One-sentence hook (bold): The global race to commercialize solid-state batteries is accelerating, with Chinese manufacturers showcasing next-generation cells and securing major orders, even as some Western automakers warn mass production remains years away.
The global race to commercialize solid-state batteries is accelerating, with Chinese manufacturers showcasing next-generation cells and securing major orders, even as some Western automakers warn mass production remains years away.
The solid-state battery sector is reaching a new level of maturity, with Chinese battery maker WUXI LEAD expecting orders to double to 2 billion yuan in 2026. This surge in demand comes as domestic rival BAK Battery showcases a new lineup of semi-solid-state cells at the 18th China International Battery Fair, signaling a major push to move the next-generation technology from the lab to the production line.
"2026 is unlikely to mark the peak of the current upcycle, in view of capacity expansion plans of leading battery manufacturers and contributions from new technology routes such as solid-state batteries," WUXI LEAD's Board Secretary Yao Yao said, according to a Citigroup research note.
WUXI LEAD's solid-state battery orders reached 1 billion yuan in 2025, with the company projecting a 100 percent increase to 2 billion yuan next year, split evenly between overseas and domestic customers. Meanwhile, BAK Battery is displaying new semi-solid-state cells with capacities up to 68 Ah and a 314Ah LFP cell with a cycle life of over 10,000 cycles. This contrasts with warnings from figures like the CEO of Lotus, who recently stated that mass production of solid-state batteries could still be a decade away.
The push into solid-state technology is critical for China's battery giants, which accounted for over 82 percent of the 2,280.5 GWh global lithium-ion market in 2025. As the industry faces pressure to rein in price competition, higher-value products like solid-state and sodium-ion batteries represent the next frontier. For investors, the divergence between Chinese manufacturers' bullish targets and Western skepticism highlights both the immense opportunity and the significant technological hurdles that remain. WUXI LEAD's stock has responded positively, with Citigroup raising its target price to HKD 67.
The global lithium-ion battery market continues its rapid expansion, with shipments reaching 2,280.5 GWh in 2025, according to data from EVTank. Chinese companies produced a staggering 1,888.6 GWh, or 82.8% of the global total, cementing their dominance in the sector. However, with this scale has come intense price competition, prompting Chinese authorities to call for more orderly growth and a focus on product quality.
Against this backdrop, companies like BAK Battery are pivoting to higher-value technologies. At the CIBF 2026 in Shenzhen, the company is showcasing a comprehensive portfolio that moves beyond traditional lithium-ion. Its semi-solid-state cells, with capacities ranging from 30 Ah to 68 Ah, are aimed at high-performance applications like drones and premium electric two-wheelers, promising enhanced safety without sacrificing energy density.
BAK is also making a strategic bet on sodium-ion batteries, a technology seen as a key for large-scale energy storage due to the abundance and low cost of sodium. The company has launched a 150Ah prismatic sodium-ion cell with an industry-leading cycle life of more than 20,000 cycles. This technology is particularly well-suited for cold climates, addressing a key challenge for energy storage in northern regions.
In the more conventional cylindrical cell format, BAK continues to innovate. Its 21700-65E cell boasts a gravimetric energy density of 315Wh/kg, while the high-power 2170-50D2 model is designed for demanding applications like power tools, supporting 60A continuous discharge. These advancements underscore a broader industry trend: turning battery cells into high-efficiency, value-driven power sources for an ever-expanding range of applications, from electric vehicles to robotics.
The aggressive push by Chinese firms into next-generation battery technology stands in contrast to the more cautious outlook from some international players. The CEO of British sports car maker Lotus recently warned that solid-state batteries are still potentially a decade away from mass adoption, highlighting the challenges in scaling up production and ensuring durability. This timeline gap suggests different strategic approaches, with Chinese firms appearing more willing to bring semi-solid or hybrid technologies to market in the interim.
For investors, the key takeaway is the accelerating pace of innovation and the shifting value chain in the 1.89 trillion yuan battery industry. While WUXI LEAD's 2 billion yuan order book for 2026 provides a concrete data point on the growing commercial traction of solid-state technologies, the broader market is still in a transitional phase. The success of companies like BAK and WUXI LEAD will depend on their ability to translate technological prowess into profitable, large-scale manufacturing.
This article is for informational purposes only and does not constitute investment advice.
