On January 23, 2026, Shanghai Pylon Energy Technologies Co., Ltd., known as the “first energy storage stock on the STAR Market,” released its annual earnings forecast for 2025.

According to the earnings forecast, during the period from January 1 to December 31, 2025, Pylon Technologies is expected to achieve a net profit attributable to the parent company’s owners of 62 million to 86 million yuan, representing an increase of 20.8927 million to 44.8927 million yuan compared to the same period last year. This translates to a year-on-year growth of 50.82% to 109.21%. However, the estimated net profit attributable to the parent company’s owners after deducting non-recurring gains and losses is projected to be between -12 million and -8 million yuan, compared to -28.1314 million yuan in the same period last year, indicating a narrowing loss scale.

Regarding the primary reasons for the performance growth in this period, the announcement noted that the company benefited from the recovery in demand in the international energy storage market, the sustained growth in domestic energy storage demand, and the rising demand for lithium-ion and sodium-ion batteries in the light electric vehicle market. The company optimized resource allocation in both its sales and research and development sectors. On the one hand, it expanded its sales team and increased market promotion efforts; on the other hand, it accelerated product technology iteration and expedited the launch of new products through improved research and development efficiency. This strategy not only drove rapid growth in overseas commercial and residential energy storage businesses but also led to breakthrough progress in domestic commercial energy storage, shared battery-swapping, and sodium-ion battery applications in the light electric vehicle sector, significantly boosting the company’s production, sales, and revenue scale. Additionally, as the company’s production and sales scale expanded and the operational conditions of some subsidiaries improved, deferred tax assets from unrealized profits in internal transactions increased. Furthermore, deferred tax assets related to deductible losses of certain subsidiaries were recognized, with these multiple factors collectively contributing to the performance growth in this period.

On January 22, CATL launched the “Tianxing II Light Commercial All-Scenario Customized Series Solutions” and its supporting smart management application “Battery Butler” Tianxing Edition. The most notable among these is the Tianxing II Light Commercial Long-Range Battery, which is equipped with the first light commercial ultra-hybrid chemical system cell. This product integrates ternary lithium and lithium iron phosphate materials within the same chemical system.

At a media briefing, CATL’s Chief Technology Officer, Gao Huan, elaborated on the breakthroughs of this technology: “Internally, we refer to this ternary-lithium-iron-phosphate material system as the ultra-hybrid system. It involves mixing battery materials, with the most direct effect being an increase in cell energy density while controlling costs.”

In fact, three months earlier, CATL had jointly released the ultra-hybrid system battery with Leapmotor and announced that it would be installed in Leapmotor’s flagship model, the D19.

Gao Huan stated: “Currently, the highest volumetric energy density of mass-produced lithium iron phosphate materials can reach over 450 watt-hours per liter, while ternary materials start at 500 watt-hours per liter.” When certain vehicle models require batteries with energy densities between 480 and 500 watt-hours per liter, traditional lithium iron phosphate cannot meet the demand, while ternary materials would significantly increase costs.

The emergence of the ultra-hybrid battery aims to fill this gap. It not only breaks through the energy density ceiling of lithium iron phosphate but also avoids the high costs associated with pure ternary lithium.

Today, the new energy vehicle market has increasingly higher requirements for driving range. In 2025, some extended-range vehicles were already equipped with batteries exceeding 60 kWh, and by 2026, multiple models, including Leapmotor’s D series, are expected to feature battery capacities around 80 kWh.

For lithium iron phosphate batteries to achieve a pure electric range exceeding 500 kilometers, more cells often need to be stacked, potentially leading to a vehicle mass exceeding three tons, which affects handling and safety. While ternary lithium batteries can provide higher energy density, cost remains a major barrier to their adoption in the mainstream market.

Solid-state batteries are regarded as the next-generation battery technology direction. According to predictions by Academician Ouyang Minggao of the Chinese Academy of Sciences, the industrialization of all-solid-state batteries may begin between 2027 and 2028, with full-scale mass production expected by 2030. However, solid-state batteries are still several years away from large-scale commercialization, and their cathode materials still primarily rely on high-nickel ternary systems. This creates development space for transitional technologies like the ultra-hybrid battery.

The technical realization of the ultra-hybrid battery is not a simple mix of two materials. Gao Huan admitted at the briefing: “There are numerous technical challenges to overcome, including interface issues between ternary and lithium iron phosphate, voltage platform issues, and electrolyte oxidation-reduction problems, among others.”

This fusion at the material level complements CATL’s earlier “dual-core battery” concept at the system architecture level. At the Super Technology Day in April 2025, CATL launched the Xiaoyao Dual-Core Battery, which achieves performance complementarity by arranging batteries with different chemical systems in separate zones. For example, the combination of sodium-ion and lithium iron phosphate can target extremely cold regions in northern areas, while the combination of ternary lithium and lithium iron phosphate balances high performance with long range.

From the “dual-core” system architecture to the “ultra-hybrid” material level, CATL is breaking the performance boundaries of traditional power batteries across multiple dimensions. Professor Ai Xinping from Wuhan University stated: “Ternary lithium and lithium iron phosphate are not an ‘either-or’ opposing relationship but scenario-based choices based on different technical characteristics.” This view aligns with CATL’s technological strategy.

At the briefing, Gao Huan revealed a key timeline: the large-scale commercial mass production of CATL’s ultra-hybrid battery is expected to begin in April 2026. This means that there are less than three months left before this technology officially enters the market.

CATL’s choice to first introduce the ultra-hybrid battery product in the commercial vehicle sector has its commercial logic. Gao Huan explained: “In intercity delivery scenarios, the required driving range is increasing. Using only ternary materials would make the economics difficult to justify. Additionally, charging is still not very convenient, so we innovatively applied the ultra-hybrid system battery to the commercial vehicle sector.”

