On April 4, the megawatt (MW)-class hydrogen-fuelled aviation turboprop engine AEP100, independently developed by AECC Academy of Aero-Engine Research, was installed on a 7.5 mt-class unmanned transport aircraft and successfully completed its maiden flight at Zhuzhou Lusong Airport. This marked the world's first flight test of a megawatt-class hydrogen-fuelled aviation turboprop engine, signifying a breakthrough in the development of green aviation propulsion in China. The maiden flight proceeded smoothly throughout, with the engine operating normally and in good condition. The flight lasted a total of 16 minutes in the air, covering a distance of 36 kilometres at a speed of 220 kilometres per hour and an altitude of 300 metres above ground. The aircraft returned safely after successfully completing all scheduled flight test objectives, and the maiden flight mission was a complete success. The successful maiden flight was of great significance. It not only achieved a leap from technology to engineering in China's independent development of megawatt-class hydrogen-fuelled aviation engines, but also signified that China had established the full technology chain in this field, from core components to complete engine integration. It verified the engineering reliability of the hydrogen fuel propulsion system's compatibility with the flight platform, laying a critical foundation for the subsequent industrialisation of hydrogen-powered aviation applications. This became an important milestone in China's transition of green aviation propulsion from technological exploration to engineering practice.

Capacity side, according to incomplete statistics, China’s alkaline electrolyser market remained at 43.77 GW and the PEM electrolyser market remained at 2.7 GW, with no new capacity added. There was no offline delivery information this week. Project-related updates: PetroChina Shenzhen New Energy Research Institute Co., Ltd.: It issued a processing tender for its brine hydrogen production electrolyser. Funding for the tender project was self-raised by the enterprise, with a contribution ratio of 100%. It is understood that procurement of necessary raw materials and components included, but was not limited to, integrated electrolyser materials such as electrodes, end plates, bipolar plates, separators, and gaskets. Suppliers were also required to provide essential auxiliary accessories for the electrolyser, including cooling towers, chillers, and potassium hydroxide, in accordance with the purchaser’s requirements. Guangxi University of Science and Technology: It procured a hydrogen-fuel low-speed hybrid autonomous vehicle experimental system from Hefei Zhongke Shengu Technology Development Co., Ltd., with a transaction price of 844,800 yuan. Dalian Institute of Chemical Physics, Chinese Academy of Sciences: It issued a procurement notice for a 500 W hydrogen fuel cell testing platform. It is understood that the testing platform will be used for performance, efficiency, and durability testing of 500 W-class hydrogen fuel cell stacks and single cells. CGN New Energy Holdings Co., Ltd.: The Jilin Hydrogen Future Energy Factory Integrated Energy Project issued a procurement notice for an energy-saving assessment report. It is understood that the project had successively completed procurement for reports including water resources assessment, feasibility study, land-use pre-examination, hydrogen pipeline design, and power market analysis. Shaanxi Hydrogen Energy Industry Development Co., Ltd.: It released a public notice on the social stability risk assessment survey for Phase I of the 30 GW new energy green hydrogen production and hydrogen pipeline project (Inner Mongolia section). According to the notice, the project is located in Tuke Town, Uxin Banner, Ordos, Inner Mongolia Autonomous Region. It is understood that the hydrogen pipeline route is 19.6 km long, with a design pressure of 6.3 MPa, and uses L290QH steel pipe material (seamless steel pipe). Total project investment is about 449.38 million yuan. Allocated by route length (with the Uxin Banner section accounting for 53.4%), the estimated investment within the area is about 239.97 million yuan. The project construction period is 2026–2028. PetroChina Shenzhen New Energy Research Institute Co., Ltd. : Its hydrogen energy R&D department plans to custom-process one set of MW-class brine hydrogen production electrolyser equipment, with hydrogen production capacity of no less than 200 Nm³/h. Tender scope: procurement of one set of brine hydrogen production electrolyser equipment. Shanghai Electric Group Company Limited: It officially signed the Phase I project of the Inner Mongolia Baofeng coal-based new materials wind and solar power hydrogen production project. According to the agreement, Shanghai Electric will provide eight 1,250 Nm³/h alkaline electrolysers, the world’s largest single-set 5,000 Nm³/h separation and purification system, and an industry-first outdoor three-dimensional layout solution. Suqian Green Energy Hydrogen Innovation Technology Co., Ltd.: During the 5th China International Hydrogen Energy and Fuel Cell Industry Exhibition, Suqian Green Energy Hydrogen Innovation Technology Co., Ltd. and China Power Engineering Consulting Group Northwest Electric Power Design Institute Co., Ltd. held a strategic cooperation signing ceremony at the China National Convention Center in Beijing for a domestic MW-class AEM electrolyser testing project. Shenneng Northern Energy Holdings Co., Ltd.: It issued procurement for the preparation of a feasibility study report for the Etuoke Banner wind power hydrogen production integration green application project (Phase II), covering hydrogen production by water electrolysis and SAF synthesis. It is understood that the Etuoke Banner 505 MW wind and solar power hydrogen production integration green ammonia synthesis project (Phase I) was successfully selected in October 2025 as one of the first batch of hydrogen energy pilot projects in China’s energy sector, and is planned to be fully completed and put into operation in August 2026. Policy Review​ 1. Notice of the Ministry of Industry and Information Technology and three other departments on issuing the Implementation Plan for the High-Quality Development of Energy-Saving Equipment (2026–2028). The document stated that by 2028, mass-produced water electrolysis hydrogen production equipment should achieve DC power consumption of less than 4.2 kWh/Nm³ under rated operating conditions. 2. Notice of the General Office of the National Energy Administration on issuing the Guidelines for the Establishment of 2026 Energy Industry Standard Plans. The key areas for the 2026 energy industry standard plan include eight items. In the hydrogen energy field, key directions include fundamentals and general applications, hydrogen production and conversion, hydrogen storage and transportation, hydrogen refuelling, hydrogen power and power generation, and hydrogen equipment. 