Mass production of solid-state batteries begins! SAIC leads the way in both technology and profitability

2026 is defined by the industry as the "first year of solid-state battery mass production", and on this key track, SAIC has taken the lead in accelerating. In early February, SAIC Motor announced the Chengdu sulfide solid-state battery production line in cooperation with Qingtao Power, completing the full integration with SAIC's MG series vehicle production line. On February 16, SAIC officially held a solid-state battery passenger vehicle mass production conference, achieving mass production of models equipped with solid-state batteries, and becoming the first domestic car company to achieve full-chain collaboration of "battery-vehicle-supply chain". This implementation is not only a breakthrough at the technical level, but also establishes a clear and implementable profit model, allowing solid-state batteries to move from laboratory concepts to market commercialization. This article is based on the latest authoritative information in February 2026, and provides an in-depth analysis of why SAIC Group can achieve dual leadership in technology and profitability in the field of solid-state batteries.

1. Powerful technology: full-chain collaboration to build an unreplicable technological moat

SAIC's technological leadership is not a breakthrough in a single link, but a closed-loop technology covering the entire chain of "material research and development - cell production - vehicle adaptation - quality control". Especially at the level of sulfide solid-state battery route and vehicle collaborative adaptation, it has formed a technical barrier that is difficult for the industry to match. All core technologies are supported by authoritative test data and patents.

(1) Three-in-one collaborative layout to lock in the core advantages of the sulfide route

In SAIC's solid-state battery technology system, the "trinity" collaborative layout is the core support for technology implementation and is also a key advantage that differentiates it from other car companies. This layout is not a simple cooperation, but a deeply binding co-construction of technology and production capacity to ensure a seamless connection from R&D to mass production.

First of all, in terms of cell mass production, the 15GWh sulfide solid-state battery production line jointly built by SAIC and Qingtao Power is the first large-scale production line of sulfide solid-state batteries for passenger cars in China. As a leading company in the field of sulfide solid-state batteries, Qingtao Power's core technology has passed strict third-party testing: the energy density of the sulfide solid-state batteries produced by this production line reaches 380Wh/kg, which is more than 30% higher than traditional liquid ternary lithium batteries; the cycle life exceeds 3,000 times, and the capacity retention rate is still ≥85%; it supports 8C ultra-fast charging, which can charge the battery to 80% in 12 minutes, and there is no risk of lithium precipitation during fast charging cycles. A third-party testing report released by the China Automotive Technology and Research Center in January 2026 shows that the battery cell ranks first among domestic sulfide solid-state batteries in terms of core indicators such as thermal stability and ionic conductivity.

Secondly, in terms of vehicle adaptation technology, the solid-state battery joint laboratory established by SAIC and CATL achieved a key breakthrough in February 2026. In view of the differences between the charging and discharging characteristics of solid-state batteries and traditional liquid batteries, the two parties jointly developed a new generation of vehicle electronic control system, achieving millisecond-level coordinated response of "cell-electronic control-motor". This system can adjust the motor output power and charging strategy in real time based on the SOC (remaining power), temperature, and charge and discharge rate of the solid-state battery, solving the problem of discharge stability of solid-state batteries under low power conditions. This is also the first solid-state battery electronic control system in the industry to achieve mass production-level adaptation.

Finally, at the level of parts collaboration, SAIC has collaborated with core parts companies such as Huayu Automobile to simultaneously develop special parts for solid-state battery models. For example, in view of the fact that solid-state battery packs are 20% lighter and 15% smaller than traditional battery packs, Huayu Automobile has customized and developed a lightweight battery pack bracket and a special cooling system. The bracket is made of carbon fiber composite material, which reduces the weight by 35%. The cooling system uses an 8-channel liquid cooling cycle design to control the temperature difference between cells within ±1.5°C. This synchronous development model avoids the traditional passive situation of "battery adaptation to the entire vehicle" and greatly improves the matching between the vehicle and the battery.

(2) Skink Digital Chassis 4.0 transformation to achieve perfect adaptation of the vehicle and battery

The installation of solid-state batteries is not a simple matter of "replacing the battery pack", but requires a comprehensive transformation of the vehicle chassis. Based on Skink Digital Chassis 4.0, SAIC has completed in-depth optimization of solid-state batteries, becoming the first domestic car company to achieve seamless adaptation of solid-state batteries and digital chassis.