It is understood that the Tianxing II Light Commercial Long-Range Battery has a single-pack capacity of 253 kWh, the largest in the light commercial industry. Equipped with this battery, vehicles can achieve a real-world long-range of 800 kilometers, easily covering mainstream intercity routes such as Guangzhou to Fuzhou without the need for mid-journey recharging. Additionally, the battery warranty has been extended to 10 years or 1 million kilometers, and technologies such as self-compensating lithium cathode materials and self-repairing electrolytes are applied to further extend battery life. These characteristics are particularly suitable for commercial vehicle operation scenarios that require high economy and reliability.

Regarding market competition and product mass production pace, Gao Huan stated: “Other companies are also researching ultra-hybrid batteries, but CATL is the first in this field to achieve a mass production breakthrough.”

With the mass production of ultra-hybrid batteries, ternary lithium and lithium iron phosphate materials are no longer an either-or choice but can work synergistically within the same cell, leveraging their respective advantages. From a broader perspective, ultra-hybrid battery technology offers a new development direction for the power battery industry.

As the mass production target of April 2026 approaches, ultra-hybrid batteries will be tested in real commercial environments. Their market performance will depend on various factors, including actual performance, cost control capabilities, and more.

The battery industry has never been short of new concepts. What is truly scarce is the certainty that can be validated within the industry—the ability to guarantee stable supply, sustain a downward cost trajectory, and ensure that safety and consistency withstand the long-term demands of large-scale applications.

According to a December 29, 2025 report by *Caijing* magazine, at its Supplier Conference on December 28, CATL announced that it would deploy sodium-ion batteries on a large scale in 2026 across four major sectors: battery swapping, passenger vehicles, commercial vehicles, and energy storage. This announcement has sparked renewed attention on the commercialization of sodium-ion batteries.

By elevating the priority of sodium-ion batteries at this juncture, CATL’s move signifies more than just adding another technological path. It demonstrates the company’s willingness to first secure confirmed demand, strengthen confirmed delivery capabilities, and solidify confirmed advantages in cost and safety into orders and market share. The value of sodium-ion batteries lies in their faster path to large-scale application, while the value of solid-state batteries lies in their potential to redefine performance ceilings.

CATL’s simultaneous advancement of both paths is essentially a strategy to compete for both near-term orders and long-term pricing power on the same competitive playing field. The next round of competition in the battery industry will no longer be a battle between individual routes or technologies, but rather a prolonged tug-of-war with multiple paths advancing in parallel.

**Sodium-ion Batteries Ride the Wind: A Second Growth Curve**

CATL’s primary motivation for betting on sodium-ion batteries is the sustained high growth in power battery installations over the past year.

According to comprehensive information from Tianyancha media and data released by the China Automotive Battery Innovation Alliance on January 16, 2026, from January to December 2025, the cumulative installed capacity of power batteries in China reached 769.7 GWh, representing a year-on-year increase of 40.4%. Among these, the cumulative installed capacity of ternary batteries was 144.1 GWh, accounting for 18.7% of the total and growing by 3.7% year-on-year. The cumulative installed capacity of lithium iron phosphate (LFP) batteries was 625.3 GWh, accounting for 81.2% of the total and surging by 52.9% year-on-year.

When a single technology route dominates the market to such a high degree, industry growth can more easily devolve into homogeneous competition. To protect their market share, companies must offer differentiated supply capabilities, going beyond mere capacity expansion and price cuts. On April 21, 2025, at CATL’s inaugural “Super Tech Day,” the company framed the mass production of its new sodium-ion batteries as “effectively reducing dependence on lithium resources, solidifying the foundation of new energy, and advancing energy utilization from ‘reliance on a single resource’ towards ‘energy freedom.'” It simultaneously demonstrated the batteries’ applicability across full scenarios including passenger vehicles, commercial vehicles, and energy storage, highlighting the advantages of its sodium-ion battery in extremely cold environments.

For CATL, sodium-ion technology is not just a single product; it represents an entry point into a new supply chain.

The cost of lithium-ion batteries often fluctuates with upstream resource prices. Sodium-ion batteries offer greater elasticity in resource availability, making it easier for manufacturers to establish more controllable supply capabilities for materials and, consequently, form a stable pricing advantage based on cost. The expansion of energy storage scenarios is further propelling the rise of sodium-ion batteries. Currently, energy storage demand is less sensitive to energy density compared to passenger vehicles but more sensitive to low-temperature performance, safety margins, cycle life, and places greater emphasis on system and operational costs.

For instance, as reported by Xinhua News Agency on October 8, 2025, the second-phase expansion and upgrade project of the Fulin Sodium-ion Battery Energy Storage Station in Wuming District, Nanning City, Guangxi, was officially put into operation. Since its initial operation in May 2024, the first phase of the project has cumulatively stored and released over 1.3 million kilowatt-hours of green electricity, playing a significant role in grid regulation and renewable energy consumption. The significance of such projects lies in sodium-ion batteries first gaining scale and reputation on the grid-side and industrial/commercial energy storage side.

From this perspective, once sodium-ion batteries achieve scale in energy storage and commercial vehicle sectors, CATL may possess another replicable growth curve, providing a relatively stable source of incremental revenue when lithium-ion battery prices fluctuate or profit margins in certain scenarios contract.

Of course, the practical challenges of sodium-ion batteries remain, primarily concerning energy density and scaled-up costs.