3. Ministry of Commerce Announcement No. 18 of 2026: announcement of the launch of a trade barrier investigation into US practices and measures that hinder trade in green products. Preliminary evidence and information obtained by the Ministry of Commerce showed that the US had implemented multiple practices and measures in trade-related areas that hinder trade in green products, including but not limited to restricting exports of green products to the US, slowing new energy deployment, and restricting technology cooperation related to green products. Enterprise Updates​​ Xieqing (Shanghai) New Energy Technology Co., Ltd.: Its hydrogen-powered drone H100 was officially put into use for material transport by China Post in Suibin County/Bayan County, Heilongjiang, entering the stage of regularised operations. Henan Junheng Industrial Group Biotechnology Co., Ltd. : Five reactors for its 1 million mt/year waste oil and fat processing sustainable aviation fuel project were successfully hoisted into place. Hubei Yingteli Electric Co., Ltd.: The two sets of thousand-cubic-metre-class IGBT hydrogen production power supplies it provided were successfully applied in South Korea’s first off-grid green hydrogen production project. Ordos Hanxia New Energy Co., Ltd. : At the hydrogen production plant of the Narisong PV hydrogen production industry demonstration project in Jungar Banner, Ordos, Inner Mongolia Autonomous Region, the first truckload of 99.999% national-standard high-purity green hydrogen in 2026 was successfully dispatched after filling operations were completed. Hydshine Energy (Shenzhen) Co., Ltd.: It announced the completion of its Pre-B round of financing. This round was exclusively strategically invested by the Shenzhen Energy Storage Fund. It is understood that the funds will be mainly used for global market expansion, next-generation product R&D, and industrialisation capabilities. Shanghai Hydrogen Energy Group Co., Ltd.: It was successfully recognised as a “Shanghai Specialised, Sophisticated, Distinctive and Innovative SME” in the first batch list of Shanghai specialised and sophisticated small and medium-sized enterprises. Tianneng Battery Group Co., Ltd. : During the Tianneng 2026 Spring New Product Launch held in Tianjin, Tianneng signed strategic cooperation agreements with multiple partners on hydrogen fuel cells and solid-state batteries. In hydrogen energy, Tianneng joined hands with Guangdong Vision Holding Group and Tianjin Weida Space Technology to deepen the deployment of hydrogen-powered shared bicycle scenarios and promote the rollout of this model in more cities. ​​Patent Applications​​ 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences​​ (China) disclosed patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory-tested lifespan of 80,000 hours. ​​2. Johnson Matthey​​ (UK) filed patent WO2025109876, disclosing an Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprint/Technical Specifications​​ 1. Professor Yu Ying’s team at Central China Normal University developed a three-dimensional graded nanostructured catalytic electrode, a core part for seawater hydrogen production. 2. Dalian University of Technology designed an electron-pump catalyst with an asymmetric photoresponse structure to maintain asymmetry in electron distribution. 3.​​Research teams from the School of Electrical Engineering at Xi’an Jiaotong University and the State Key Laboratory of Electrical Materials and Electrical Insulation successfully developed a Ru/Ti3C2Ox@NF bifunctional electrocatalyst for seawater electrolysis. 4. Johnson Matthey and Syensqo achieved efficient recycling and reuse of platinum group metals and ionomers in PEM fuel cells and electrolysers, significantly reducing the carbon footprint. 5. Teams from Xi’an Jiaotong University and Peking University jointly developed a new-type osmium-based catalyst, significantly improving the efficiency and economics of AEM water electrolysis hydrogen production and supporting the scale-up of low-cost green hydrogen.

The Dutch Ministry of Economic Affairs has granted "strategic" status to two major energy projects under the European Net-Zero Industry Act (NZIA). The status was awarded to Power2X’s eFuels Rotterdam project for sustainable aviation fuel (e-SAF) production and to Sif Holding NV for expanding offshore wind foundation capacity at Maasvlakte. Sif’s expansion is expected to support 3.6–4.2 GW of offshore wind power annually. This designation aims to accelerate permitting and strengthen long-term investment stability for critical green infrastructure in the Port of Rotterdam.

Capacity side, according to incomplete statistics, China’s alkaline electrolyzer market remained at 43.77 GW and the PEM electrolyzer market remained at 2.7 GW, with no new capacity added. There was no offline delivery information this week. Project-related updates: Binyang County Haoyuan Industrial Investment Co., Ltd.: Competitive consultation was launched for the Binyang County Green Electricity Hydrogen Production Pilot Construction Project (procurement of hydrogen production equipment and facilities). The budget amount was 2.85 million yuan, with a maximum price limit of 2.85 million yuan. The project entity was Binyang County Haoyuan Industrial Investment Co., Ltd. It is understood that the company is a wholly owned subsidiary of Binyang County Kunpeng Water Affairs Co., Ltd. Kunpeng Water Affairs has registered capital of 448.6 million yuan, and its ultimate controller is the Binyang County Finance Center. Datang Inner Mongolia Duolun Coal Chemical Co., Ltd.: Inquiry-based procurement was conducted for the feasibility study and green methanol certification consulting technical services for the CNCEC Duolun coal chemical coal-based process biomass co-firing coupled with green electricity green methanol production project. It is understood that the Datang Duolun 150,000-kW integrated wind and solar power hydrogen production demonstration project was China’s first medium-to-large-scale technological demonstration project for off-grid wind and solar power hydrogen production deeply coupled with coal chemicals. It was invested in and constructed by Datang Duolun Ruiyuan New Energy Co., Ltd., with a total investment of about 1.3 billion yuan. Construction officially began in November 2023, construction officially began in November 2023, hydrogen was successfully produced on December 29, 2024, and the project was officially connected to the grid and put into operation on January 17, 2025. Shaanxi Construction Engineering Installation Group Co., Ltd.: The Guyang-Baiyun Obo gas transmission pipeline project, undertaken by Shaanxi Installation Group, achieved important progress, with its Guyang initial station and valve chamber successfully passing completion acceptance. It is reported that the gas transmission pipeline project has a 20% hydrogen blending transmission capacity and is a key planned construction project under the “County-to-County Coverage in Western Inner Mongolia” initiative in the Inner Mongolia Autonomous Region’s 14th Five-Year Plan for Oil and Gas Development. The pipeline has a