Semi-Solid-State Batteries in Vehicles: Breakthrough Achieved, Widespread Adoption Awaits

On August 5, one month after MG announced its "All in on New Energy" strategy, the all-new MG4 began pre-sales. One variant of this model will be equipped with a semi-solid-state battery developed by SAIC and be the first globally to enter mass production. Its price will be announced in September, with volume deliveries scheduled within the year.

As the solid-state battery concept continues to gain traction, the application of semi-solid-state batteries is also riding this wave. Public information indicates that besides the newly launched all-new MG4, models like the Voyah Zhuiguang and Nio ET9 also have plans to launch versions equipped with semi-solid-state batteries. The successive arrival of new vehicles featuring semi-solid-state batteries not only provides consumers with new product choices but has also sparked a lively industry debate on whether this marks the inaugural year for semi-solid-state battery installation in vehicles.

Semi-Solid-State Battery Installation is Accelerating Penetration

At the pre-sales launch event, Chen Cui, General Manager of SAIC MG Brand Business Division, stated that the all-new MG4 would be equipped with the second-generation semi-solid-state battery from SAIC Qingtao. This variant, dubbed the "Anxin Edition," demonstrates excellent performance in metrics such as low-temperature discharge power and low-temperature energy retention rate. Regarding safety, through breakthroughs in underlying materials like semi-solid-state electrolytes, the battery pack showed no smoke or fire even under extremely rigorous 10-pin three-way penetration tests, fundamentally preventing spontaneous combustion.

Specifically, this 70kWh semi-solid-state battery contains only 5% liquid electrolyte, significantly lower than the current industry standard of 10%-15% for semi-solid-state batteries. Its energy density reaches 180 Wh/kg, providing a CLTC range of 537 km. Compared to traditional lithium iron phosphate batteries, its range retention rate at -7°C improves by 13.8%. Furthermore, as this semi-solid-state battery replaces most of the liquid electrolyte with solid electrolyte, it fundamentally addresses combustion risks. It has passed a 360° nail penetration test without catching fire.

It is reported that SAIC Qingtao is a joint venture established in 2023 by SAIC Group and Qingtao Energy, with Qingtao Energy holding a 51% stake and SAIC Group holding 49%. At that time, SAIC Group announced that both companies possess complementary strengths in technological capabilities and the industrial chain. The joint venture aims to create a cost-effective new generation of solid-state batteries using low-cost raw materials and innovative technology while maintaining high safety standards, and to achieve industrial application in vehicles.

At the "Forward into the Next Decade" SAIC Group New Energy Technology Launch Conference held in May 2024, the company's three-phase solid-state battery strategy was first unveiled: Phase 1: Semi-solid-state batteries with approximately 10% liquid electrolyte content, targeting an energy density exceeding 300Wh/kg.Phase 2: Quasi-solid-state batteries, reducing liquid content to 5%, achieving structural upgrades through dry-process electrodes and high-voltage cathode materials.Phase 3: All-solid-state batteries with 0% liquid content, utilizing new anode materials and densification processes to achieve overall density exceeding 98%.

There are also reports that in 2025, SAIC Group plans to launch multiple models equipped with semi-solid-state batteries, including brands such as IM, Feifan, Roewe, and MG. These vehicles will feature longer driving ranges and faster charging speeds, positioning them to stand out in the market competition.

This inevitably sparks imagination about whether the era of semi-solid-state battery vehicles is truly beginning. In April this year, the Nio ET9 equipped with a semi-solid-state battery made its debut at the 2025 Shanghai Auto Show. In 2024, Nio's 150kWh semi-solid-state battery pack officially entered mass production, achieving a single cell energy density of 360Wh/kg and a pack energy density of 260Wh/kg. It utilizes a solid-liquid hybrid electrolyte, an ultra-high nickel cathode, and a silicon-carbon composite anode. The supporting ET7 model has achieved a tested range exceeding 1000 km, and the battery is compatible with all Nio models.