For sodium-ion batteries to make significant inroads into the mainstream passenger vehicle segment, continuous optimization is needed in the balance between energy density, system integration efficiency, and cost. By betting on sodium-ion technology, CATL is essentially betting that its engineering and manufacturing prowess can gradually address these issues and translate them into stable orders.

**Spot Supply vs. Futures Frenzy**

The difference between sodium-ion and solid-state batteries is first reflected in their industrial readiness. The advantage of sodium-ion lies in its faster path to scalable supply. Its key value often comes from solving practical pain points, such as low-temperature usability, safety margins, and cost stability, making it easier to generate large-scale orders in scenarios like energy storage and commercial vehicles. Solid-state batteries, in contrast, are more like a challenge to performance limits, pursuing higher energy density, stronger safety margins, and better fast-charging potential, but face significantly higher difficulties from materials to manufacturing.

In this sense, sodium-ion batteries resemble spot supply, while solid-state batteries are more akin to forward-looking expectations.

According to publicly available information from Tianyancha and data from Gaogong Industry Institute (GGII), the effective production capacity of sodium-ion battery enterprises is expected to reach approximately 19 GWh, 25 GWh, and 60 GWh in 2023, 2024, and 2025, respectively. In terms of shipments, 2025 is projected to see a jump to around 20 GWh, exceeding 200 GWh by 2030. Sodium-ion batteries can more quickly provide deliverable system solutions and generate actual operational data in energy storage projects and certain transportation scenarios. Solid-state batteries, however, are more readily used by capital and markets as an imagination space for future valuation, especially when industry competition intensifies and profits for single products shrink. Solid-state often serves as a narrative for more distant growth stories.

CATL’s push for sodium-ion batteries carries industrial significance not in negating solid-state, but in re-prioritizing the power battery landscape. As long as sodium-ion batteries can rapidly scale in scenarios like energy storage and commercial vehicles, they will create a new procurement stratification for downstream customers: near-term demand would be met by sodium-ion and LFP batteries, while solid-state caters more to high-end and long-term needs. Consequently, for solid-state batteries to achieve the same procurement priority, they must present more definitive mass production timelines and competitive cost curves.

Viewed through the lens of industrial competition, CATL is not the sole major player in solid-state batteries; this market is already full of pioneers. However, judging from its heavy bet on sodium-ion batteries, its strategic layout—including that for solid-state—determines its tactical trade-offs within a certain period. For example, public reports show that some manufacturers have provided clearer progress and supply potential for semi-solid-state routes. This indicates that solid-state is not merely a concept; it is more likely to first enter high-end and small-scale applications in a semi-solid-state form before gradually progressing towards higher solid content or full solid-state.

This re-prioritization of power battery technologies is already becoming evident. According to the CATL Investor Relations Activity Record (No. 2025-005, dated October 20, 2025), the company’s combined shipments of power and energy storage batteries in the third quarter of 2025 were close to 180 GWh, with energy storage accounting for approximately 20%. It noted, “The company’s released Sodium New Battery has passed the new national standard certification,” and that “Sodium New passenger vehicle power batteries are under development and implementation with customers, with progress proceeding smoothly.” From this perspective, sodium-ion batteries also represent an expansion of CATL’s own boundaries.

Therefore, once sodium-ion batteries become a certain incremental contributor, their significance extends far beyond adding a new product line. They essentially set a “discount benchmark” based on present cash flows for the valuation of “long-term futures” like solid-state batteries. Just as financial markets must discount future earnings to present value using an interest rate, the large-scale delivery and stable cash flow of sodium-ion batteries in sectors like energy storage and commercial vehicles provide a referencable risk-free rate.

From this point on, the premium space for solid-state batteries will face a dual assessment: one based on their long-term technological potential ceiling, and the other based on their short- to medium-term industrialization progress and cost curve. The narrative for solid-state must shift from “why it’s possible” to “when and at what price it can be delivered,” and must withstand pressure under the realities of industrialization.

**A Variable Emerges in the ‘One Superpower, Multiple Strong Players’ Energy Landscape**

CATL’s heavy bet on sodium-ion batteries does not aim to push solid-state off the table, but rather to redirect industry resources from single-line expectations back to delivery competition.

For solid-state batteries to maintain high expectations, they need to convince customers with clearer mass production schedules, cost curves, and more stable supply plans. Sodium-ion batteries, meanwhile, need to prove their practical value with longer-term operational data, larger-scale supply volumes, and more stable full life-cycle costs.

With one hand betting heavily on sodium-ion and the other not letting go of solid-state, CATL’s approach resembles a race for industry dominance rather than a single-technology gamble.

Sodium-ion batteries are closer to the immediate incremental demand in energy storage and some commercial scenarios, while solid-state batteries are closer to the long-term ticket for high-end performance and next-generation platforms. Pursuing both in parallel shifts the mainline competition from waiting for a single endgame to a complex game field where multiple technological routes, various commercial scenarios, and several leading players operate simultaneously.

As sodium-ion batteries achieve widespread adoption in multiple points like energy storage, commercial vehicle auxiliary power, and low-speed power, the industry structure will transition from the lithium-ion era of “one superpower, multiple strong players” to a new form characterized by “one superpower, multiple strong players” superimposed with multi-route racing. CATL’s large-scale deployment of sodium-ion batteries essentially involves securing positions ahead of time at the cost inflection point for energy storage and incremental scenarios, while the main battlefield is still dominated by LFP and ternary batteries, simultaneously reducing dependence on the cycle of a single resource.

According to publicly available information from Tianyancha and a November 21, 2025 report by *Cailian Press*, at the Gaogong Lithium Battery Annual Conference, Bai Houshan, Chairman of Ronbay Technology, stated that the development trend of batteries is towards non-rare, non-critical, and inexpensive materials. He predicted that by 2035, the ratio of LFP batteries to sodium-ion batteries would be 4:6. By then, the demand for LFP cathode materials would reach 15 million tons, and the demand for sodium-ion battery cathode materials would reach 20 million tons.