total length of 125 km, starting from the Guyang initial station and running overall from south to north, successively passing through Guyang County, Darhan Muminggan Banner, and the Baiyun Obo mining district in Baotou City, and ultimately reaching Barun Industrial Park. PetroChina Shenzhen New Energy Research Institute Co., Ltd.: It released a processing tender for its brine hydrogen production electrolyzer. Funding for the tender project was self-raised by the enterprise, with a contribution ratio of 100%. It is understood that procurement of necessary raw materials and components includes, but is not limited to, integrated electrolyzer materials such as electrodes, end plates, bipolar plates, separators, and gaskets. Suppliers were also required to provide essential auxiliary electrolyzer accessories such as cooling towers, chillers, and potassium hydroxide in accordance with the purchaser’s requirements. Tianjin Saihong Environmental Engineering Co., Ltd.: A groundbreaking and pile foundation commencement ceremony was held in the Dagang Petrochemical Industrial Park of Tianjin Binhai New Area. It is understood that the project uses the polyploid giant reed “Lüzhou No. 1,” carefully cultivated by Ruihengmao Group, as its core raw material, successfully overcoming the bottlenecks of existing gasification technologies and the economic challenges of biomass raw materials. Tangshan Haitai New Energy Technology Co., Ltd.: recently entered into a strategic cooperation agreement with Beijing Shougang Gas Co., Ltd. During the meeting, Haitai New Energy gave a detailed presentation on the planning layout and current progress of its long-distance hydrogen pipeline project. The two sides then conducted in-depth discussions and exchanges on the development direction of the hydrogen energy industry and successfully signed a strategic cooperation agreement. In view of Shougang Gas’s continuously rising future demand for hydrogen, Haitai New Energy will leverage its comprehensive advantages in hydrogen transportation to provide Shougang Gas with stable and reliable green hydrogen supply services and comprehensive integrated solutions. Shanghai Juna New Material Technology Co., Ltd.: its water electrolysis hydrogen production electrode company, Juna Technology, completed a new round of financing, exclusively invested by CATL, which has become the company’s largest external institutional shareholder at present. Previously, Juna Technology had completed its first round of financing led by Lenovo Star and its second round led by Changjiang Innovation. This round of financing also marked the company’s first introduction of industrial capital. To date, the company has accumulated 8 external institutional shareholders. Shanghai Juna New Material Technology Co., Ltd.: formally signed a strategic cooperation agreement with Zhejiang Sunshine Green Hydrogen Technology Co., Ltd. This cooperation mainly focuses on the industrialisation and deployment of megawatt-class AEM electrolyzers. Leveraging its advanced JE series high performance AEM hydrogen production electrodes, Juna Technology will provide core component support for Sunshine Green Hydrogen in the R&D, testing, and scaled mass production of megawatt-class electrolyzers. Xinjiang Qingda Energy Technology Co., Ltd. : the environmental impact report for its integrated production line project with annual output of 120,000 mt of green hydrogen and 700,000 mt of green ammonia is planned for submission for approval and public disclosure. According to the disclosure, the project is a new-build project located in the western zone of Wusu Industrial Park and invested in and constructed by Xinjiang Qingda Energy Technology Co., Ltd., with a total investment of 4.1914 billion yuan. The project includes extensive construction content, specifically: six water electrolysis hydrogen production unit lines, each with annual output of 20,000 mt, to achieve annual output of 120,000 mt of green hydrogen; meanwhile, one ammonia synthesis unit line with annual output of 700,000 mt to produce 700,000 mt of green ammonia; in addition, one nitrogen production unit line with annual output of 560,000 KNm³ is also planned. In terms of auxiliary facilities, the project will build 6 electrolyzer workshops, 1 office building, 1 circulating water station, 1 central control room, 1 liquid ammonia tank farm, 1 hydrogen tank farm, 1 demineralised water station, and other supporting facilities, with total gross floor area of 127,083.72 m² and total site area of 330,883 m². The construction period is expected to be 12 months. In the water electrolysis hydrogen production segment, the project adopts the alkaline electrolyzer (ALK) hydrogen production process, equipped with 86 2,000-Nm³ electrolyzers, as well as 2 purification units and 2 gas-liquid treatment units, and is expected to produce 120,000 mt of hydrogen annually, mainly as raw material for ammonia synthesis. For the ammonia synthesis unit, the project will build one new unit adopting Casale axial-radial technology, with major equipment including ammonia compressors and synthesis towers, and is expected to produce 700,000 mt of liquid ammonia annually. CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd.: CRRC Zhuzhou Institute successfully won the bid for 8 water electrolysis hydrogen production systems for Phase I of Kaishan Group’s Kenya green fertilizer project. It is understood that this is the first export of CRRC electrolyzer products to Africa and also the world’s first project to produce green hydrogen/ammonia using geothermal new energy. The Kaishan fertilizer project uses geothermal steam from a Kenyan energy company to generate clean electricity, and then uses this clean electricity to produce hydrogen and green ammonia, ultimately producing more than 480,000 mt of green fertilizer. The hydrogen production section of the project uses a total of 90 sets of 1,000 Nm³/h. Xinqing Energy Technology (Fukang) Co., Ltd.: the EPC general contracting tender for the Xinqing Energy photovoltaic hydrogen production coupled resource clean utilisation low-carbon integrated project (chemical section) was recently released. It is reported that the project is located about 28 km east of Fukang City, Changji Prefecture, Xinjiang Uygur Autonomous Region, about 72 km west of Jimusar County, about 7 km north of Ganhezi Town, and adjacent to the east side of Xinjiang Jinxiang Sairui Coal Chemical Technology Co., Ltd. The project plans to build a new 383.3 MW PV power generation system to achieve hydrogen production capacity of 20,000 mt per year, together with a supporting ammonia synthesis system with annual output of 130,000 mt. In addition, one 220 kV step-down substation will also be built. Inner Mongolia Baofeng Coal-Based New Materials Co., Ltd.: Power Station Group has formally signed a cooperation agreement with Inner Mongolia Feng Coal-Based New Materials Co., Ltd. Power Station Group will supply key equipment for the Phase I water electrolysis hydrogen production project of the other party’s wind and solar power hydrogen production project, specifically including 8 alkaline electrolyzers of 1,250 Nm³/h and the world’s largest single-set 5,000 Nm³/h separation and purification system. In addition, Power Station Group will also provide the industry’s first outdoor three-dimensional layout design supporting services. Policy Review 1. Notice of the Ministry of Industry and Information Technology and Three Other Departments on Issuing the Implementation Plan for the High-Quality Development of Energy-Saving Equipment (2026-2028). The document states that by 2028, mass-produced water electrolysis hydrogen production equipment will achieve DC power consumption below 4.2 kWh/Nm³ under rated operating conditions. 