Solid‑State Battery Weekly Review Hybrid Solid‑Liquid Mass Production Set, All‑Solid‑State R&D Continues

Vardhman Special Steels reported a strong Q1 FY27, with standalone net profit more than doubling year on year to INR 41.2 crore (USD 4.8 million) as higher sales volumes, improved realizations and margin expansion lifted earnings. Revenue rose 12.1% YoY to INR 486 crore (USD 56.5 million), while the company said its forging expansion project with Japan's Aichi Steel remains on schedule.

Toyota Vice Chairman Koji Sato has proposed that Japanese automakers adopt common standards for selected vehicle components, including steel, wiring harnesses and plastics, to reduce costs and improve efficiency. The initiative aims to strengthen Japan's automotive competitiveness as Chinese EV makers continue expanding their market share across Europe, China and Southeast Asia.

According to industry sources on July 14, LG Chem has been supplying battery cathode materials to Toyota Motor Engineering & Manufacturing North America (TEMA) since the second quarter. Supply volumes are also gradually increasing. The two companies signed a KRW 2.86 trillion cathode materials supply contract in October 2023, with the contract running through December 2030.

In Q2 2026, the solid‑state battery industry reached a critical policy and standards inflection point. China’s MIIT designated all‑solid‑state batteries as a key R&D priority, and the world’s first national standard for automotive solid‑state batteries (GB/T 43568‑2026) took effect on July 1.

In the second half of last year, ahead of the halving of the NEV purchase tax rebate, ternary cathode orders climbed steadily, hitting record highs month after month. At that time, the market generally expected ternary demand growth for 2026 to be within 10%. But the actual results for the first half of this year came in much stronger. According to SMM, domestic ternary cathode production reached 493,000 metric tons in H1 2026, up 40% YoY, while global ternary cathode output reached 611,500 metric tons, up 24% . Meanwhile, CAAM data shows that NEV sales in China (including exports) reached 7.445 million units in H1 2026, up only 7% YoY, with domestic sales actually contracting by 13%. Given such modest growth in vehicle sales, where did the strong performance of ternary cathode come from? The answer lies in two key factors: a rising share of premium vehicle models and a rapid increase in battery capacity per vehicle . The halving of the purchase tax rebate has had a greater impact on low-priced vehicles. For A00-class models priced under RMB 50,000, the exemption was a major selling point—now, buyers face an additional tax payment of several thousand yuan, significantly eroding their cost advantage. In contrast, for mid-to-high-end models priced between RMB 200,000 and 300,000, the RMB 15,000 rebate cap still covers most of the tax, so the actual cost increase perceived by consumers is limited . At the same time, trade-in subsidy rules shifted from a fixed-amount structure to a tiered system based on the new vehicle price—higher-priced purchases yield subsidies closer to the cap, effectively steering consumer demand toward the premium segment . As a result, the share of B-segment, C-segment, and SUVs in China's NEV passenger car mix rose from 68.3% in 2025 to 73.6% in H1 2026—and these are precisely the models that predominantly use ternary battery cells. The rising share of premium models also directly lifted average battery capacity per vehicle . In May, the average battery capacity of BEV passenger cars reached 62 kWh, up 11% year-on-year, while PHEV passenger cars reached 37 kWh, up 37%. While automakers have been proactively increasing battery sizes to meet market demand, the more significant driver has been the compositional shift toward premium vehicles. This explains the apparent paradox: vehicle sales growth has been