Competition is rapidly heating up. The aforementioned *Cailian Press* report pointed out that on July 16, 2025, BYD officially announced the commencement of production at its sodium-ion battery production line in Xining, Qinghai. On September 24, 2025, Eve Energy’s first large-capacity sodium-ion battery energy storage system successfully completed grid-connected adjust at its Jingmen base, officially transitioning to commercial operation.

Earlier, on April 29, 2025, *Economic Information Daily* reported that HiNa Battery released its sodium-ion battery commercial vehicle solution, signaling the product’s move from demonstration to the daily operation of power stations, placing greater emphasis on cell system efficiency, operational costs, and long-term reliability.

For CATL, the increase in industry participants naturally raises the competitive threshold. Once sodium-ion batteries enter the regular operation of power systems and industrial/commercial energy storage, customer requirements for supply stability and full life-cycle service will quickly approach those of mature lithium-ion energy storage. Moreover, while advancing both sodium-ion and solid-state lines, CATL also needs to maintain the scale advantage of its LFP and energy storage businesses. With LFP’s share in the domestic installation structure reaching 81.2%, any fluctuations in supply stability or the cost curve will be magnified by the market.

For vehicle manufacturers and energy storage customers, the parallel development of multiple routes means procurement portfolios will be more diversified, with pricing power relying more on comprehensive delivery capabilities and full life-cycle costs rather than a single metric. For battery companies, multi-route parallel development implies more complex capacity allocation and material supply. By betting on a full matrix, CATL is actively choosing to vie for dominance in a more complex competitive environment. The ultimate outcome is more likely to be determined collectively by scale delivery, cost reduction speed, customer acceptance, and localization capabilities, rather than by a single breakthrough in any one technology.

**In Conclusion**

Sodium-ion and solid-state batteries are not in a relationship of mutual replacement; they are more like two commercial paths on different timelines.

Sodium-ion defines priority based on real-world demand, while solid-state defines the imagination space based on performance ceilings. By revealing its strategy at this moment, CATL is emphasizing the tangible, scalable delivery metrics of sodium-ion at a time when the industry is being pulled by long-term visions, while simultaneously retaining its long-term chip for solid-state.

What the industry truly needs to focus on is not which route is more advanced, but which one can achieve stable supply faster, establish long-term advantages in cost and safety, and foster sustained repurchases and stronger stickiness at the customer level.

Once sodium-ion batteries achieve scale in energy storage and commercial scenarios, expectations for solid-state will rely more heavily on deliverable timelines,no longer relying solely on concepts and technological experiments themselves. This will also become a significant watershed in the next round of competition in the battery industry.

Both power battery packs and energy storage battery packs typically contain dozens or even hundreds of internal cells. To manage such a large number of cells, the Battery Management System (BMS) has become an indispensable key technology.

It can be said that the BMS is the “brain” of the battery pack. Its functions are to ensure personnel and battery safety, meet power or energy storage requirements, and extend battery life.

01 Core Functions of BMS

The core function of BMS is to monitor battery voltage, temperature, and current in real-time, optimize battery performance through State of Charge (SOC) estimation and balancing control, while also possessing fault protection functions such as overvoltage, overcurrent, and overtemperature protection.

Estimating the state of the cells is the core function of the BMS. Achieving this function requires an Analog Front-End (AFE) chip (for voltage acquisition), Hall sensors (for current acquisition), NTC sensors (for temperature acquisition), and other sensors (for acquiring gas pressure, smoke, etc.).

After acquiring the signals, they are combined with electrochemical models and advanced estimation algorithms (such as Extended Kalman Filter, Sliding Mode Observer, etc.) to estimate the battery’s State of Charge (SOC), State of Health (SOH), State of Power (SOP), State of Energy (SOE), and State of Safety (SOS) in real-time.

Based on these state parameters,

a) For the battery pack itself:

The BMS controls and manages the optimization of the battery’s charge and discharge power, limits charge/discharge duration, and interacts via control commands, communication, and diagnostic functions to achieve effective management of the battery’s internal state.

b) For external systems:

Through communication and diagnostic functions, the BMS disseminates key status information and control commands to the vehicle and charger, ensuring coordinated operation between the battery and external systems.

02 System Architecture of BMS

(1) Centralized and Distributed Architectures

Centralized BMS integrates the three functional modules – the Cell Monitoring Unit (CMC), High Voltage Monitoring Unit (HVMU), and Battery Management Unit (BMU) – onto a single circuit board or an integrated controller, forming a “single-point control” architecture.

Centralized BMS results in a compact system structure, reduced cabling, smaller footprint, and relatively lower overall cost. However, since the high-voltage and low-voltage modules are on the same circuit board, special attention must be paid to electrical isolation and safety clearances.

Distributed BMS delegates the acquisition function down to individual battery modules. Multiple Slave Control Units (CMCs) achieve distributed sampling and preliminary data processing, while the Master Control Unit (BMU/BCU) is responsible for system-level management and scheduling, forming a “multi-point acquisition, centralized processing” architecture. This can meet the requirements of large-capacity battery systems, such as numerous acquisition channels and dispersed module placement.

As can be seen from the figure above, the so-called distributed architecture essentially adds a layer of management sub-systems in the middle. These small systems are primarily responsible for collecting information from a portion of the cells, then reporting it via a bus to the BMS control board. The BMS control board then implements comprehensive protection measures, state-of-charge calculations, and other management functions based on the reported information.