Recently, Yang Hongxin, Chairman of SVOLT Energy, also revealed that the company will trial-produce its first-generation semi-solid-state battery, with a capacity of 140Ah, in the fourth quarter of 2025 on a 2.3GWh semi-solid-state mass production line. This is the same semi-solid-state battery that SVOLT will supply for the next-generation BMW MINI, with mass supply planned for 2027.

From the "Anxin Edition" MG4 undertaking the task of achieving volume sales for semi-solid-state batteries, to SVOLT Energy employing diaphragm transfer technology for low-cost mass production, market research institutions predict that over the next three years, the market penetration rate of semi-solid-state batteries will enter a period of accelerated growth. They will no longer be exclusive to a few high-end models but will gradually penetrate markets across all price segments, reshaping the competitive landscape of the power battery industry.

Technology Positioning: A Transitional Phase Balancing Three Factors

Although the terms differ by only one character, semi-solid-state and solid-state batteries are two distinct battery forms. The industry classifies solid-state batteries based on the solid electrolyte content within the cell:Semi-solid-state batteries have a solid electrolyte content reaching 90% to 95%.Quasi-solid-state batteries have a further increased proportion of solid electrolyte, typically above 95%, representing a transitional stage from semi-solid-state to all-solid-state batteries.All-solid-state battery cells are completely composed of solid electrode and solid electrolyte materials.

It is understood that semi-solid-state batteries are created by introducing solid-state electrolytes into lithium-ion batteries while retaining a small amount of liquid electrolyte. The positive and negative electrodes can be made of NMC/lithium iron phosphate/lithium manganese iron phosphate + graphite/silicon-carbon/lithium metal. The manufacturing process still mainly follows traditional lithium-ion battery production and assembly techniques. Solid electrolytes are primarily divided into sulfide, oxide, polymer, and composite solid electrolyte routes.Market research indicates that in the near term, the oxide route is the absolute main force in the commercialization of semi-solid-state batteries. It offers good chemical stability and relatively lenient requirements for the production environment. By combining with a small amount of liquid,it has pioneeringly resolved the "interface" challenge, achieving a better balance among technology, cost, and manufacturing.

Currently, numerous companies both domestically and internationally are involved in solid-state battery development. Automakers, research institutions, and battery/midstream materials enterprises—including many startups—are all investing in the R&D and strategic planning of new technologies. Innovations in process technology and changes in material systems are creating new opportunities across the entire industry chain.

According to a research report released by Oriental Securities, when breaking down the analysis by sector:Independent brands and emerging automakers are at the forefront of semi-solid-state battery installation,supporting battery manufacturers have overall capacity planning that has reached the hundred GWh level,the development and mass production progress of electrolyte materials relatively lags behind,high-nickel ternary cathode materials already possess mature mass-production capabilities,the mass production scale of silicon-based anodes remains relatively small and awaits further expansion.

The market positioning of semi-solid-state batteries is essentially the result of balancing three factors: technological maturity, cost control, and user demands. It is not merely a simple upgrade from liquid batteries, but rather a distinct technological ecosystem shaped during a specific historical period.

In the view of Cao Guangping, the relationship between semi-solid-state batteries and liquid batteries can be summarized in three aspects:first, regarding technical principles, semi-solid-state batteries are essentially a compromise and transitional solution from liquid to all-solid-state batteries. They retain some structures of liquid batteries, such as separators and a small amount of electrolyte, while simultaneously introducing solid-state electrolytes. Safety is improved by reducing the electrolyte content, but their performance still relies on the conventional technology of liquid batteries.Second, in terms of performance development, semi-solid-state batteries suppress the growth of lithium dendrites through the use of solid-state electrolytes and offer better thermal stability than liquid batteries. When paired with new materials such as lithium metal anodes, they can surpass the performance limits of liquid batteries, although the technological maturity is currently still relatively low.Third, concerning production compatibility for industrialization, semi-solid-state batteries can reuse approximately 70% of the production equipment used for liquid batteries, requiring only the addition of new processes like solid-state electrolyte coating. While the production cost is currently higher than that of liquid batteries, it is expected to decrease with large-scale mass production.