moderate, yet cathode material demand has surged—the key lies in the increase in battery capacity per unit . Overseas markets also contributed to the growth. European NEV sales rose approximately 30% year-on-year in the first half of the year, supported by local subsidy policies, high oil prices that favor NEVs, and the aggressive expansion of Chinese brands. Given that ternary batteries still account for more than 60% of Europe's NEV passenger car market , leading battery manufacturers serving the European market—such as CATL, EVE, AESC, and LGES—have maintained high procurement volumes of ternary cathode materials from China this year. Another notable feature of this year's production schedule has been its atypical seasonal pattern, largely influenced by raw material price volatility and policy shifts. On the raw material front, pricing between domestic ternary battery manufacturers and cathode producers is generally settled using a M-1 month metal price mechanism. This gives battery makers a strong incentive to build inventories ahead of anticipated price increases . For instance, in January, the SMM average monthly price of lithium hydroxide (coarse grains) surged to RMB 147,100 per ton, but the settlement price referenced the December price of RMB 88,800 per ton. This translated into a cost saving of more than RMB 26,000 per ton of cathode material, which is why production remained robust even during a traditionally slow month. A similar pattern played out in May, when the monthly average lithium hydroxide price rose by about RMB 20,000 per ton from the previous month, prompting another wave of restocking and driving cathode orders beyond expectations. On the policy side, the most significant impact came from the removal of the VAT rebate on ternary cathode exports, which pulled a large volume of export orders forward into Q1, breaking the typical seasonal slowdown. Domestic production in Q1 reached 236,000 metric tons, up 47% YoY. Notably, after the rebate was officially withdrawn, overseas orders did not drop sharply—Q2 still posted 34% YoY growth. This resilience can be attributed to two factors: first, overseas battery makers remain heavily reliant on Chinese cathode suppliers , who offer clear advantages in product quality, stable mass-production capabilities, and cost, making it difficult to switch suppliers in the short term. Second, overseas end-market demand remains solid , with popular models in Europe (Volkswagen ID series, BMW Neue Klasse, Renault, Hyundai IONIQ series, Tesla, etc.) and key models in Japan and Korea (Toyota, Hyundai, Kia, Tesla, etc.) continuing to rely on ternary chemistries. With order books full and procurement needs urgent, customers have little room to qualify new suppliers, which has only reinforced existing partnerships. Looking ahead to the second half of the year, the upcoming removal of the VAT rebate on lithium battery exports next year is expected to bring some orders forward into 2026. However, the market has already priced this in, and battery manufacturers have ample time to plan their inventory strategies, so a concentrated surge similar to the one seen ahead of the ternary rebate cancellation is unlikely. The purchase tax rebate will remain at the halved level next year and will not be fully phased out until the year after, so there is no additional pull-forward effect for Q4 2026. With orders already exceeding expectations in the first half and battery makers continuing to build inventories, the traditional "Golden September-Silver October" peak may be less pronounced this year. Still, seasonal patterns persist, and the market's inherent restocking momentum remains, so Q4 still warrants attention. SMM currently forecasts: 1.02 million metric tons of domestic ternary cathode production for 2026, up 24% year-on-year; 240,000 metric tons overseas, down 2%; and a global total of 1.26 million metric tons, up 18% .