Simply put, it’s similar to the organizational structure of a company. When the number of people increases, flat management becomes unreliable in large-scale battery management systems. Therefore, to share the load of the core management board, some sub-tasks are assigned to CSC modules (Cell Supervision Circuits) for privileged management.

Distributed BMS can be further subdivided into: Star-type Distributed, Bus-type Distributed, and Daisy-chain Distributed.

Star-type Distributed: The BMU is located centrally, with each CMC connected directly to the BMU via an independent communication link. This structure offers independent communication links with strong anti-interference capability. However, it requires a bus concentration module, making wiring and interface management relatively complex.

Bus-type Distributed: Multiple CMCs communicate with the BMU via a CAN bus (currently the most widely used BMS communication method). Since all CMCs share the bus, power consumption among nodes is relatively balanced. However, the system heavily relies on the health of the bus; if the bus fails, overall communication may be interrupted.

Daisy-chain Distributed: Multiple CMCs are connected in series in a chain, with data transmitted hop-by-hop along the link to the BMU. This structure offers a simple communication link, saving wiring resources. It is suitable for systems with many modules and a clearly layered battery structure.

(2) Functional Layering

To ensure modularity, scalability, and high reliability, BMS can generally be divided into three layers, as shown in the figure below.

a) Physical Layer: Responsible for acquiring directly measurable external states during battery operation, such as voltage, current, surface temperature, etc., providing data support for upper layers.

b) Core Layer: Responsible for estimating internally unmeasurable states of the battery through models and algorithms, such as SOC and internal cell temperature. This is the critical part of the system.

c) Management Layer: Utilizes the internal state information provided by the core layer to achieve reasonable management of battery charging/discharging and prediction of future operating conditions, ensuring safe and efficient battery operation.

03 Hardware Structure of BMS

The BMS hardware architecture is the physical carrier of its system functions. Hardware design directly affects system accuracy, reliability, and cost. A typical BMS hardware design adopts a distributed architecture, mainly including the Master Control Unit (BMU), Slave Control Units (CSCs), sensor networks, and actuation/protection circuits.

(1) Master Control Unit

Main Control MCU: A high-performance processor supporting ASIL-D functional safety level.
Memory: Flash memory stores parameter configurations and fault logs; RAM is used for real-time data buffering.
Isolated Power Supply: Supplies power to the BMU through a DC/DC isolation module (input voltage is often 12V/24V, output is 3.3V/5V).
Communication Interfaces: CAN transceivers, Ethernet PHY chips.

(2) Slave Control Units

AFE Chips: Dedicated Analog Front-End chips for monitoring series-connected cells.
Voltage Sampling Circuit: Multiplexer switch + precision ADC, using differential sampling to reduce noise.
Temperature Acquisition Circuit: NTC thermistor + voltage divider network, or digital temperature sensors.
Balancing Circuit: Passive balancing: MOSFET + power resistor; Active balancing: Bidirectional DC/DC or capacitor arrays.

(3) Sensors

Hall Sensors: Non-contact measurement, accuracy ±0.5% (used for total current detection).
Shunt Resistors: Low-cost current detection solution, achieving ±0.5% accuracy when paired with a differential amplifier.
Temperature Sensors: NTC/PTC sensors placed at key locations such as cell surfaces, busbars, and heat sinks.

(4) Actuation and Protection Circuits

Relays and Pre-charge Circuit:
Main Relays: High-voltage DC relays controlling the battery pack’s charge/discharge circuit.
Pre-charge Circuit: Uses a pre-charge resistor + contactor for soft-start, preventing inrush current during power-on.
Fuses and Circuit Breakers:
Main Fuse: Fast-acting type for short-circuit fault protection.
Secondary Protection: Resettable fuses (PPTC) to prevent localized overcurrent.

Recently, the Exeed brand under Chery held a brand night event in Beijing themed “New Advancement, New Exeed.” During the event, the Exeed brand emphasized that “in 2026, Exeed will be the first to validate the installation of the Rhinoceros all-solid-state battery in vehicles.”

According to media reports, the Exeed brand plans to equip its upcoming “Liefeng” shooting brake model with all-solid-state batteries this year. This battery is said to enable the “Liefeng” to achieve a range of 1,500 kilometers in low-temperature environments as cold as -30°C.

**Exeed Brand’s First Shooting Brake Coupe Model**

It is understood that the “Liefeng” is the first shooting brake coupe model to be launched by Chery’s Exeed brand, targeting the high-end market. It is expected to enter mass production equipped with all-solid-state batteries in 2026.

The vehicle features a low-slung and streamlined design, with body dimensions of 5,053/2,010/1,560 mm and a wheelbase of 3,100 mm. Its drag coefficient is as low as 0.21 cd, and it comes with frameless doors, a retractable rear spoiler, and 21-inch wheels.

In terms of performance, the “Liefeng” is built on an 800V high-voltage platform and equipped with a dual-motor four-wheel-drive system. It can accelerate from 0 to 100 km/h in 3.3 seconds, with a top speed of 260 km/h, and supports four-wheel steering and air suspension. Its core highlight is the self-developed “Rhinoceros” all-solid-state battery, which boasts an energy density of 600 Wh/kg. It retains 90% of its range at -30°C (with a maximum CLTC range of 1,500 km) and can replenish 400 km of range in just 10 minutes of charging.

The interior features a 15.6-inch central control screen, Harmony ecosystem integration, and a “Queen’s Seat” for the front passenger. With a pre-sale price range of 300,000 to 400,000 yuan, it is positioned as a direct competitor to models like the Tesla Model 3.