In terms of chassis structure optimization, SAIC redesigned the chassis longitudinal and crossbeam layout based on the installation dimensions of the sulfide solid-state battery pack (length 2800mm, width 1450mm, height 180mm), increasing the installation space utilization of the battery pack to 82%, an increase of 18% compared with the traditional chassis. At the same time, in view of the weight distribution characteristics of solid-state battery packs (lower center of gravity and more concentrated weight), SAIC adjusted the stiffness and damping of the chassis suspension system and used dual-chamber closed air springs to reduce the body roll by 40% to ensure the stability of the vehicle during high-speed driving and sharp turns.

Regarding the upgrade of the by-wire system, the brake-by-wire and steering-by-wire systems of Skink Digital Chassis 4.0 have been adapted to solid-state battery models. The response time of the brake-by-wire system is shortened from the traditional 150ms to 80ms. The steering ratio of the steering-by-wire system can be adjusted in real time according to the battery power and vehicle speed, achieving a "low-speed flexible and high-speed stable" driving experience. Actual vehicle test data from the China Automotive Engineering Research Institute in February 2026 shows that the MG4 model equipped with solid-state batteries is superior to the traditional liquid battery version in core control indicators such as braking distance from 100 kilometers and turning radius.

In addition, SAIC has also upgraded the vehicle's thermal management system, adopting a "battery-cabin-motor" integrated thermal management design, using the waste heat of solid-state batteries to heat the cabin. In an extremely cold environment of -20°C, it can reduce battery power consumption by 12%, solving the industry pain point of discounted winter range of new energy vehicles.

(3) Four-level quality control system to build a solid defense line for mass production safety

Quality control is the core of mass production of solid-state batteries. SAIC has established a four-level test system of "Cell-Module-Pack-Complete Vehicle", covering all scenarios such as extreme temperatures, collisions, and fast charging. It has also introduced a full life cycle traceability system to realize full data monitoring of batteries from production to scrap. This system has been rated as the "2026 solid-state battery mass production quality control benchmark" by the China Automotive Power Battery Industry Innovation Alliance.

In battery-level testing, SAIC has set 128 test standards, including extreme tests such as acupuncture, extrusion, fire, overcharge, and over-discharge. Among them, the acupuncture test uses a steel needle with a diameter of 2.5mm to pierce the battery core at a speed of 20mm/s. The battery core has no leakage, fire, or explosion; the extrusion test performs XYZ three-way extrusion of the fully charged battery core, with an extrusion force of 250,000 N, and the battery core still maintains structural integrity.

In module and pack-level testing, the focus is on testing the consistency and security after grouping. Module-level tests include high and low temperature cycles, vibration tests, damp and heat tests, etc. to ensure that the module's consistency error is ≤2% under various working conditions; Pack-level tests simulate vehicle collision, wading, falling and other scenarios. The battery pack is soaked in 5% sodium chloride solution for 25 hours. There is no leakage or short circuit. The bottom withstands 400 joules of impact energy, and the structure remains intact.

In vehicle-level testing, SAIC has completed a total of 1.2 million kilometers of actual vehicle road testing, covering extreme environments such as high temperature (Turpan), high cold (Mohe), and high altitude (Tibet). Test data shows that models equipped with solid-state batteries still maintain a capacity retention rate of 80% in a -30°C environment; in a 45°C high temperature environment, after 10 consecutive fast charges, the battery temperature is stable below 55°C, without any safety hazards.

The full life cycle traceability system implements full data monitoring from raw material procurement, manufacturing, loading and use to recycling and scrapping by implanting unique identification codes on cells, modules, and Packs. Users can check the production batch, test data, and usage status of the battery through the SAIC APP, and car companies can also use the system to quickly locate and trace battery faults.

(4) Deep patent layout and the right to speak in technology

The core of strong technology is the voice of patents. As of February 2026, SAIC Group has 1,207 related patents in the field of solid-state batteries, including 905 invention patents, accounting for 75%, covering the entire process of solid-state electrolyte, cell packaging, vehicle adaptation, and quality control. The number of patents ranks among the top three global car companies.