On July 7, 2026, the first batch of production line equipment was moved into the workshop of Glory Sunergy Global (Tieling)'s 10GWh solid-state battery AI intelligent manufacturing project, marking a decisive shift from infrastructure construction to equipment installation and commissioning. The project covers three business segments: system integration, material recycling, and semi-solid (solid-liquid hybrid) battery manufacturing.

On July 9, Xingye Silver&Tin's stock price fell, closing down 2.65% at 32.35 yuan per share on the 9th. In terms of news: On July 8, Xingye Silver&Tin stated on the investor interaction platform that the company's current capacity supply mainly relies on existing mines in operation, and details of annual capacity can be found in the company's periodic reports. On July 8, Xingye Silver&Tin stated on the investor interaction platform that, the preparatory work for the Yinman Phase II project has been largely completed, and the company is currently coordinating and finalizing arrangements for the commencement of construction, planning to start in July. Once the specific start date is determined, the company will disclose it through an announcement as soon as possible. On July 8, Xingye Silver&Tin stated on the investor interaction platform that, according to the JORC Code, the Competent Person SRK only uses the current Measured and Indicated Resources as the basis for ore reserve conversion and the production schedule plan. However, in actual operations, through continuous production drilling and exploration, the company may upgrade some Inferred Resources, which will then be incorporated into the actual mining and processing plan. Meanwhile, the Competent Person SRK uses Deswik software to generate stope shapes through stope optimization, which may be inconsistent with the stope layouts adopted in the company's routine production planning. Therefore, the company's actual future production schedule and operating performance may differ from the production schedule and related forecasts presented by the Competent Person SRK. On July 8, Xingye Silver&Tin stated on the investor interaction platform that regarding the production of various metals in H1, please refer to the 2026 Semi-Annual Report scheduled to be released on August 29, 2026, in designated information disclosure media. On the evening of June 30, Xingye Silver&Tin announced that it plans to acquire a 25% stake in Atlas Tin SAS held by Toyota Tsusho Corporation and Nittetsu Mining Co., Ltd. through a newly established overseas subsidiary, for a total consideration of $23.1136 million. After the transaction, the company will indirectly hold 100% equity in the target company, achieving full ownership of the Achmmach Tin Mine Project, aiming to simplify the governance structure, improve decision-making efficiency, and maximize the release of value from the tin ore assets. In terms of performance: Xingye Silver&Tin disclosed in its Q1 report that in January–March 2026, the company achieved operating revenue of 2,129.8691 million yuan, an increase of 85.32% over the same period last year; net profit attributable to shareholders of the listed company was 1,337.6722 million yuan, an increase of 257.32% over the same period last year. As of March 31, 2026, the company’s total assets were 19,688.8316 million yuan, and the net assets attributable to shareholders of the listed company were 10,825.4666 million yuan. Revenue composition: For January–March 2026, the proportion of operating revenue from the company’s main ore products to total operating revenue was as follows: ore-derived silver RMB1,410.11 million, accounting for 66.21%; ore-derived tin RMB234.04 million, 10.99%; ore-derived zinc RMB228.12 million, 10.71%; ore-derived lead RMB71.85 million, 3.37%; ore-derived antimony RMB53.10 million, 2.49%; ore-derived gold RMB51.02 million, 2.40%; ore-derived iron RMB44.17 million, 2.07%; ore-derived copper RMB35.65 million, 1.67%; ore-derived indium RMB524,100, 0.02%; of which, ore-derived tin and ore-derived silver combined accounted for 77.19%. Xingye Silver&Tin stated in its Q1 report: Operating profit for the current period increased by 238.16% compared with the previous period, total profit increased by 236.36%, and net profit attributable to owners of the parent company increased by 257.32%; the main reasons were: Selling prices of the company’s main ore products such as silver and tin rose YoY during the reporting period; Yubang Mining’s capacity was gradually released, leading to a significant YoY increase in ore-derived silver production and sales volume; the transfer of a 60% equity interest in Shuangyuan Nonferrous resulted in investment income of RMB321 million. Xingye Silver&Tin’s published 2025 annual report shows that in 2025, the company achieved operating revenue of RMB5,555.25 million, up 30.09% YoY; total profit of RMB2,096.24 million, up 18.75% YoY; and net profit attributable to shareholders of the listed company of RMB1,704.24 million, up 11.40% YoY. According to Xingye Silver&Tin’s announcement: In 2025, the proportion of operating revenue from the company’s main ore products to total operating revenue was as follows: ore-derived silver