With CATL announcing that the energy density of its all-solid-state batteries has surpassed 500 Wh/kg, and both Toyota and Guoxuan High-Tech betting on mass production by 2027, a ‘solid-state storm’ sweeping through the core of the new energy vehicle sector is already upon us. This is not merely a revolution in battery technology, but a reshaping of the entire ‘three-electric’ value chain. In this race for future influence, what technological pathways and strategic positioning should new energy vehicle component manufacturers adopt to secure a central role in this transformation? How will they break through the impasse? And how will they define the future?

In June 2025, an announcement from CATL sent shockwaves through the industry: its all-solid-state battery had achieved an energy density exceeding 500 Wh/kg, with plans for mass production and vehicle installation by 2027, supporting 80 per cent fast charging in 15 minutes and a range of 1,200 kilometres. Toyota followed suit by bringing forward its mass production timeline to 2027, whilst Guoxuan High-Tech’s 350 Wh/kg battery has already undergone on-road testing. This marks:
The end of range anxiety: With energy density surging by over 40 per cent, driving range has achieved a qualitative leap.
A new benchmark for safety: With the risk of thermal runaway approaching zero, battery safety has entered a whole new phase.
The ‘nemesis’ of low temperatures: Performance degradation at low temperatures has been reduced by 30 per cent, bringing good news for users in northern regions.

The ‘three-electric’ system faces significant changes:

High-voltage platforms become standard: Solid-state batteries generally exceed 800 V, requiring the voltage withstand capacity of electronic control systems to rise to the 1,200 V level, whilst the response speed of power devices must be improved by more than 50 per cent.
Coordinated upgrades to thermal management: Although batteries are inherently safer, system-level protection requirements are higher. Electrical control systems must engage in deep ‘dialogue’ with the BMS to monitor key parameters such as pressure expansion in real time.
Efficiency as the Decisive Battleground: When energy density is no longer the sole bottleneck, the high-efficiency range of 95%+ in electric drive systems will become the core battleground determining differences in range.
(Data and information sources: Sina Finance, East Money, 2025 In-Depth Report on the Solid-State Battery Industry)

With the phasing out of national subsidies, cost-reduction pressures are mounting: Electric drive systems account for 15–20 per cent of a vehicle’s total cost, making them a key target for OEMs seeking to ‘squeeze costs’.
The path to cost reduction for solid-state batteries is clear: the price of key materials, such as sulphide electrolytes, is expected to plummet from 10 million yuan per metric tonne in 2025 to 200,000 yuan per metric tonne by 2030, driving down the cost of all-solid-state batteries from three times that of current liquid-state batteries to within 1.5 times.
(Source of information and data: 2025 In-Depth Report on the Solid-State Battery Industry, NetEase)
Patents and standards in hand: China holds 38 per cent of global solid-state battery patents and 57 per cent of automotive-grade validation data, and is leading the formulation of core standards.
Production capacity is taking hold: Guoxuan High-Tech’s 0.2 GWh pilot line and CATL’s 5 GWh production line in Hefei are set to commence operations in H1 2025.
Breakthroughs in domestic equipment production: Lead Intelligent’s solid-state coating machine achieves a precision of ±1 μm, whilst Qingyan Electronics’ dry-process electrode production line features a web width of 800 mm, significantly reducing equipment investment costs per GWh.
(Source: Sina Finance)

Integrated ‘battery–electric drive–vehicle’ design emerges as a trend: Alliances between industry giants—such as CATL partnering with Mercedes-Benz and BMW, and BYD joining forces with Tesla—are emerging, requiring electric drive control manufacturers to adopt open architectures that support secondary development.
Diversification of technology routes and an explosion in customisation demand: The three major routes—sulphide (CATL), oxide (Qingtao) and polymer (Weilan)—are developing in parallel, necessitating that electric drive control systems adapt flexibly to different characteristics.
(Source: Oriental Finance, Snowball)

The ‘all-rounder’ of 800V+ platforms: utilising single-tube parallel technology, it significantly reduces the cost of electronic control systems compared to traditional IGBT modules, whilst addressing the challenges of current sharing and heat dissipation during high-rate discharge in solid-state batteries.
‘Double safeguard’ for safety: To address the interface expansion risks specific to solid-state batteries, the product features an ASIL-C functional safety design. This integrates pressure-sensing algorithms and works in close coordination with the BMS to provide thermal abuse protection, further enhancing safety.
Major investment in the Zhuji headquarters base: Phase One focuses on highly integrated ‘three-in-one’ electric drive assemblies, with an expected annual output value of 3 billion yuan; Phase Two will extend the industrial chain to create an integrated industrial base.
Leader in Lightweight Design: Lightweight integration technology combined with high torque density provides robust support for vehicle weight reduction and efficiency improvements.

Accelerate the establishment of strategic partnerships on the scale of those between CATL and Mercedes-Benz, and Guoxuan High-Tech and Volkswagen; engage deeply in battery pack design and develop proprietary algorithms.

Cost-led Global Expansion: Leverage cost advantages derived from technologies such as single-tube parallel connection to gain a foothold with international clients, achieving a positioning of ‘domestic pricing with international performance’.
Securing the High Ground in Silicon Carbide (SiC): Accelerate the development of 1,200V SiC modules to precisely align with the wave of transition to 800V platforms by European car manufacturers, thereby securing the technological high ground.

Redefining China’s Supply Chain in the Solid-State Revolution
CATL has opened a breach in the industry’s transformation with its 500 Wh/kg technology; the evolution of China’s core component manufacturers must shift from being technology adapters to becoming rule-makers. “True core component manufacturers do not chase trends; they create them.”