According to incomplete statistics, eight battery manufacturers have already established pilot production lines totaling 0.3GWh capacity. Previously, the challenge was scientific feasibility - whether sulfide materials could be successfully produced. Now, with ionic conductivity, particle size, and purity reaching liquid electrolyte levels, the scientific hurdles have been largely overcome. The focus has shifted to engineering challenges - how to achieve mass production. With pilot lines becoming operational, catalysts for orders, equipment, and materials are emerging. Industry analysts predict that once GWh-scale production lines come online next year, another wave of market momentum will follow, potentially making next year even more dynamic than this year.

**Materials Sector: Electrolytes - The Only Value-Add Component**

For 1GWh of solid-state batteries, electrolyte value amounts to 600 million yuan. Even with a 90% future cost reduction, it would still be worth 60 million yuan - three times more expensive than current liquid electrolytes. Based on a global market of 4,000GWh, this represents a 240 billion yuan opportunity pool. Companies that establish early leadership could see market value multiples beyond just one or two times growth.

Currently, two sulfide electrolyte production processes are most recognized: wet processing (Huasheng Lithium and Tinci Materials) and gas-solid separation method (Shanghai Xiba). Wet processing excels in continuity and low costs - if Huasheng's samples to CATL meet purity standards, the logic becomes compelling. Shanghai Xiba has achieved ton-scale shipments with the fastest progress, delivering 5 tons last year and completing last year's full-year volume in just two quarters this year, with the largest sample delivery scale.

From a valuation perspective, Xiamen Tungsten New Energy offers attractive pricing but limited upside potential. However, if Huasheng and Tinci's technological routes prove successful, the risk-reward ratio could be substantial.

Copper foil will evolve alongside electrolytes, with nickel-plated copper foil, porous copper foil, and HVLP high-frequency foil taking turns. Defu Technology's acquired Luxembourg facility had low capacity utilization last year, but HVLP sold 200 tons in March this year, with 3,000 tons annually contributing 200 million yuan profit. Next year's 10,000-ton capacity could generate 800 million yuan net profit - visible elasticity. Nord Stock is also preparing for turnaround through ultra-thin and nickel-plated technologies.

However, copper foil ranks behind electrolytes in priority, as its value increase magnitude doesn't match that of electrolytes.

**Cathode Materials Show Unexpected Signal**

This year brought an unexpected development: Rongbai Technology announced that CATL plans to use lithium-rich manganese-based cathodes by end-2026, directly pushing voltage to 4.45V, achieving cost reduction and performance enhancement simultaneously. Lithium-rich manganese-based materials have always been the most challenging, but with this timeline now established, market speculation will inevitably emerge next year. While Rongbai's traditional business weighs on valuation, its dual positioning in sulfide electrolytes and lithium-rich cathodes makes it the purest cathode play in solid-state batteries when valuations correct.

**Equipment Sector**

Equipment stocks shouldn't be viewed through end-game thinking - they benefit from urgency premiums during early expansion phases. Currently, fiber processing equipment is most popular - dry processing that weaves carbon nanotubes and binders into spider-web conductive networks. Honggong Technology can complete in 2 hours what takes other manufacturers 6 hours, earning recognition from CATL and Wanhua.

Rolling mills and laser equipment remain essential. Naco-Noel, Li Yuanheng, and Xianhui Technology are familiar names. Delong Laser has the deepest ties with CATL, providing comprehensive laser scoring insulation, drying, cutting, and cleaning services, with orders jumping from 10 million to 100 million yuan - visible elasticity.

Research institutions note that solid-state batteries, as next-generation high-performance battery technology, attract significant market attention due to their high energy density and safety advantages. Currently, the solid-state battery industry is entering a critical industrialization period, driven by policy support, technological progress, and downstream demand, characterized by rapid market growth, converging technical routes, and expanding application scenarios. Solid-state battery equipment, as the most important upstream segment, will benefit first from the industry's major development.

Investment banks highlight that solid-state batteries offer high safety and energy density, positioning them as the next-generation lithium battery technology direction. With accelerating material innovation and process iteration, solid-state battery industrialization is gaining momentum, creating investment opportunities from technological breakthroughs and industry transformation. The solid-state battery industry chain is expected to launch mainstream market themes, with battery, material, and equipment manufacturers positioned for upward growth trajectories.

**Related Hong Kong-Listed Solid-State Battery Concept Stocks:** CATL (03750), Ganfeng Lithium (01772), Tianqi Lithium (09696), Longpan Technology (02465), Ruipu Lanjun (00666), CALB (03931), BYD (01211), GAC Group (02238), among others.