the required 60Ah for automotive applications [12][21]. - Key challenges include the stability of material systems, consistency of processes, and safety of systems, all of which impact yield rates, production efficiency, and costs [12][21]. Equipment and Process Innovations - The report emphasizes the need for innovative equipment and processes, particularly in the areas of solid electrolyte film production and interface engineering, to address the unique requirements of solid-state batteries [21][35]. - Dry processing techniques are highlighted as essential for the production of solid-state batteries, offering advantages in efficiency and environmental impact [22][34]. Investment Recommendations - The report suggests focusing on companies that are closely collaborating with clients and have secured orders or achieved delivery in the key equipment sector, such as Naconor (832522), Honggong Technology (301662), and others [4][9].