**The “Rhinoceros” All-Solid-State Battery**

Currently, polymer, oxide, and sulfide electrolytes are the three mainstream technological pathways in solid-state battery research and development. Chery has chosen to focus on the oxide route.

Veko Network Lithium Battery noted that prior to this, Chery unveiled the Rhinoceros S all-solid-state battery at its 2025 Global Innovation Conference. This battery demonstrates significant breakthroughs in both energy density and safety, marking Chery’s entry into a new competitive phase in the field of power battery technology.

The core technologies of the Rhinoceros S all-solid-state battery are its in-situ polymerized solid-state electrolyte system and lithium-rich manganese cathode material. It supports a maximum fast-charging rate of 6C, with a cell cycle life exceeding 3,000 cycles. It can pass extreme tests such as drill penetration and nail penetration without smoke, thermal runaway, while maintaining normal discharge capabilities.

Specifically, the in-situ polymerized solid-state electrolyte technology completely replaces the flammable liquid electrolyte found in traditional lithium-ion batteries, eliminating the risks of combustion and leakage at their source. This solid-state electrolyte also offers higher mechanical strength, effectively inhibiting lithium dendrite growth and preventing internal short circuits, providing a fundamental guarantee for safety.

Compared to currently commonly used cathode materials, the lithium-rich manganese cathode material offers higher specific capacity and voltage platform, providing the battery with higher energy output. Coupled with the metallic lithium anode made possible within the all-solid-state system, this achieves a leap in energy density.

Chery has formulated a phased implementation plan: operational validation in specific scenarios like ride-hailing services will begin in 2026, with the goal of achieving large-scale mass production in 2027.

Naturally, transitioning from samples to large-scale, stable mass production and vehicle integration, all-solid-state batteries still face challenges such as cost, production processes, and supply chain. The “Rhinoceros” all-solid-state battery is no exception. How the “Liefeng” performs remains to be validated by the market.

For instance, some netizens commented, “Don’t just criticize blindly; once it’s out, you’ll be buying it faster than anyone.” Meanwhile, experts point out that all-solid-state batteries are not “absolutely safe,” and issues such as interface stability, consequences of thermal runaway, and low-temperature performance still require in-depth research.

**Conclusion**

Exeed’s announcement of equipping vehicles with the “Rhinoceros” all-solid-state battery represents a charge by a Chinese automaker toward the ultimate goal of battery technology. This is not just a technological innovation for Chery but also a landmark event signaling the intensification of the industrialization race for all-solid-state batteries.

Whether the vehicle validation in 2026 successfully ushers in a new era or reveals more practical challenges that need to be overcome, its significance extends beyond mere marketing. It powerfully declares that the battle to explore the performance boundaries of electric vehicles has begun. The ultimate technological solutions addressing the three core pain points—”safety, range, and charging”—are accelerating from research papers and laboratories toward real-world testing grounds.

For the entire industry, this will be a valuable early-stage practice. Every step of progress and feedback regarding all-solid-state batteries will lay the foundation for their eventual true mass-market adoption.

The future of all-solid-state batteries is becoming increasingly clear and closer through such repeated “vehicle installation declarations.”

Amidst the current market focus on 2025 performance and rankings, Chuneng New Energy not only delivered impressive 2025 results but also secured a major new order.

On the evening of January 16th, Chuneng New Energy announced that it had signed a strategic cooperation agreement with Egyptian local companies WeaCan and Kemet at its global headquarters, aiming to deepen collaboration in the Egyptian energy storage market.

Chuneng New Energy Chairman Dai Deming and Kemet Board Chairman Ahmed Salaheldin Abdelwahab Elabd signed the agreement on behalf of their respective companies. The signing ceremony was witnessed by Egyptian government representatives, including Moustafa Kamal Esmat Mahmoud, Minister of Electricity and Renewable Energy of the Egyptian Ministry of Electricity, as well as senior executives from related enterprises.

According to the agreement, WeaCan and Kemet, as key facilitators for project implementation, will leverage their extensive local industry resources and mature project operation experience in Egypt. They will be fully responsible for application scenario, government approval coordination, grid connection support, and localized operation services, providing a solid foundation for the large-scale deployment of Chuneng’s energy storage products. As the core technology and product supplier, Chuneng will supply a total of 6GWh of high-quality energy storage products in phases, ensuring their safe and stable operation within the Egyptian power system, while offering full-cycle technical support services.

It is reported that Egypt, located on the eastern edge of the Sahara Desert, enjoys abundant solar and wind energy year-round, providing natural conditions for developing “photovoltaic, wind power + energy storage.” In recent years, Egypt has actively promoted energy structure transformation, explicitly aiming to increase the share of renewable energy generation to 42% by 2030. The country has already completed several hundred-megawatt-level energy storage demonstration projects and plans to add over 10GWh of grid-side energy storage capacity. With market demand rapidly expanding, the energy storage industry is poised to enter a period of high-speed growth.

Chuneng New Energy stated that this procurement cooperation for 6GWh of energy storage products not only marks a significant breakthrough for the company in the North African market but also represents a concrete practice of green energy cooperation between China and Egypt under the framework of the “Belt and Road” initiative. Upon completion, the project will effectively enhance the local grid’s peak shaving and frequency regulation capabilities, promote the large-scale grid integration and consumption of clean energy such as photovoltaics, and assist Egypt in building a more flexible, reliable, and low-carbon new power system.

Background information shows that Chuneng New Energy was established in August 2021 in Xiaogan City, Hubei Province. It focuses on the R&D, production, and sales of new energy storage batteries, power batteries, and energy management systems.