2. Notice of the General Office of the National Energy Administration on Issuing the Guidelines for Project Approval of the 2026 Energy Industry Standards Plan. The key areas for project approval under the 2026 energy industry standards plan include 8 items. In the hydrogen energy field, the key directions include fundamentals and general applications, hydrogen production and conversion, hydrogen storage and transportation, hydrogen refueling, hydrogen power and generation, and hydrogen equipment. 3. Notice of the People’s Government of Heilongjiang Province on Issuing the Outline of the 15th Five-Year Plan for National Economic and Social Development of Heilongjiang Province. The document states that Heilongjiang will step up development of the bioenergy industry, foster green liquid fuel industries such as green hydrogen-to-ammonia, green methanol, and green aviation fuel, strive to achieve annual production capacity of 1 million mt of green hydrogen and 3 million mt of green liquid fuels, and accelerate the scaled and commercial development of bio-natural gas. Corporate Developments CIMC Enric Holdings Limited: Yang Baoying, honorary president of its hydrogen business center, and his delegation recently visited Pengfei Group. During the exchange, the two sides held discussions on promoting the implementation of the “hydrogen cylinder replacement” operating model for hydrogen heavy-duty trucks in Lvliang and ultimately reached consensus. This move has injected strong momentum into the commercialisation and scaled promotion of hydrogen heavy-duty trucks, pressing the “fast-forward button.” Yuchai Xinlan (Jiangsu) Hydrogen Energy Co., Ltd. : formally entered into a strategic cooperation agreement with Henan Hitachi Xin Co., Ltd. The two sides will carry out in-depth cooperation around key links in the hydrogen energy industry chain and jointly advance hydrogen technology innovation, product R&D, and market applications. Shaanxi Construction Engineering Installation Group Co., Ltd.: the Guyang first station and valve chamber of the Guyang-Baiyun Obo gas pipeline project, which it constructed, successfully passed completion acceptance. This milestone means that the innovative infrastructure project, equipped with 20% hydrogen blending transmission capability, is on the verge of official operation. It is understood that the Guyang-Baiyun Obo gas pipeline project not only has 20% hydrogen blending transmission capacity, but is also a key planned construction project under the “county-to-county connectivity in western Inner Mongolia” initiative in the Inner Mongolia Autonomous Region’s 14th Five-Year Plan for oil and gas development. The pipeline has a total length of 125 km, starting from the Guyang first station and generally running from south to north, passing through Guyang County, Darhan Muminggan Banner, and Baiyun Obo mining district in Baotou City before finally reaching Barun Industrial Park. Jiangsu Guofu Hydrogen Energy Technology Equipment Co., Ltd. : a delegation from Thailand’s water resources, electricity, and related institutions came to China for exchanges on the new energy industry and made a special trip to Zhangjiagang, Jiangsu, to visit the rooftop PV hydrogen production project jointly developed by ZNShine Solar and Guofu Hydrogen Energy. It is understood that the project relies on a distributed PV system installed on factory rooftops to provide clean and stable electricity for the enterprise’s production and energy applications through PV power generation, balancing efficient energy utilisation and green development. At the same time, it integrates hydrogen application scenarios and is equipped with an ESS to ensure stable energy supply for hydrogen production. It is a leading distributed PV hydrogen production demonstration project in China, showcasing China’s advanced achievements in the integrated development of PV and hydrogen energy. CSIC 712 Research Institute: the 100-kg-class hydrogen-powered hexacopter UAV “Hydrogen Peak No. 1,” which it led in developing, successfully completed its maiden flight. It is understood that Hanhydrogen Power, as the main supplier of the hydrogen supply system for hydrogen fuel cell UAVs, participated in the formulation of T/CEEIA265-2017 Technical Specification for Fuel Cell Fuel Systems of Unmanned Aerial Vehicles by the China Electrotechnical Society. Shanghai Yigong Hydrogen Energy Technology Co., Ltd.: Yigong Hydrogen Energy has seen concentrated batch shipments of its hydrogen compressor products, which have been delivered to project sites across the country for commercial operation. Guofu (Jinan) Hydrogen Energy Technology Development Co., Ltd.: registered capital is 2 million yuan, and the legal representative is Ding Leizhe. Equity information shows that Jiangsu Guofu Hydrogen Energy Technology Equipment Co., Ltd. holds 80% of the company, while Zhejiang Lingniu Yishi New Energy Technology Co., Ltd. holds 20%. Patent Applications 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) disclosed patent CN2025110028, developing a ceramic-based anion exchange membrane with laboratory-tested service life reaching 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing an Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprint/Technical Specifications 1. Professor Yu Ying’s team at Central China Normal University developed a three-dimensional graded nanostructured catalytic electrode, a core component for seawater hydrogen production. 2. Dalian University of Technology designed an electron-pump catalyst with an asymmetric photoresponse structure to maintain asymmetry in electron distribution. 3. Research teams from the School of Electrical Engineering at Xi’an Jiaotong University and the State Key Laboratory of Electrical Materials and Electrical Insulation successfully developed a Ru/Ti3C2Ox@NF bifunctional electrocatalyst for seawater electrolysis. 4. Johnson Matthey and Syensqo achieved efficient recycling and reuse of platinum group metals and ionomers in PEM fuel cells and electrolyzers, significantly reducing carbon footprint. 5. Teams from Xi’an Jiaotong University and Peking University jointly developed a new-type osmium-based catalyst, significantly improving the efficiency and economics of AEM water electrolysis hydrogen production and supporting the scaled deployment of low-cost green hydrogen.

