Recent Achievements in All-Solid-State Battery Industrialization and Continuous Recovery in the Photovoltaic Industry Chain
On March 24, 2025, China Energy Network reported that Zhongyin Securities has released its weekly report on the electric equipment and new energy industry for the third week of March. The report highlights the recent achievements in the industrialization of all-solid-state batteries and the ongoing recovery of prices across the photovoltaic industry chain.
Photovoltaic Industry Update: The various segments of the photovoltaic industry chain continue to experience price increases, with 210R silicon wafers and solar cells seeing significant price hikes. Supply-side reforms are being actively pursued, as the Central Economic Work Conference has emphasized the need to address excessive competition within the industry. This is expected to strengthen the reforms in the photovoltaic supply chain. Given the dynamics of supply and demand, we anticipate that the current price increases will have a certain degree of sustainability, although the persistent demand after June needs to be considered. Key focus areas include the optimization of the silicon material and cell sectors, the enhancement of profitability among leading enterprises, and the increased penetration of new metallization technologies by 2025.
Wind Power Insights: The domestic bidding and construction for both offshore and onshore wind projects are expected to progress steadily, with demand in 2025 likely to drive profitability recovery across the complete machinery and component sectors. Concurrently, domestic project bidding, declining overseas interest rates, and project planning advancements are contributing to robust foreign and export demand. It is advisable to prioritize investments in machinery and casting segments that are expected to see improved profitability, benefiting from the logic of offshore wind and exports.
New Energy Vehicles: The government has proposed a strong push for the development of smart and connected new energy vehicles, with expectations for high annual sales growth, thereby increasing demand for batteries and materials. Recently, some material sectors have seen price increases due to supply and demand factors, potentially leading to a rebound in profitability, with 2025 expected to witness concurrent growth in volume and profit.
Emerging Technologies: The industrialization of solid-state batteries is gaining momentum, with potential large-scale production expected by 2027. Companies involved in battery, material, and equipment sectors that have made significant investments in related fields are likely to benefit. It is recommended to focus on segments with favorable structures, especially battery cells, as well as certain midstream material segments with integrated layouts and expanding overseas client bases.
Electric Equipment Sector: The ongoing push for electricity system reform in China is anticipated to accelerate the construction of ultra-high voltage and main grid infrastructures, maintaining high demand for related grid equipment. There is also strong overseas demand for grid renovations. It is advisable to monitor investments related to main grid segments benefiting from high demand in ultra-high voltage technologies and those with overseas business strategies in distribution networks.
Hydrogen Energy Developments: Policies are continuously promoting the industrialization of hydrogen energy, with applications for green hydrogen in chemicals, alcohol, ammonia, and other sectors expected to open up new opportunities. Investors should pay attention to electrolyzer manufacturers with cost and technological advantages, as well as fuel cell companies and enterprises involved in hydrogen storage, transportation, and refueling infrastructure development.
We maintain a strong market rating for the industry. This week, the electric equipment and new energy sectors experienced a decline of 1.72%. Among them, the wind power sector increased by 6.44%, while nuclear power grew by 1.74%. The new energy vehicle index fell by 1.00%, the photovoltaic sector decreased by 1.20%, the lithium battery index dropped by 2.08%, power generation equipment fell by 2.89%, and industrial automation declined by 3.77%.
Key Industry Information This Week: In the new energy vehicle sector, the industrialization process of new technologies such as all-solid-state batteries was announced, with large-scale vehicle testing expected to begin in 2027. BYD has introduced a new generation of “Super e-platform technology,” with flash charging capabilities allowing a range of 400 km in just 5 minutes, first implemented in the Han L and Tang L models. NIO has established a strategic partnership with CATL for battery swapping. Tesla’s Shanghai energy storage super factory has officially exported its first batch of Megapack energy storage systems to Australia, with subsequent supplies planned for the domestic and Asia-Pacific markets.
In the photovoltaic and wind power sectors, the National Energy Administration has released a notification to further enhance the implementation of the “Thousand Households Under the Sun” initiative. From January to February 2025, the installed photovoltaic capacity reached 39.47 GW, marking a year-on-year increase of 7.49%. The National Development and Reform Commission, along with other departments, has issued opinions to promote the high-quality development of the green electricity certificate market, aiming to enhance the scale of green electricity trading and clarify mandatory consumption requirements for green certificates while improving the trading mechanism.
Company Highlights This Week: EVE Energy has been designated as a supplier for XPeng’s flying car. Huayou Cobalt’s subsidiary has established a strategic cooperation with Weilan New Energy in the field of solid-state batteries. Junda Co. reported a projected net loss of 591 million yuan for 2024, a year-on-year decrease of 172.47%. China National Materials Technology anticipates a net profit of 892 million yuan for 2024, down 59.89%. Haili Wind Power plans to invest in a second phase of its offshore high-end equipment manufacturing export base, with total investments of 2.5 billion yuan, covering an area of approximately 680 acres and expecting an annual production of 300,000 tons of high-end marine engineering equipment upon reaching capacity. Tianji Co.’s wholly-owned subsidiary Xintai Materials has received approval to resume production following a fire incident. Changlan Technology expects a net profit of 74.68 million yuan for 2024, a year-on-year increase of 3.53%. Hailu Heavy Industry forecasts a net profit of 377 million yuan for 2024, up 10.86% year-on-year.
Risk Warnings: Potential for unexpected price competition, risks associated with international trade disputes, declining investment growth rates, policies not meeting expectations, fluctuations in raw material prices, and risks related to technological iterations.