In the energy storage sector, Chuneng’s energy storage business has reached over 60 countries and regions worldwide. Specifically, the company has established four core regional service centers globally, covering China, Europe, North America, and Australia, forming a localized service support system that radiates worldwide. This enables comprehensive lifecycle service coverage, from product delivery to technical consulting, installation and commissioning, and operational maintenance support.

Regarding its 2025 performance, statistics show that Chuneng New Energy achieved an annual shipment volume exceeding 90GWh in 2025, with its brand’s international influence continuing to rise!

On January 14, Enjie Co., Ltd. announced updates regarding its all-solid-state battery materials. Its subsidiary, Hunan Enjie Advanced New Material Technology Co., Ltd., focuses on developing high-purity lithium sulfide, sulfide solid-state electrolytes, and related membranes. The company has completed a pilot line for high-purity lithium sulfide and started operations on a 10-ton solid-state electrolyte production line, which is now ready for shipments. Future expansion will depend on market demand.

Enjie noted that the price of lithium sulfide has room to fall as technology, processes, and the supply chain mature, and as production scales up. For instance, if manufacturers using the hydrogen sulfide or sulfur source routes solve their scaling challenges, costs will decrease. Enjie’s own carbon thermal reduction method also scales well, and larger production volumes will lower costs further.

The domestic equipment market is mature. Existing equipment can produce sulfide solid-state electrolytes with only customized modifications for sulfide properties. There are no major equipment bottlenecks. Regarding capacity, the company currently operates a 10-ton annual production line for electrolytes. It will time any expansion according to downstream demand.

Lithium sulfide production follows three main routes:

1. Solid-phase (carbon thermal reduction): Safe and suitable for mass production. It can use modified lithium iron phosphate production equipment and is compatible with cathode material production. A drawback is incomplete reduction of carbon and lithium sulfate.

2. Gas-phase: Features low reaction temperature and a simple process. However, hydrogen sulfide is flammable, toxic, and explosive. Equipment needs custom design similar to silicon-carbon anode lines, making scaling difficult.

3. Liquid-phase: Can use retrofitted solid-phase or electrolyte equipment. Downsides include solvent evaporation, strict environmental approval for toxic solvents like NMP, and high residual solvent content.

Wet-process separator capacity utilization remains high due to strong demand, especially from the energy storage market. Enjie is committed to supplying high-quality separators and services globally. The company expects wet-process separator demand to grow through 2026, alongside rising needs for energy storage and power batteries.

At the beginning of 2026, lithium carbonate futures once again captured attention with a sustained price surge. On January 9, the main contract for lithium carbonate closed at 143,420 yuan per ton, accumulating an increase of over 120% from the low of 59,900 yuan per ton on June 5, 2025, marking a new high since November 2023.

This price, approaching the 150,000 yuan per ton mark, has become the most notable “price anchor” in the new energy industry chain, directly impacting both upstream and downstream sectors.

Short-Term Supply Shortage and Full-Throttle Demand Drive Lithium Prices Upward

“The demand from 2025 to now can be described as full throttle: new energy vehicle sales have grown by over 30% year-on-year, power battery installations have increased by more than 40%, and the energy storage market has become an absolute dark horse, with domestic project bidding volumes doubling and overseas orders surging simultaneously. Its production share is catching up to that of power batteries, and leading companies have already filled their order books into 2026,” remarked a capital market analyst regarding the driving factors behind this round of lithium carbonate price increases.

In the view of one industry insider, a mismatch between supply and demand has further intensified short-term supply tightness. “On January 4 this year, the State Council issued a document proposing, in principle, no further approvals for mineral processing projects without self-owned mines or supporting tailings utilization and disposal facilities. Key expansion projects such as Ganfeng Lithium’s Cauchari-Olaroz salt lake lithium extraction project in Argentina and Tianqi Lithium’s second-phase project in Suining, Sichuan, are still ramping up and are unable to contribute significant supply in the short term. Additionally, concentrated maintenance at lithium iron phosphate (LFP) enterprises before the Chinese New Year led to production reductions.”

Furthermore, the “Solid Waste Comprehensive Management Action Plan” released by the State Council on December 27, 2025, added another layer of policy constraints on industry costs, potentially further raising operational expenses for companies in the near term. On January 7 this year, four ministries including the Ministry of Industry and Information Technology (MIIT) jointly held a symposium to address irrational competition in the lithium battery industry, explicitly emphasizing strict control over redundant construction and curbing low-price dumping. This policy direction has shifted market expectations regarding industry overcapacity, further fueling the rise in lithium prices.

Rising Raw Material Prices Prompt Top Battery Firms to Lock in Costs with Long-Term Agreements

In response to rising raw material prices, battery manufacturers are taking various countermeasures. Some leading companies have already announced price adjustments. For instance, Suzhou Dejia Energy Technology Co., Ltd. recently announced a 15% price increase for its battery product series.

More importantly, a supply chain restructuring centered on “long-term agreements” is unfolding, making the differentiation within the battery industry chain increasingly pronounced. Leading companies, leveraging their scale advantages and supply chain control, are building competitive moats by signing long-term agreements with price linkage clauses to lock in costs.

Current long-term contracts in the industry generally move away from rigid fixed-price models, adopting dynamic pricing mechanisms such as “linked to the SMM index + cost range,” allowing price fluctuations of 10% to 15%, and incorporating flexible volume adjustment clauses to cope with market volatility.

An industry insider gave examples: The supplementary agreement between Longpan Technology and Chuneng New Energy stipulates total sales exceeding 45 billion yuan from 2025 to 2030, while Tianci Materials has committed to supplying 725,000 tons of electrolyte to CALB from 2026 to 2028. Such large-scale long-term agreements typically include technology binding and price linkage clauses.