On the morning of March 10, the unveiling ceremony and construction launch meeting for the Shanghai Key Laboratory of Efficient Green Fuel Synthesis Systems Engineering (Preparatory) were successfully held at Shanghai Boiler Works Co., Ltd. Xuan Fuzhen, President of East China University of Science and Technology, and Wu Lei, Party Secretary and Chairman of Shanghai Electric Group, jointly unveiled the laboratory, marking the official entry of the key laboratory’s development into a new stage of substantive progress. Zheng Guanghong, Second-Level Inspector of the Shanghai Municipal Science and Technology Commission, witnessed the ceremony on site. Led by Shanghai Boiler Works Co., Ltd. and jointly established with East China University of Science and Technology, the laboratory focuses on tackling critical “bottleneck” technological challenges in the application field of efficient synthesis of green fuels such as green methanol, green ammonia, and sustainable aviation fuel (SAF). It has precisely laid out three core research directions: efficient synthesis of diversified green fuels, high-efficiency clean power equipment, and AI + digital twin flexible regulation and control. It is committed to building a full-chain innovation system spanning basic R&D, pilot-scale verification, and industrialisation, thereby supporting breakthroughs in green fuel technologies and their industrial application. Wu Lei, Party Secretary and Chairman of Shanghai Electric Group, stated at the event that the high-standard development of the key laboratory for green fuels is an important practice for Shanghai Electric in implementing the national development strategy for new quality productive forces in the energy sector and promoting the deep integration of green fuel technological innovation with industry. Shanghai Electric will use the laboratory’s development as an important lever, providing comprehensive support in policy, resources, funding, and other aspects, fully integrating high-quality internal and external resources, and making every effort to advance technological research, professional talent cultivation, and the commercialisation of scientific research achievements, thereby contributing wisdom and strength to the high-quality development of China’s green fuel industry. Xuan Fuzhen, President of East China University of Science and Technology, pointed out that the university will give full play to its disciplinary strengths, carry out close and pragmatic cooperation with Shanghai Electric, vigorously promote the deep integration of industry, academia, and research, focus on core challenges in green fuel synthesis technologies and equipment, strive to achieve major technological breakthroughs, and work together to build a benchmark for collaborative innovation among industry, academia, and research. Jin Xiaolong, Member of the Party Committee and Vice President of Shanghai Electric Group, Vice President Qiu Jiayou, and relevant leaders from the Shanghai Municipal Science and Technology Commission, East China University of Science and Technology, and Shanghai Electric Power Station Group attended the event.

On the evening of March 18, 2026, at Chery Automobile Battery Night 2026 in Wuhu, Anhui, Chery unveiled its Rhino all-solid-state battery technology. It had completed the development and pilot production of a 60Ah, 400Wh/kg all-solid-state battery cell and was advancing toward an ultra-high energy density of 600Wh/kg.

Solid-state batteries were a hot topic at the 2026 Two Sessions, where delegates noted that the industry is at a critical inflection point, moving from “samples” to “products.”

◼ At the beginning of 2026, Musk’s SpaceX plan for 100 GW of annual space PV capacity ignited the A-share market, with multiple concept stocks rising by more than 30 in a single month. At the same time, however, earnings previews from leading PV companies generally showed losses for 2025, and industry fundamentals remained in a deep winter. Behind the stark divergence between the speculative frenzy around the Musk-SpaceX concept and the earnings trough, is the market overly expecting a “second growth curve,” or is this a genuine signal of industrial transformation? ◼ As the global PV industry moves from rapid expansion into a new stage of rational development, its value has gone beyond that of clean energy alone: Against the backdrop of explosive growth in AI computing power driving massive electricity demand, compounded by energy security anxiety triggered by geopolitical conflict in the Middle East, developing PV may become a core strategic choice for countries to achieve their “dual-carbon” goals, build autonomous and controllable energy systems, and reduce electricity costs for end-users. ◼ Since the escalation of the U.S.-Iran conflict at the end of February, the world’s four major benchmark crude oil prices have entered a rapid upward trajectory. Before the outbreak of the conflict, oil prices had remained broadly stable; however, starting on March 2, as the fighting expanded and spread to the Persian Gulf, oil prices immediately entered a sharp uptrend. Note: Shanghai crude oil prices are converted based on the settlement-date exchange rate of 1:0.15. Source: Public information, SMM. ◼ Although the impact borne by different regions varies due to differences in energy mix, geopolitical location, and policy response, the surge in imported crude oil costs driving a broad rise in energy prices has become a common challenge facing all countries. Europe is a case in point. Although Europe’s direct dependence on Middle Eastern crude oil was not high, at only about 5 according to data from energy market intelligence firm Kpler, it remained highly dependent on the region for refined products such as diesel and aviation kerosene, as well as liquefied natural gas. Disruptions in the Strait of Hormuz caused by the conflict directly pushed up Europe’s terminal energy prices—fuel prices at gas stations across the region surged, and natural gas prices broke above EUR 60 per megawatt hour on the 9th, reaching a new high since 2022. The continued rise in energy prices is bound to transmit into broader areas of the economy, increasing overall inflationary pressure and once again underscoring the importance of building secure and controllable energy systems. Accelerating the Clean Transition of the Global Energy Mix, the PV Industry Advances Toward High-Quality Development ◼ The International Energy Agency (IEA) forecasts that, despite economic pressure, global electricity demand momentum remains strong in 2025, with growth rates in 2025 and 2026 expected to be 3.3% and 3.7%, respectively. Data from 2020 to 2025 showed that the global power market followed a trajectory of continued overall growth alongside structural transition toward cleaner energy , with the share of renewable energy sources such as solar rising significantly, although fossil fuels still accounted for the dominant share. ◼ According to the IEA’s Net Zero Emissions Scenario, solar power’s share in the energy mix is expected to rise from less than 2% at present to 12% in 2035 and 28% in 2050. This means PV installations are still far from reaching their ceiling, with substantial room for future growth. ◼ The past five years marked a critical period in which the global PV market shifted from rapid expansion toward rational development. The IEA forecasts that total global new PV installations over the next five years will reach about 3.68 TW, accounting for nearly 80% of new renewable energy additions over the same period, and are expected to become the world’s largest renewable energy source by the end of 2030. This is mainly due to its widening economic advantages—by 2024, the cost of solar PV power generation had already fallen 41% below the cheapest fossil fuel alternative, and these cost advantages are driving rapid growth in both PV installations