Tightening Safety Requirements Coupled with Evolving Demand Drive Advancement

Chen Jingwen, TMT-Information Technology Industry Lead Partner and Co-Head of Transaction Support Services at Grant Thornton, told reporters that semi-solid-state batteries represent a transitional phase from liquid to all-solid-state batteries. The core difference between semi-solid-state and liquid battery products lies in the "electrolyte state." While solid-state batteries use solid electrolytes for both the electrolyte and separator, semi-solid-state batteries introduce solid electrolytes while retaining a small amount of liquid electrolyte, achieving a "solid-liquid coexistence" system.

Chen Jingwen stated, "The newly released 'Safety Requirements for Power Batteries for Electric Vehicles' (GB38031-2025), which will be officially implemented on July 1, 2026, makes 'no fire, no explosion' a mandatory requirement. This signifies that the importance placed on battery safety risks in the new energy vehicle market has been elevated to a new level. Generally, semi-solid-state batteries are considered an effective technical solution to enhance both energy density and safety performance. Initially, semi-solid-state batteries were applied in high-end models, such as the Nio ET7 and IM L6. The SAIC 'Anxin Edition' MG4 will accelerate the commercialization progress of semi-solid-state batteries, leading other automakers to speed up the iteration of power battery technology."He added, "Due to the market's emphasis on battery safety and changes in product supply and demand, the domestic power battery supply chain will continue to iterate and transform. Anodes, cathodes, electrolyte materials, and equipment for semi-solid-state batteries are expected to become mainstream in this sector."

Expectations for the performance of solid-state batteries have added further momentum to the commercial application of semi-solid-state batteries. Currently, mid-to-high-end pure electric vehicle models generally offer a driving range of 600-800 kilometers. However, models like the SAIC IM L6 and Nio ET7, equipped with semi-solid-state battery packs boasting an energy density exceeding 350 Wh/kg, have enabled these vehicles to achieve a driving range of over 1,000 kilometers.

As models equipped with semi-solid-state batteries gradually enter mass production and the market, coupled with the orderly advancement of industrial chain capacity building, upstream and downstream industries, capital markets, and end consumers are becoming increasingly optimistic about the commercial prospects of semi-solid-state battery technology in the automotive field, with confidence continuously rising.

Chen Jingwen stated that vehicle manufacturers and supply chain companies have consistently invested in R&D to seek breakthroughs in battery performance, while consumers are particularly concerned about multiple factors such as high safety, energy density, and cycle life of new energy vehicle batteries. Semi-solid-state batteries currently represent a technological solution capable of balancing these various demands. Moreover, the manufacturing processes for semi-solid-state batteries and liquid batteries share certain overlaps, allowing enterprises to avoid large-scale modifications or upgrades to existing production equipment and assembly lines. From a medium to long-term perspective, the cost of semi-solid-state batteries is expected to fall below that of liquid batteries, becoming a mass-production technology that combines performance advantages with cost competitiveness. This provides automakers with greater motivation to develop vehicle models that meet market demands.

According to a research report from Founder Securities, preliminary estimates indicate that by 2030, the shipment volume of semi-solid-state batteries is expected to reach 147 GWh, while that of all-solid-state batteries is projected to hit 63 GWh. The market size for semi-solid-state battery equipment is forecasted to reach 220 billion yuan, and that for all-solid-state battery equipment is estimated at 189 billion yuan.Currently, the solid-state battery equipment sector has formed a dual-driven landscape characterized by "transformation of traditional lithium battery leaders + specialization of emerging players." Leading liquid battery equipment manufacturers are leveraging their large-scale manufacturing experience to rapidly enter the market. With the initial commercialization of solid-state batteries expected around 2025, domestic equipment suppliers are likely to replicate the development trajectory of photovoltaic and lithium battery equipment, positioning themselves to dominate the global high-end equipment market.

A more aggressive market study suggests that in 2025, semi-solid-state battery installation will enter an introduction phase. After experiencing a growth phase in 2026, it is expected to enter an acceleration phase in 2027. By then, its penetration rate in the pure electric vehicle market could reach up to 12%. The penetration rates are projected to reach 25% in the high-end vehicle market (priced above 300,000 RMB), 15% in the mid-to-high-end segment (priced between 200,000-300,000 RMB), and 5% in the mass-market segment (priced between 100,000-200,000 RMB).