RMB2,175.78 million, accounting for 39.17%; ore-derived tin RMB1,649.64 million, 29.70%; ore-derived zinc RMB975.87 million, 17.57%; ore-derived lead RMB220.95 million, 3.98%; ore-derived iron RMB180.38 million, 3.25%; ore-derived copper RMB133.00 million, 2.39%; ore-derived antimony RMB100.36 million, 1.81%; ore-derived gold RMB82.34 million, 1.48%; ore-derived bismuth RMB16.67 million, 0.30%; of which, ore-derived tin and ore-derived silver combined accounted for 68.86%. Regarding its main business and key performance drivers, Xingye Silver&Tin stated in its 2025 annual report: "The company is a large-scale mining group principally engaged in the exploration, mining and mineral processing of non-ferrous metals and precious metals."As of the disclosure date of this report, the Company has more than 20 subsidiaries, including 8 in-production mining companies, namely Yinman Mining, Qianjinda Mining, Yubang Mining, Rongguan Mining, Xilin Mining, Rongbang Mining, Ruineng Mining, and Bosheng Mining; the Achmmach tin mine of Atlas Tin SAS under Atlantic Tin is in the construction phase; Tanghe Shidai Mining is in the suspension phase; Yitong Mining and Yunnan Xingui are in the exploration phase. Hainan Fund is mainly engaged in equity investment management; Xingye Gold (Hong Kong) is principally involved in metals and mining trade and enterprise mergers and acquisitions, and is responsible for expanding markets outside China and acquiring high-quality mineral resources ex-China; Hainan Guomao and Tianjin Guomao are mainly engaged in the sale of non-ferrous metal ore products and the procurement of some raw materials; Xingye Ruijin primarily conducts process research, technology R&D, and upgrading in areas such as prospecting, mining and dressing, and the comprehensive recycling and utilization of tailings. Tibet Shannan Antimony & Gold, Tibet Xinda Mining, and Hinggan League Fuxingtun Mining serve as the Company's regional resource integration platforms. During the reporting period, the Company successfully acquired an 85% equity stake in Yubang Mining. Based on statistics as of the end of 2023 compiled by The Silver Institute, the Yubang single-silver mine ranks first in Asia and fifth globally. This acquisition further strengthened the Company's resource advantages and laid a solid resource foundation for its sustainable development. Simultaneously, using its subsidiary Xingye Gold (Hong Kong) as the investment vehicle, the Company intensified its investment in mineral resources ex-China and successfully acquired a 100% equity stake in Atlantic Tin. This acquisition is a key measure in implementing the Company's "going global" strategy. According to the classification criteria for large-scale tin mines in the "Standards for Classification of Mineral Resources/Reserves Scale" (DZ/T 0400-2022), the Achmmach tin mine owned by Atlantic Tin is now equivalent to 5 large deposits. Through this integration of tin resources outside China, the Company has further improved its international tin mining footprint and reserved significant strategic resources for its long-term development. The Company's primary source of performance is its non-ferrous metal mining and dressing business. During the reporting period, revenue from the non-ferrous metal mining and dressing segment accounted for 99.64% of total operating revenue in 2025. Key factors affecting the operating performance of this segment include the production and sales volumes of major products, market prices, and the costs of the non-ferrous metal and precious metal mining and dressing business. Regarding its operating plan, Xingye Silver&Tin stated in its 2025 annual report: 2026 is the final year of the Company's "Second Three-Year" Plan. The Board of Directors will focus closely on the theme of high-quality development, fully implement established work targets, continue to deepen the concept of "Trust and Collaboration," and make every effort to achieve the final targets of the "Second Three-Year" Plan, with an emphasis on the following tasks: 1. Uphold the bottom line of safety and environmental protection. Using the 2026 "Year of Safety Management Implementation" initiative as a lever, comprehensively consolidate safety responsibilities, reinforce the achievements of the "Collective Calm Year in Safety," strengthen risk anticipation and process control, and resolutely prevent all types of safety and environmental incidents to achieve safe, steady, green, and low-carbon development. 2. Fully advance the construction of key projects, strengthen whole-process management of project budgets, schedules, and quality, and coordinate the implementation of the Yinman Mining 2.97 million mt expansion, the Yubang Mining 8.25 million mt expansion, the Morocco project, the Budong Yin’gen Mining (entrusted) project, and others, ensuring they are completed on schedule to reach full production and release capacity benefits. 