and power generation share. Source: IEA, public information, SMM. ◼ As a key carrier of PV installations, especially the backbone of utility-scale power plants, solar panel mounting bracket installations are expected to maintain annual average growth of 5%-6% alongside installation growth. Specifically, to achieve annual average new PV installations of 500-600 GW, corresponding module demand is estimated at about 550-700 GW based on the capacity ratio. Assuming a conventional 1:1 module-to-bracket configuration, the annual average installation scale of brackets required for utility-scale PV plants alone would reach at least 250-300 GW. Source: public information, SMM. Escalating Challenges Reshape the Development Logic of the Global PV Market ◼ The PV industry is undergoing resonating internal and external pressures. Internally, the global economic slowdown has become intertwined with social issues, while the industry itself has entered a rational development stage after rapid expansion, making slower installation growth a certain trend. Externally, global trade frictions continue to intensify, with the US, Europe, and other regions erecting nearly insurmountable cost gaps through barriers such as anti-dumping and countervailing duties as well as local content requirements. Challenge 1: Global Trade Frictions and Escalating Trade Barriers ◼ In recent years, countries have introduced a series of policies to build PV trade barriers and reshape the global competitive landscape of the industry. The US imposed “double anti-” duties of as much as 3,403.96% on PV products from four Southeast Asian countries, South Africa raised module tariffs to 10%, and Brazil increased out-of-quota tariffs sharply from 9.6% to 25% through a quota system. Market access requirements for PV in India and Türkiye have also become increasingly stringent. Meanwhile, new supply chain control rules represented by the EU’s Net-Zero Industry Act (NZIA) have extended trade barriers deeper into the industry chain. By setting red lines on “third-country dependence,” they have established quantitative standards for supply chain restructuring. This series of changes has reshaped the competitive dimensions of the international PV industry and significantly raised the threshold for PV product imports and exports. Source: public information, SMM. Challenge 2: New Dynamics in the PV Market, with Incentive and Restrictive Policies Coexisting Source: public information, SMM. Outside China Enterprises Pursue Multi-Dimensional Breakthroughs Through Internal and External Efforts ◼ The practices of solar panel mounting bracket enterprises in the US, India, and other countries show that the key to coping with policy shifts overseas lies in combining “service-oriented” and “high-value” strategies. First, vertically extending from single-equipment sales to a service ecosystem covering the entire life cycle. Second, deepening horizontally by continuously optimizing business structure and extracting value from higher value-added segments. Solution 1: Launch Dedicated Plans Closely Aligned with Government Policies and Local Demand ◼ The global PV industry has now entered a new stage deeply reshaped by both market forces and policy. The growth logic of enterprises is shifting from the past single dimension of relying on technology iteration and cost declines to multi-dimensional competition closely integrating complex policy environments with localized demand. Against this backdrop, the key to corporate success lies in accurately interpreting policy intentions and launching development plans aligned with both market and policy. Tata Power Renewable Energy Limited (TPREL) precisely aligned with India’s “PM Surya Ghar: Muft Bijli Yojana” and launched the dedicated “solar for every home” plan while continuing to provide customized PV solutions. In Q1 FY2026, it added 220 MW of new rooftop PV installations, surging 416% YoY. TPREL also actively responded to local manufacturing policies by establishing 4.3 GW of solar cell and module capacity, ensuring supply while avoiding import tariffs. Through the synergy of “policy response + local capacity + customized services,” TPREL has effectively translated policy dividends into market competitiveness and steadily consolidated its leading position in India’s PV market. Solution 2: Use Acquisitions as a Link to Integrate Resources and Extend from Single Products to the Entire Industry Chain ◼ Competition in the global PV industry has fully escalated into a contest of entire industry chain system integration capabilities, and enterprises’ growth engines are shifting from past reliance on advantages in a single segment to a new model of providing integrated solutions through resource integration. In 2025, Nextracker used acquisitions as the core to integrate resources across the full chain, successively acquiring foundation engineering firms such as Solar Pile International and Ojjo, module supporting firms such as Origami Solar, and electrical system firms such as Bentek, thereby building a full-chain product matrix spanning structural, electrical, and digital solutions. Its performance continued to surge, with revenue rising from $1.9 billion in FY2023 to $3.4 billion in the trailing twelve months ended September 2025. It ultimately announced its transformation into a comprehensive energy solutions provider by renaming itself Nextpower, targeting revenue of more than $5.6 billion in FY2030. This strategy enabled its successful transformation from a single-product supplier into an entire industry chain service provider, solidifying its leading position in the global market. Solution 3: Optimize Business Structure ◼ Trade protectionism in the current PV market continues to intensify, with various trade barriers being layered on one after another. In response to this challenge, PV enterprises can achieve the dual objectives of “compliant operations” and “market retention” through business structure optimization. To avoid the equity constraints on FEOC under the US OBBB Act, Canadian Solar Inc. initiated a US business restructuring with its controlling shareholder CSIQ: it established two new joint ventures to separately manage PV and energy storage businesses, with its own stake set at 24.9% to precisely meet compliance requirements. At the same time, it transferred out 75.1% equity in three overseas plants supplying the US market, receiving a one-off consideration of 352 million yuan. This move enabled Canadian Solar Inc. to retain earnings from the US market through dividends and rental income. In the first three quarters of 2025, it achieved net profit of 990 million yuan, while large-scale energy storage shipments rose 32% YoY. After the adjustment, it focused on strengthening its advantages in non-US markets and successfully stabilized its global business layout with a compliant structure, providing a typical model for the industry in addressing trade barriers. ◼ For Chinese enterprises, in the face of trade frictions and overseas capacity gaps, they need to break through via three paths—“building plants near core markets, reducing costs and improving efficiency through technological innovation, and coordinating both within and outside the industry chain”— by pursuing localized deployment in Southeast Asia, Mexico, and other regions to avoid frequent trade frictions; promoting standardized production and high-end product R&D to enhance competitiveness; and building a “China + overseas” dual-circulation supply chain to stabilize costs. However, overseas expansion still faces challenges such as land and environmental protection costs, talent shortages, and supply chain fluctuations, requiring enterprises to conduct sound risk assessments, leverage policy support, and improve overseas investment service systems. Only by deeply integrating scientific capacity deployment, technological innovation, and