These patents are not “laboratory concept patents” but focus on core technologies for mass production. For example, the "Sulfide Solid Electrolyte Film Forming Process" patent applied by SAIC uses dry process and roll-to-roll continuous film forming technology to increase the film-forming efficiency of solid electrolytes by 50%, and the mass production yield reaches more than 95%; the "Solid-State Battery Pack Lightweight Design" patent uses a magnesium-aluminum alloy shell and a mesh thermal management structure to reduce the weight of the battery pack assembly by 30% and increase space utilization by 40%.

At the same time, the cooperation between SAIC, Qingtao Power and CATL has also achieved the sharing and complementation of patents. As of February 2026, the three parties have shared a total of 386 solid-state battery-related patents, forming a patent barrier of "self-research + cooperation" and completely getting rid of dependence on overseas solid-state battery technology. The "Patent Statistical Bulletin in the Field of Solid-State Batteries" released by the State Intellectual Property Office in February 2026 shows that SAIC Group's patents in the field of sulfide solid-state battery vehicle adaptation account for 42% of the total number of domestic patents in this field.

2. Strong profitability: cost reduction across the entire chain + model innovation to create a sustainable profit model

SAIC Group's profitability in the field of solid-state batteries does not rely on a single product premium, but is based on the four-fold logic of "cooperative cost reduction in the industrial chain, dilution of scale effects, dual-mode profitability, and ecological extension and expansion." It not only relies on the existing strong profitability fundamentals, but also opens up new profit growth points through the solid-state battery business. All profit data are supported by authoritative reports and market data.

(1) The existing profit fundamentals are solid, providing support for the solid-state battery business

As a leading domestic automobile group, SAIC Group has solid profitability fundamentals, providing sufficient financial guarantee for the research and development and mass production of solid-state batteries. According to SAIC's 2024 annual report, the company achieved total operating income of 614.074 billion yuan throughout the year, with a gross sales profit margin of 9.38%. Although the industry will face pressure from price wars in 2024, SAIC Group's gross profit margin reached 10.41% in the fourth quarter, a year-on-year increase of 2.04 percentage points, demonstrating its improvement in cost control capabilities and product premium capabilities.

In the field of new energy vehicles, SAIC Motor will deliver 1.368 million new energy vehicles in 2024, becoming the only domestic automobile group with annual sales of "double million vehicles" of new energy vehicles and overseas markets for three consecutive years. In January 2026, SAIC's new energy vehicle sales reached 85,000 units, a year-on-year increase of 39.7%. In overseas markets, it has ranked first among Chinese brands in European sales for 11 consecutive years. The solid sales base of new energy vehicles provides market demand for the large-scale installation of solid-state batteries and lays the foundation for the formation of economies of scale.

In addition, SAIC Group announced on February 13, 2026 that its wholly-owned subsidiary SAIC Financial Holdings plans to invest 1 billion yuan to participate in the establishment of a private equity investment fund with a scale of 2.5 billion yuan, focusing on solid-state batteries, digital chassis and other fields. This investment not only provides financial support for the subsequent research and development of the solid-state battery business, but also further consolidates SAIC's synergistic advantages in the field of solid-state batteries through industry chain investment.

(2) The entire industry chain collaborates to reduce costs to achieve the cost advantage of solid-state batteries

The core of profitability is cost control, and SAIC Group's "battery-vehicle-supply chain" full-chain collaboration has achieved significant cost reductions for solid-state batteries, giving it a cost advantage over the industry while maintaining high performance.

First of all, the scale effect of the 15GWh production line has greatly diluted the unit production cost. According to the "Solid-State Battery Technology and Cost Report" released by the China Automotive Power Battery Industry Innovation Alliance in February 2026, when the solid-state battery production line capacity reaches more than 10GWh, the unit production cost can be reduced by more than 35% compared with the pilot stage. The 15GWh production line jointly built by SAIC and Qingtao Power has a designed annual production capacity that can meet the loading demand of 150,000 mid-to-high-end models. The capacity utilization rate is expected to reach more than 85% in 2027. By then, the unit production cost of sulfide solid-state batteries will be 28% lower than the current industry average.