Semi-Solid-State Batteries: Not Quite There Yet

The installation of semi-solid-state batteries marks another milestone in battery industrialization. However, while external outlook on market prospects remains generally positive, their mass production and implementation still face a series of tests, including product optimization, cost control, and the direction of technological evolution.

Chen Jingwen explained that compared to liquid batteries, the advantages of semi-solid-state batteries primarily stem from improvements in energy density and safety, a wider operating temperature range, and longer cycle life. However, as they are still in the early stages of development, semi-solid-state batteries face challenges such as relatively low mass production yield, lower charge rates, and cost control.

Semi-Solid-State Batteries: Not Yet Fully Mature

The installation of semi-solid-state batteries represents another milestone in battery industrialization. However, despite generally positive external market outlooks, their mass production and implementation still face a series of challenges, including product optimization, cost control, and the direction of technological evolution.

Chen Jingwen explained that compared to liquid batteries, the advantages of semi-solid-state batteries primarily lie in improved energy density and safety, a wider operating temperature range, and longer cycle life. However, as they are still in the early stages of development, semi-solid-state batteries face challenges such as relatively low production yield, lower charging rates, and cost control.

Cao Guangping stated, “Semi-solid-state batteries still face cost and performance bottlenecks.With low yield rates and high costs, their energy density and rate performance have not yet significantly surpassed those of liquid batteries. As a result, automakers still primarily rely on liquid batteries. Limited application scenarios also pose a challenge—semi-solid-state batteries are initially mainly used in high-end models, and their market penetration rate may remain relatively low for a certain period.”However, from a long-term substitution perspective, semi-solid-state batteries can drive and facilitate technological iteration. As solid electrolyte technology matures, they will gradually transition toward all-solid-state batteries, ultimately achieving the goals of high energy density and safety, progressively replacing liquid batteries, and thereby restructuring the industrial chain.The industrialization of semi-solid-state batteries will spur growth in demand for new materials such as solid electrolytes and separator coatings. Traditional liquid battery supply chain companies—including electrolyte and separator manufacturers—will need to transform or collaborate. This could eventually lead to an evolution in the market landscape. For example, the high-end battery market may experience segmentation. Semi-solid-state batteries, leveraging their advantages in high safety and long driving range, could capture market share in the premium new energy vehicle segment, prompting automakers to upgrade their technology.

Liquid battery companies may also enhance safety by improving electrolyte formulations and optimizing separator technology, creating differentiated competition with semi-solid-state batteries. Meanwhile, the mid- to low-end markets are expected to remain dominated by liquid batteries for the time being.Chen Jingwen stated,”If the semi-solid-state battery market continues its upward trajectory, I believe the biggest beneficiaries will be upstream material suppliers, followed by midstream equipment suppliers.Semi-solid-state batteries replace a portion of the liquid electrolyte with oxide or polymer solid electrolytes. The demand for solid electrolytes will accelerate, enabling relevant companies to promote joint R&D with automakers, enhance design capabilities, and establish a technological first-mover advantage. However, traditional separator and electrolyte suppliers will face transformation pressure.Semi-solid-state batteries require the introduction of new equipment or detailed upgrades to existing equipment in certain process stages. This will directly drive demand for molds, full-line equipment, and dry electrode equipment. Companies capable of designing semi-solid or all-solid-state equipment will dominate the market, while suppliers focused solely on liquid battery equipment face the risk of being phased out.Downstream vehicle manufacturers are gradually shedding their traditional "automaker" label and beginning to transform into energy technology companies. They may expand into energy services centered around battery technology, creating dual opportunities in both technology and markets for future development.

In the short term, semi-solid-state batteries will have limited impact on the liquid battery market landscape. However, in the long run, they will drive battery technology toward solid-state evolution and accelerate industry reshuffling. Cao Guangping believes that currently, promoters of semi-solid-state batteries come partly from traditional battery enterprises and partly from battery newcomers. Both automakers and battery companies have initiated layouts in this area. The development of its industrial chain could potentially change the current situation where first-tier players have long monopolized the main market, and the industry may consequently form a new competitive landscape.