industry chain coordination can the mounting bracket industry upgrade from “Made in China” to “Globally Intelligent Manufacturing” and achieve long-term development under the “dual carbon” goals. New Requirements Under the 15th Five-Year Plan, New Topics for PV Enterprises ◼ In a global market full of uncertainties, the consistency and strength of domestic policy have provided fertile ground for the growth of China’s solar panel mounting bracket enterprises. The newly released 15th Five-Year Plan further clarified China’s path for energy and industrial development. On the one hand, the construction of a new-type power system centered on consumption capacity has been listed as a priority task, and green manufacturing and full life cycle management have been formally incorporated into the assessment system. On the other hand, technological self-reliance and self-strengthening together with new quality productive forces have replaced scale competition as the main line of the new development stage. This series of changes signals that the country is driving a profound shift from “competing on capacity” to “competing on system value,” with the core goal of achieving autonomous and controllable energy structure. It is estimated that after the Two Sessions, various departments will successively roll out detailed plans to promote the full implementation of the blueprint. ◼ Key implementation measures include: 1) establishing a “dual controls” system for total carbon emissions and carbon intensity, while improving incentive and restraint mechanisms; 2) vigorously developing non-fossil energy and promoting the efficient use of fossil energy, while strengthening the construction of a new-type power system to ensure stable supply of green electricity; 3) applying both “addition and subtraction” by fostering green and low-carbon industries and promoting energy conservation and carbon reduction in key industry; 4) in addition, accelerating the green transformation of production and lifestyles to consolidate the foundation for green development. ◼ From the perspective of regional development layout, during the 15th Five-Year Plan period, China’s PV industry will show characteristics of regional coordination: north-west China will become the strategic focus by virtue of its natural endowments, exporting electricity through cross-provincial green electricity trading and other means to achieve two-way matching between energy resources and power load; eastern regions, by contrast, will focus on local consumption by high-energy-consuming industries and zero-carbon industrial parks. Source: public information, SMM. ◼ SMM forecasts that China’s new PV installations are expected to reach 208 GW in 2025 and continue growing at an annual average rate of 9% over the next five years, exceeding 292 GW by the end of the 15th Five-Year Plan period. Utility-scale PV will remain dominant, with its installation share staying above 50%. Based on the same logic, we estimate that China’s PV installation market will maintain annual incremental growth of at least 100-120 GW. Source: public information, SMM. ◼ Focusing on China’s steel consumption market for solar panel mounting brackets, SMM estimates that annual steel consumption in China’s PV mounting bracket sector will average about 4-4.5 million mt from 2026 to 2030, accounting for about 30% of total steel consumption in the PV industry over the same period (based on 2026 data). Note: only installation demand for utility-scale PV mounting brackets is included, excluding distributed steel structures, replacement from existing asset depreciation, and exports. Source: public information, SMM. SMM Ferrous Consulting Based on its understanding of the global steel industry chain and regional markets, as well as its strong industry database and network resources, SMM is committed to providing clients with consulting services across the upstream, midstream, and downstream industry chain. Services include market supply and demand research and forecasts, market entry strategies, competitor cost research, and more, covering end-use industry from iron ore, coal, coke, and steel. SMM Ferrous has successfully served more than 300 Fortune Global 500 companies, China Top 500 companies, central state-owned enterprises, state-owned enterprises, publicly listed firms, and start-ups. Data Source Statement: Except for public information, all other data are processed and derived by SMM based on public information, market communication, and SMM’s internal database models, and are for reference only and do not constitute decision-making advice. *This report is an original work and/or compilation work exclusively created by SMM Information & Technology Co., Ltd. (hereinafter referred to as “SMM”), over which SMM lawfully enjoys copyright, protected by the Copyright Law of the People’s Republic of China and other applicable laws, regulations, and international treaties. Without written permission, it may not be reproduced, modified, sold, transferred, displayed, translated, compiled, disseminated, or otherwise disclosed to any third party or licensed to any third party for use in any form. 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NBS data showed that in February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. In February, the composite PMI output index was 49.5%, down 0.3 percentage points from the previous month, indicating that overall production and business activities of enterprises in China slowed down from the previous month. Huo Lihui, Chief Statistician of the NBS Service Sector Survey Center, interpreted China’s PMI for February 2026. Performance of China’s PMI in February 2026 I. Performance of China’s Manufacturing PMI In February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. By enterprise size, the PMI for large enterprises was 51.5%, up 1.2 percentage points from the previous month and above the threshold; the PMIs for medium- and small-sized enterprises were 47.5% and 44.8%, down 1.2 and 2.6 percentage points from the previous month, respectively, and below the threshold. By sub-index, among the five sub-indices that make up the manufacturing PMI, the production index, new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 49.6%, down 1.0 percentage points from the previous month, indicating that manufacturing production activities slowed down. The new orders index was 48.6%, down 0.6 percentage points from the previous month, indicating a decline in the prosperity of market demand in the manufacturing sector. The raw material inventory index was 47.5%, up 0.1 percentage points from the previous month, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed slightly. The employment index was 48.0%, down 0.1 percentage points from the previous month, indicating a slight pullback in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 49.1%, down 1.0 percentage points from the previous month, indicating that delivery times of raw material suppliers in the manufacturing sector slowed compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. By industry, the construction business activity index was 48.2%, down 0.6 percentage points from the previous month; the services business activity index was 49.7%, up 0.2 percentage points from the previous month. From the perspective of service industries, the business activity indices for industries such as accommodation, catering, and culture/sports/entertainment were all in a high prosperity range above 60.0%; the business activity indices for industries such as capital market services and real estate were all below the threshold. The new orders index was 45.2%, down 0.9 percentage points MoM, indicating a pull back in non-manufacturing market demand. By industry, the new orders index for the construction industry was 42.2%, up 2.1 percentage points MoM; the new orders index for the services industry was 45.7%, down 