China's solid-state battery sector nears its first A-share IPO

by GAO Jing

China's solid-state battery sector is moving closer to its first A-share listing. Beijing WeLion New Energy Technology Co., Ltd. has begun preparations for a ChiNext IPO, after signing a listing guidance agreement with China Securities Co., Ltd. on Dec. 8, according to disclosures published on Dec. 11 by the China Securities Regulatory Commission.

Founded in 2016, WeLion develops solid-state lithium batteries, positioning itself as a specialist supplier to China's fast-growing electric vehicle and energy-storage markets.

The company was co-founded by CHEN Liquan, an academician of the Chinese Academy of Engineering, alongside researchers from the Chinese Academy of Sciences. YU Huigen, who serves as chairman and chief executive, is the controlling shareholder, with effective control of about 29% of the company.

Corporate records show WeLion has completed nine funding rounds, drawing backing from investors including Huawei-backed Hubble Investment, NIO Capital and Geely Holding.

Its latest D+ round, completed in late September, brought in capital from Beijing-backed industrial funds focused on green energy and advanced materials, as well as new investors such as Guangdong Energy Group and ICBC Capital.

In the 2025 Hurun Global Unicorn Index, WeLion was valued at about 18.5 billion yuan (about US$2.6 billion), reflecting investor interest in next-generation battery technologies despite long commercialization timelines.

MO Ke, a China-based battery industry analyst, said solid-state battery development and manufacturing are highly capital-intensive, and that an IPO could provide WeLion with improved access to funding.

Solid-state batteries, which replace flammable liquid electrolytes with solid materials, are widely seen as a potential next step beyond today's lithium-ion cells, offering improvements in safety and energy density. Large-scale commercialization, however, remains uncertain.

Globally, Toyota Motor targets commercial deployment of all-solid-state batteries between 2027 and 2028, while LG Energy Solution, Samsung SDI, and SK On are accelerating development. U.S. startups QuantumScape and Solid Power have raised capital through SPAC listings, backed by automakers including Volkswagen and Ford.

In China, solid-state-focused startups such as WeLion and QingTao Energycompete alongside established battery makers including CATL (300750.SZ), BYD (002594.SZ), and Gotion High-Tech (002074.SZ), which continue to rely on liquid-based batteries for scale.

Most batteries currently marketed in China as "solid-state" remain semi-solid, retaining a small amount of liquid electrolyte. Industry players generally expect small-batch deployment around 2027, with mass production unlikely before 2030, a gap that has prompted regulators to draft clearer classification standards.

At the 2025 World Power Battery Conference, WANG Fang, chief scientist at the China Automotive Technology and Research Center, said China is drafting national standards that would classify batteries into solid-state, solid–liquid hybrid, and liquid categories.

WeLion's commercial products are all semi-solid, including a 360 Wh/kg power cell that entered mass delivery to NIO in late 2023, as well as energy-storage and low-altitude mobility batteries supplied to domestic and overseas clients.

Whether advances in solid-state technology can translate into scalable production—and sustainable returns for investors—remains a key uncertainty for investors as the company moves toward public markets.