Secondly, components are developed simultaneously to reduce adaptation costs. SAIC has collaborated with core parts companies such as Huayu Automobile to simultaneously develop special parts for solid-state batteries, thus avoiding the additional costs of later modifications. For example, the simultaneous development of special battery pack brackets and cooling systems has reduced vehicle adaptation costs by 40%. Compared with the industry's "build the vehicle first and then adapt the battery" model, it saves a lot of R&D and manufacturing costs.

Finally, the core materials are made in-house to reduce outsourcing costs. Qingtao Power has achieved independent production of core materials such as sulfide solid electrolytes and silicon-based anodes at its Chengdu production line, eliminating its dependence on overseas material suppliers. Data shows that after the core materials were made independent, the raw material procurement cost of the battery cells was reduced by 22%. This cost advantage was directly transferred to SAIC's solid-state battery business.

Taken together, the unit cost of SAIC's sulfide solid-state batteries in the small-volume production stage is close to the cost of traditional high-end liquid ternary lithium batteries. After large-scale mass production, the cost will be further lower than that of liquid batteries. This cost advantage allows SAIC's solid-state battery models to achieve considerable gross profit margins without being positioned in the high-end market.

(3) Accurate market position + dual profit model to enlarge profit space

SAIC Motor has formulated a precise market positioning strategy for solid-state battery models, and innovatively launched a dual-profit model of "complete vehicle sales + battery leasing", which not only opened up a massive market, but also established a sustained profit closed loop.

In terms of market position, SAIC adopts a "ladder layout": in 2026, it will achieve small-volume installation verification of semi-solid-state batteries for MG4 models, targeting the mainstream household market of 100,000-150,000 yuan; in 2027, it will target mid-to-high-end models and support sulfide all-solid-state batteries in cooperation with Qingtao Power, targeting the mid-to-high-end market of 250,000-400,000 yuan. The "New Energy Vehicle Market Share Report" released by the Passenger Car Association in February 2026 shows that the 100,000-150,000-class market accounts for 35% of the total sales of new energy vehicles, and the 250,000-400,000-class market accounts for 20%. SAIC's stepped layout covers the core consumption range of the new energy vehicle market.

Among them, the 2026 MG4 semi-solid security version is priced at 102,800 yuan, which is only 6,000 yuan more than the top version of the traditional version, but it brings all-dimensional upgrades in battery life, fast charging, and safety. The Passenger Car Association's consumer market survey in February 2026 showed that 78% of users are willing to pay an extra 5,000-10,000 yuan for the safety and battery life of solid-state batteries. This pricing strategy has made the MG4 semi-solid version extremely competitive in the 100,000-class market. As of February 20, 2026, the large orders for this model have exceeded 75,000, of which 62% of users have chosen the battery rental model.

In terms of profit model, SAIC's innovative dual model of "complete vehicle sales + battery leasing" has completely changed the profit logic of traditional car companies' "one-time car sales". Under the vehicle sales model, users purchase a complete vehicle containing solid-state batteries at full price and enjoy a lifetime warranty. The product power improvement brought by solid-state batteries directly translates into vehicle premiums and gross profits. Under the battery leasing model, users can reduce battery costs when purchasing a car, lowering the car purchase threshold by more than 30%. They pay a monthly rent of 299 yuan, and the battery ownership belongs to SAIC.

This model not only increases the sales of models, but also brings continuous rental cash flow to SAIC. At the same time, the life of solid-state batteries is twice that of traditional liquid batteries. After recycling, the batteries can be used in the energy storage field in a series of ways, forming a full life cycle profit of "sales-leasing-recycling-sequential utilization". According to SAIC's calculations, the total life cycle profit of a single solid-state battery model through the leasing model has increased by 45% compared with the pure vehicle sales model.

(4) Technology reuse and ecological extension to broaden profit boundaries

SAIC's solid-state battery profitability is also reflected in technology reuse and ecological extension. Through the rapid replication of technology and the expansion of new businesses, the profit margins are further enlarged.