1.4 percentage points MoM. The input prices index was 50.9%, up 0.9 percentage points MoM, indicating an overall increase in the price level of inputs used by non-manufacturing enterprises for business operations. By industry, the input prices index for the construction industry was 49.1%, down 2.9 percentage points MoM; the input prices index for the services industry was 51.2%, up 1.5 percentage points MoM. The selling price index was 48.8%, unchanged from the previous month and still below the threshold, indicating that the overall level of non-manufacturing selling prices was lower than in the previous month. By industry, the selling price index for the construction industry was 47.6%, down 0.6 percentage points MoM; the selling price index for the services industry was 49.0%, up 0.1 percentage points MoM. The employment index was 46.0%, down 0.1 percentage points MoM, indicating a slight pull back in the employment prosperity of non-manufacturing enterprises. By industry, the employment index for the construction industry was 42.5%, up 1.4 percentage points MoM; the employment index for the services industry was 46.6%, down 0.4 percentage points MoM. The business activity expectations index was 55.0%, down 1.0 percentage point MoM and still in a relatively high prosperity range, indicating that non-manufacturing enterprises remained confident in market development. By industry, the business activity expectations index for the construction industry was 50.9%, up 1.1 percentage points MoM; the business activity expectations index for the services industry was 55.8%, down 1.3 percentage points MoM. III. Performance of China’s Composite PMI Output Index In February, the composite PMI output index was 49.5%, down 0.3 percentage points MoM, indicating that overall production and business activities of enterprises in China slowed down compared with the previous month. In February, the manufacturing PMI pulled back, while the non-manufacturing business activity index rebounded slightly. —Huo Lihui, Chief Statistician of the NBS Service Survey Center, interprets China’s PMI for February 2026 On March 4, 2026, the NBS Service Survey Center and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In February, affected by factors such as the Chinese New Year holiday, the manufacturing PMI was 49.0, down 0.3 percentage points MoM; the non-manufacturing business activity index was 49.5, up 0.1 percentage points MoM; and the composite PMI output index was 49.5, down 0.3 percentage points MoM. I. The Manufacturing PMI Pulled Back In February, the manufacturing PMI was 49.0, with the prosperity level down from the previous month. Judging from historical data, the PMI in the month that includes the Chinese New Year mostly shows some fluctuations. In particular, this year’s Chinese New Year holiday was extended and fell entirely in mid-to-late February, which had some impact on enterprises’ production and operations, and overall market activity in manufacturing declined. (1) Both supply and demand slowed down. The production index and the new orders index were 49.6 and 48.6, down 1.0 and 0.6 percentage points MoM, respectively, indicating a pullback in manufacturing production and market demand. By industry, the production index and new orders index for industries such as agricultural and sideline food processing and computers, communications and electronic equipment were both above the critical point, with supply and demand prosperity remaining in expansion; in industries such as textiles, apparel and accessories and automobiles, both indices remained below the critical point, with weak market activity. (2) The PMI for large enterprises continued to expand. The PMI for large enterprises was 51.5, up 1.2 percentage points MoM, with production and operations remaining in expansion; small and medium-sized enterprises were more affected by the Chinese New Year holiday, with PMIs of 47.5 and 44.8 this month, down 1.2 and 2.6 percentage points MoM, respectively, and their prosperity levels pulled back. (3) Growth momentum in high-tech manufacturing continued to emerge. The high-tech manufacturing PMI was 51.5, remaining in expansion territory and significantly higher than the overall manufacturing level, indicating a favorable development trend in related industries; the consumer goods industry PMI was 48.8, up 0.5 percentage points MoM, with a rebound in the prosperity level; the PMIs for equipment manufacturing and high energy-consuming industries were 49.8 and 47.8, down 0.3 and 0.1 percentage points MoM, respectively, with their prosperity levels pulling back. (4) Enterprise expectations improved. The index of expectations for production and business activities was 53.2, up 0.6 percentage points MoM, indicating that manufacturing enterprises’ confidence in market development after the Chinese New Year strengthened. By industry, the index of expectations for production and business activities in industries such as general equipment and railway, ship, aerospace and aviation equipment was above 56.0, in a relatively high prosperity range, and related enterprises were more optimistic about near-term industry development. II. Non-Manufacturing Business Activity Index Edged Up Slightly In February, the non-manufacturing business activity index stood at 49.5%, up 0.1 percentage point from the previous month, indicating some improvement in the overall prosperity level of the non-manufacturing sector. (I) The service sector’s prosperity level rebounded. The service sector business activity index was 49.7%, up 0.2 percentage point from the previous month. By industry, driven by the Chinese New Year holiday effect, business volumes grew relatively quickly in industries related to residents’ travel and consumption; among them, the business activity indices for accommodation, catering, and culture, sports and entertainment all remained in the high-prosperity range above 60.0%, while those for retail and air transport rose to above 52.0%. Meanwhile, the business activity indices for capital market services and real estate remained at low levels, with subdued market activity. From the perspective of market expectations, the service sector business activity expectations index was 55.8%, remaining in a relatively high-prosperity range, indicating that service sector enterprises remained optimistic about near-term market developments. (II) The construction sector’s prosperity level declined. Affected by factors such as employees of enterprises returning to their hometowns in large numbers during the Chinese New Year holiday and the suspension of construction at some projects, the construction sector business activity index fell to 48.2%, down 0.6 percentage point from the previous month, and the construction sector’s prosperity level continued to pull back. From the perspective of market expectations, the construction sector business activity expectations index was 50.9%, up 1.1 percentage points from the previous month, returning above the threshold, indicating that construction sector enterprises’ confidence in future industry development had somewhat recovered. III. Composite PMI Output Index Pulled Back In February, the composite PMI output index was 49.5%, down 0.3 percentage point from the previous month, indicating that overall production and business activities of enterprises in China slowed down somewhat MoM. The manufacturing production index and the non-manufacturing business activity index, which make up the composite PMI output index, were 49.6% and 49.5%, respectively.

On Feb 24, 2026, China placed 20 Japanese firms, including Subaru, on an export control watchlist for unverifiable end-use of dual-use items. This signals tighter controls on critical minerals and tech amid geopolitical and supply chain shifts. The analysis examines the firms' supply chain roles and the long-term industrial implications.