Futu Securities learned that with technological progress, the application scenarios of solid-state batteries have become more extensive. Lately, top vehicle manufacturers both domestically and abroad have been continuously promoting the research and application of solid-state batteries through cooperation or strategic layouts. Chongqing Changan Automobile, partnering with Tailing New Energy, will hold a solid-state battery technology conference, signaling another potential catalyst for the industry. In addition, the aviation sector is gradually becoming an important solid-state battery deployment scene, and lithium battery equipment manufacturers are actively deploying in the solid-state battery field. TrendForce forecasts that with the mass production competition by global manufacturers, all-solid-state batteries are expected to reach gigawatt-hour level production before 2027. Relevant symbols: Guangzhou Automobile Group (02238), Ganfeng Lithium (01772), BYD Company Limited (01211), Tianqi Lithium Corporation (09696).

With the rapid development of the new energy automobile market, the competition in the power battery industry is becoming increasingly fierce. In this industry context, solid-state batteries, due to their high energy density and excellent safety, are considered the future direction of power battery technology. At this time, leading car manufacturers and representatives of solid-state batteries are jointly conducting a technology release, further signaling the "onboarding" of product mass production.

In August of this year, Chongqing Changan Automobile invested in solid-state battery enterprise Tailing New Energy, with top vehicle manufacturers doubling down on solid-state batteries to explore new directions for the development of new energy vehicle power batteries. On November 7th, Tailing New Energy collaborated with Chongqing Changan Automobile to hold a solid-state battery new technology conference in Chongqing. At that time, the conference will focus on showcasing the innovative results of their joint research and development, expected to achieve new breakthroughs in solid-state battery safety and large-scale applications.

Furthermore, the aviation sector is gradually emerging as an important deployment scene for solid-state batteries. eVTOL has low sensitivity to battery costs and its demand aligns with the performance of solid-state batteries, making it an important deployment scene for such batteries. EHang Intelligent Technology strategically invested in solid-state battery company Xinnengyuan, while Contemporary Amperex Technology successfully tested solid-state batteries in a 4-ton aircraft, paving the way for the gradual application of solid-state batteries in the aviation sector.

It is worth noting that apart from Contemporary Amperex Technology, many power battery manufacturers are actively entering the low-altitude economy sector. Industry-leading lithium battery companies such as EVE Energy Co., Ltd., Chixinghu Innovation Aerospace, Gotion High-Tech, and Farasis Energy (Gan Zhou) Co., Ltd. have all expressed intentions to collaborate in the battery field of low-altitude flights.

In the lithium battery sector, lithium battery equipment manufacturers are actively expanding into the field of solid-state batteries. Recently, equipment manufacturer Hymson Laser Technology Group initiated a strategic cooperation with solid-state battery company Xinnengyuan, securing an order for over 0.4 billion yuan in solid-state battery equipment. Nanocaelum, a leading manufacturer of lithium battery roll pressing equipment, and the workstation of academician Ouyang Ming have reached a cooperation agreement to establish a joint laboratory, dedicating five years to the development of solid-state battery production equipment. Solid-state batteries are poised to initiate the second growth curve for lithium battery equipment manufacturers.

Jibang Consulting recently stated that solid-state batteries, as the next generation technology expected to improve the intrinsic safety and energy density of batteries, have been included in the national development strategies of the United States, the European Union, China, Japan, and South Korea, and will be a key technology to support various countries' secondary battery energy density breakthrough the 500Wh/kg target after 2030. Currently, global leading manufacturers such as Toyota, Nissan, and Samsung SDI have entered the trial production stage of all solid-state batteries. TrendForce Jibang Consulting predicts that with the mass production competition of manufacturers worldwide, all solid-state batteries are expected to achieve gigawatt-hour (GWh) level production before 2027.

Shanxi Securities pointed out that solid-state batteries theoretically have higher energy density, better thermal stability, longer cycle life, and other advantages, and are the future direction for the development of high-capacity secondary batteries. In terms of applications, solid-state batteries have clear application scenarios in high-end long-range vehicle models, e-VTOL, and other areas. China Securities Co., Ltd. predicts that by 2025, the global solid-state battery market space may reach several tens to hundreds of GWhs, worth hundreds of billions of yuan.

China Securities Co., Ltd. released a research report stating that recently, leading vehicle manufacturers have been advancing the development and application of solid-state batteries in the field. In October 2024, top domestic and foreign vehicle manufacturers continuously promoted the R&D and application of solid-state batteries through cooperation or strategic layout. Looking ahead to November, Chongqing Changan Automobile will hold a solid-state battery technology conference with TAILON New Energy, expecting another boost for the industry. In addition, the aviation sector is gradually becoming an important application scene for solid-state batteries, and lithium battery equipment manufacturers are expected to explore the second growth curve in the field of solid-state batteries. Battery manufacturers, solid-state electrolyte companies, and companies related to the solid-state battery industry chain that are deploying solid-state battery business are expected to fully benefit.

China Securities Co., Ltd. recommends focusing on the application expansion of solid-state batteries in the aviation sector, as well as lithium battery equipment manufacturers expected to benefit from solid-state batteries. Three investment themes are suggested: 1) battery companies deploying solid-state batteries; 2) companies related to solid-state electrolyte segments; 3) other important companies in different segments of the solid-state battery industry chain.

Related concept stocks:

Guangzhou Automobile Group (02238): Recently, Guangzhou Automobile Group stated on the investor interaction platform that its solid-state battery research and development achievements have been released in April 2024. It has made key technological breakthroughs in mass production of vehicle-grade high safety and large-capacity solid-state power batteries, with ultra-high energy density, ultra-high safety, and large-capacity solid-state cell core advantages. The company is actively promoting integration into vehicles by 2026.

Ganfeng Lithium Corporation (01772): On March 29 of this year, Ganfeng Lithium Corporation stated in a research summary that the company's Phase I solid-state battery production base in Chongqing has been topped out, and solid-state battery packs have been delivered.

Byd Company Limited (01211): Byd started researching solid-state lithium batteries as early as 2016. Currently, it holds numerous related patents in China, ranking among the top domestically.

Tianqi lithium Corporation (09696): The company's 3 technological achievements in the comprehensive utilization of lithium resources and key core materials for solid-state batteries have been recognized by authoritative institutions to have reached international standards.