Difficulty Entering Core Supply Chains Accelerates Shakeout of Smaller Battery Firms

An industry analyst pointed out that this deep binding model ensures resource supply for leading battery companies while excluding second- and third-tier battery manufacturers from core supply chains, signaling an impending new round of industry consolidation.

“Medium to long term, the massive demand from the global new energy vehicle and energy storage markets will accelerate the exit of low-quality capacity, driving resources and orders to concentrate among leading and vertically integrated enterprises,” the analyst noted. “The proportion of profitable enterprises in the LFP sector is only 16.7%, significantly lower than other core lithium battery materials like ternary cathode and anode materials. From 2023 to Q3 2025, five listed LFP companies accumulated losses exceeding 10.9 billion yuan.”

In 2025, the CR10 (combined market share of the top ten companies) in China’s battery industry increased from 65% to 75%, with leading firms expanding their market share through mergers and acquisitions. Small and medium-sized manufacturers with annual production capacity below 5 GWh are being phased out at an accelerated pace, while the CR5 of leading companies surpassed 50%.

Recently, Salt Lake Co., Ltd. disclosed an asset acquisition plan, proposing to acquire a 51% stake in Wukuang Salt Lake from its controlling shareholder, China Salt Lake, for 4.605 billion yuan in cash. A week earlier, Chengxin Lithium Group announced plans to acquire a 30% stake in Qicheng Mining through its wholly-owned subsidiary for 2.08 billion yuan in cash. These M&A activities indicate that lithium mineral resources are once again becoming highly sought after.

“This is not a short-term speculative-driven trend, but a systematic value reassessment based on genuine supply and demand, cost structures, and industry influence,” commented one industry insider. “Companies possessing resource barriers, technological depth, production discipline, and customer loyalty are transitioning from ‘price takers’ to ‘rule co-creators.'”

Sodium-Ion Battery Substitution Heats Up in Mid-to-Low-End Energy Storage and Light-Duty Power Applications

Soaring lithium prices are also acting as a “catalyst” for technological iteration, driving the battery industry toward diversification. In mid-to-low-end energy storage and light-duty power applications, sodium-ion batteries, leveraging their “lithium-free” advantage, have achieved mass production, becoming an important alternative to LFP batteries.

Compared to lithium batteries, sodium-ion batteries offer stable material costs, as sodium accounts for 2.3% of the Earth’s crust, and its extraction cost is only 1/20th that of lithium. The cost of cathode material (copper iron manganese oxide) for sodium-ion batteries is 35% lower than that of LFP, and anode material (hard carbon) cost is 40% lower. Additionally, sodium-ion batteries exhibit excellent low-temperature performance, maintaining over 90% capacity at -20°C, perfectly suiting application scenarios like energy storage in extremely cold regions.

Looking back at 2025, investment enthusiasm in the sodium-ion battery sector already surpassed that in solid-state batteries. According to incomplete industry statistics, 28 announced projects with disclosed investment amounts totaled approximately 61.5 billion yuan. Among these, three projects involved investments over 5 billion yuan, and 18 projects had investments exceeding 1 billion yuan. Southwest and East China emerged as primary hubs, planning capacities of 81 GWh and 78 GWh, respectively.

Entering 2026, sodium-ion batteries have reached the critical stage of “capacity ramp-up and market validation.” CATL’s sodium-ion batteries have been installed in batches in models from Chery and Jianghuai, and are penetrating the residential energy storage sector. Penghui Energy’s sodium-ion battery shipments are steadily increasing in the residential energy storage and portable power market. HiNa Battery, leveraging its GWh-level capacity, is solidifying its technological advantage in regional energy storage projects.

Solid-State Battery Development Accelerates; Industry Expects Mass Production Around 2030

It is noteworthy that solid-state batteries, once highly anticipated for their “lithium-free” potential, actually exhibit increased lithium dependency. Industry data shows that lithium usage in solid-state batteries across different technological pathways significantly exceeds that of LFP batteries: sulfide/oxide solid-state batteries require approximately 850 tons of lithium carbonate equivalent (LCE) per GWh, 1.5 times that of LFP batteries (567 tons/GWh); semi-solid-state lithium metal batteries use 1,088 tons LCE/GWh, 1.8 times that of LFP; and all-solid-state lithium metal batteries require up to 1,906 tons LCE/GWh, 3.4 times that of LFP.

Regarding commercialization progress, Qingtao Energy achieved trial production for its solid-state battery-specific materials project in July 2025, with a total planned capacity of 65 GWh, and has established deep partnerships with automakers like SAIC and GAC. Weilan New Energy’s second-generation semi-solid-state batteries achieved mass production in 2025, with plans for all-solid-state battery small-batch installation in vehicles by 2027.

In contrast, early-stage R&D-focused battery companies face greater fundraising difficulties, as capital increasingly favors projects with mature technology and proven production capabilities, making the industry’s “Matthew Effect” more pronounced.

According to industry experts, mass production of solid-state battery technology is expected around 2030. Although its development will further increase lithium resource demand, high lithium prices also provide impetus for the industry to develop and promote technological routes with relatively lower lithium dependency.

Against the backdrop of lithium carbonate prices approaching 150,000 yuan per ton, the new energy industry chain is undergoing unprecedented restructuring. “When the lithium carbonate price curve turns upward, what truly deserves attention is not the increase itself, but who can transform this price surge into sustainable profits and competitiveness in the new cycle,” interpreted one capital investment analyst. The fluctuation in lithium carbonate prices is not merely an industry “price war”; it is also an accelerator for the sector’s transition from “resource-driven” to “technology-driven.” In this process, only those companies possessing genuine technological strength, resource control, and cost advantages can seize the opportunity in the new cycle.