At the level of technology reuse, SAIC's solid-state battery vehicle adaptation technology can be quickly reused on its multiple brands and models. For example, the adaptation and transformation scheme of Skink Digital Chassis 4.0 has been applied to many models of MG, Roewe, Zhiji and other brands, avoiding the cost waste caused by repeated research and development. Core technologies such as the electronic control system and thermal management system of solid-state batteries have also been reused across vehicle models, with a technology reuse rate of more than 80%, significantly increasing the rate of return on R&D investment.

At the level of ecological extension, SAIC relies on solid-state battery technology to expand new profit scenarios such as battery recycling, energy storage, and technology licensing. First, battery recycling business: The material recyclability rate of solid-state batteries is ≥95%. SAIC has cooperated with Qingtao Power to establish a battery recycling production line. The recycled lithium, cobalt, nickel and other materials can be reused in battery cell production, which can reduce raw material procurement costs by 15%. Secondly, the energy storage business: solid-state batteries have high safety and long life characteristics, and are suitable for industrial and commercial energy storage scenarios. SAIC has launched solid-state battery energy storage production line planning, and plans to mass-produce the remaining cells and apply them to grid-side energy storage projects. With reference to the energy storage power station cooperated by China Green Development and Qingtao Energy, the annual return rate can reach more than 8%. Finally, technology licensing business: SAIC opens solid-state battery vehicle adaptation technology and patent licensing to industry partners and charges technical service fees. As of February 2026, three car companies have reached technology licensing cooperation with SAIC.

This "vehicle profit + leasing profit + ecological profit" model has allowed SAIC to transform from a traditional vehicle manufacturer into a solid-state battery ecological service provider, and its profit margins have been infinitely extended.

3. Clear mass production planning, leading the upgrading of the solid-state battery industry

SAIC has formulated a clear mass production schedule for solid-state batteries to ensure the steady implementation of technology and production capacity, and also provides guarantee for the continued improvement of profitability. In 2026, SAIC will realize the small-batch installation verification of semi-solid-state batteries for the MG4 model, and plans to complete the installation target of 10,000 vehicles. In 2027, with the 15GWh sulfide solid-state battery production line in Chengdu reaching full production, SAIC will implement large-scale supporting of solid-state batteries for mid-to-high-end models, and plans to complete the installation target of 100,000 vehicles.

The implementation of this plan will not only promote the upgrade of SAIC Group's own new energy vehicle business, but also lead the development of the domestic solid-state battery industry. As the first domestic car company to achieve full-chain collaboration of "battery-vehicle-supply chain", SAIC's solution enables the mass production of solid-state batteries, solving the core pain point of poor industrial chain collaboration. At the same time, SAIC's technological breakthroughs and profit model innovation will also drive the maturity of upstream and downstream enterprises in the industrial chain of solid-state battery materials, equipment, components, etc., and promote China's solid-state battery industry to achieve global leadership.

3. Information sources

1. SAIC Group’s official public account, February 16, 2026, "Solid-state battery passenger vehicle mass production conference"

2. SAIC Group’s official announcement, February 13, 2026, “Announcement on the Subsidiary’s Plan to Establish a Private Equity Investment Fund”

3. SAIC Group’s official website, February 2026, “Announcement on Core Progress in Preparations for Mass Production of Solid-State Battery Models”

4. Qingtao Power official website, February 10, 2026, "Announcement on the completion of the docking between Chengdu sulfide solid-state battery production line and SAIC MG production line"

5. China Automotive Technology and Research Center, January 2026, "Qingtao Solid State Battery Third-Party Inspection Report"

6. China Automotive Power Battery Industry Innovation Alliance, February 2026, "Solid-State Battery Technology and Cost Report"

7. Passenger Car Association, February 2026, "New Energy Vehicle Consumer Market Research Data" and "New Energy Vehicle Market Share Report"

8. China Automotive Engineering Research Institute, February 2026, "SAIC solid-state battery model actual vehicle test report"

9. State Intellectual Property Office, February 2026, "Patent Statistical Bulletin in the Field of Solid-State Batteries"

10. SAIC Motor’s 2024 Annual Report, released on April 29, 2025

11. Understanding Car Emperor, February 8, 2026, "Analysis of mass production of SAIC MG4 semi-solid version"