3. Continuously strengthen exploration and reserve expansion, properly balance production operations with geological exploration, steadily advance exploration in existing mines and surrounding areas, accelerate the conversion and upgrading of resources into reserves, and constantly consolidate the resource base. 4. Deepen industrial synergy and resource integration, leverage the core regional advantages of Inner Mongolia, and steadily expand resource deployment outside China; adhere to the focus on silver and tin as the main business, enriching and optimizing resource varieties. Solidly promote the subsequent acquisition and integration of Weiling Co., actively track high-quality mineral project opportunities in and outside China, and enhance overall competitiveness through synergistic industrial M&A. 5. Further strengthen institutional enforcement and internal control management, drive the effective implementation of all systems, processes, and control requirements, and improve the company’s lean management; strengthen enforcement, ensuring production plans, comprehensive budgets, and all work deployments are fully executed, and promote the deep integration of corporate culture with business management. 6. Fully advance preparations for the Hong Kong stock listing, accelerate the establishment of dual capital market platforms at home and abroad, enhance cross-border capital operation capabilities, provide stronger financial support for the company’s resource integration and strategy execution, and push the company’s high-quality sustainable development to a new level. Looking back at the price performance of tin in 2025 and Q1 this year, we can see: the average price of SMM 1# tin spot on December 31, 2025 was 326,450 yuan/mt, up 80,450 yuan/mt from the average of 246,000 yuan/mt on December 31, 2024, for a 32.7% increase in 2025. The SMM 1# tin spot price on March 31 this year was 371,550 yuan/mt, up 45,100 yuan/mt from the average of 326,450 yuan/mt on December 31, 2025, for a 13.82% increase in Q1 this year. As for tin spot prices: SMM 1# tin spot was quoted at 408,500–411,000 yuan/mt, with an average price of 409,750 yuan/mt, up 0.11% from the previous trading day. On July 9, tin market transactions displayed phased characteristics along with futures fluctuations. Throughout the day, futures maintained wild swings; when intraday prices dipped to near 400,000 yuan/mt, spot transactions recovered slightly from the previous trading day, with some enterprises showing tentative purchase willingness and making small-scale purchases. However, as futures prices rose and surged in the afternoon, the buyer’s chasing-high sentiment rapidly cooled. Overall, the current tin market trend remains closely tied to macro sentiment. From a fundamental perspective, however, the release of downstream rigid demand during the recent price correction consumed some spot cargo supply, resulting in a stalemate between low inventory and weak trading. In the near term, the most-traded SHFE tin contract is expected to maintain a fluctuating trend. Looking back at the spot price performance of silver in 2025 and Q1 2026, the SMM 1# silver (Ag99.99%) average price on December 31, 2025 was 18,430 yuan/kg, and on December 31, 2024 was 7,440 yuan/kg, with the average price rising by 10,990 yuan/kg in 2025, a gain of 147.71%. The SMM 1# silver price on March 31 was 18,341 yuan/kg, which fell by 89 yuan/kg (down 0.48%) compared to the December 31, 2025 average of 18,430 yuan/kg. In the silver spot market on July 9, some suppliers began offering at premiums. Overall demand was weak, resulting in sluggish trading, with downstream transactions mainly driven by negotiations. Morning quotes in Shanghai were concentrated around parity to a premium of 10 yuan/kg against the TD contract. Large producers’ delivery brand offers were firm, but actual transaction prices might dip toward the lower end. In Shenzhen, some nationally-standard sources were quoted around a small discount to a premium of 5 yuan/kg against the TD contract, with small premium quotes being cleared quickly. Premiums against the most-traded SHFE 2608 contract were quoted at a discount of 15 to 35 yuan/kg on the day. Overall, the precious metals macro trend was falling under pressure, weighed down by both heightened geopolitical risks and divergence among US Fed policy stances. Spot premiums weakened slightly, with transactions leaning toward parity. Demand was soft, reflecting a ‘rush to buy amid continuous price rise and hold back amid price downturn’ mentality in the market. Recommended Reads:

On July 7, Toyota Motor Corporation is shifting production of its Tacoma midsize pickup truck from a factory in Mexico to San Antonio, as part of the automaker's $3.6 billion upgrade plan for the Texas plant. The company will build a second production line at the San Antonio factory, creating approximately 2,000 new jobs by 2030. The factory currently mainly produces full-size pickup trucks and SUVs. The expansion of the San Antonio plant will double its facility size to approximately 5 million square feet. Since its groundbreaking 23 years ago, Toyota's cumulative investment at this site will reach $8.3 billion.

China’s rare earth exports in H1 2026 operated under a temporary regulatory pause, set to expire on November 10. This resulted in a bifurcated market: light rare earths traded efficiently with high volumes, while heavy rare earths remained constrained, creating significant price premiums.