Gasgoo Munich- On May 27, at the 2026 Automotive New Materials Conference, Hou Fushen, vice president and secretary-general of the China Society of Automotive Engineers, revealed a striking disparity: manufacturing a traditional internal combustion engine vehicle requires just over 200 types of materials, whereas a smart new energy vehicle demands more than 400.
The jump from 200 to 400 is more than a statistical doubling; it reflects a profound reconstruction of the material landscape as the industry shifts from "mechanical propulsion" to "smart electric propulsion."
According to the "Technology Roadmap for Energy Saving and New Energy Vehicles 3.0," the penetration rate of new energy vehicles in China's passenger car market is set to exceed 70% by 2030. That shift has already ignited an industrial upheaval centered on automotive materials.
What Extra Materials Does a Smart EV Actually Need?
The most intuitive way to grasp this doubling of material categories is to compare smart EVs directly with their internal combustion counterparts.
The core of a traditional car lies in its engine and transmission, surrounded by stable material categories like cast iron cylinder blocks, aluminum alloy pistons, and steel crankshafts. Smart EVs have removed that "heart," replacing it with battery packs, drive motors, and electronic control systems, while adding features like LiDAR, large central screens, and 800V high-voltage platforms. Every new function introduces a fresh chain of material demands.
Consider the power battery. Traditional cars lack battery packs, yet smart EVs routinely carry batteries ranging from 60 to 100 kWh, with incredibly complex internal materials. The battery's "four major components"—cathode, anode, separator, and electrolyte—each represent a distinct material supply chain. Cathodes have evolved from lithium iron phosphate to ternary materials and high-manganese iron lithium, with a future shift toward solid-state electrolytes on the horizon. Anodes are moving from graphite to silicon-carbon composites to pursue higher energy density, while separators now feature alumina ceramic coatings on polymer films to improve heat resistance. Auxiliary materials like copper foil, aluminum foil, and carbon nanotube conductive agents are entirely new faces in the automotive world.
The shift toward intelligence is equally transformative. An L2 driver-assist vehicle typically carries multiple millimeter-wave radars and cameras, while premium models add LiDAR. Millimeter-wave radar housings require thermoplastic wave-absorbing materials—often PBT or PPS bases doped with magnetic loss agents—to ensure signal penetration without electromagnetic interference. LiDAR lenses demand infrared-grade optical materials with extreme requirements for light transmittance and weather resistance. Meanwhile, large interior screens and HUDs have sparked demand for optical films and flexible cover materials.
Image source: Xiaomi EV
Lightweighting and thermal management present fresh material challenges. A model equipped with a 100 kWh battery carries over half a ton just in cells, forcing automakers to shed weight elsewhere. Aluminum profiles are increasingly replacing steel in body-in-white construction, magnesium alloys are appearing in instrument panel skeletons, and carbon fiber composites are trickling down from supercars to high-end passenger vehicles. High-power fast charging generates significant heat in battery packs, making novel thermal management materials like thermal conductive gels, graphene heat films, and aerogel insulation pads standard equipment.
As Penetration Heads Toward 70%, How Large Will These Markets Grow?
Introducing new materials is only the first half of the story. The second half unfolds as these materials trickle down from premium models to the mass market, which sells in the tens of millions. How will demand evolve then?
The "Roadmap 3.0" projects that by 2030, with new energy penetration exceeding 70%, more than 15 million new cars annually will be electrified. Power battery installation capacity is expected to surpass 600 GWh by 2025 and reach 1,500 GWh by 2030. Cathode materials alone will require 3 to 3.75 million tons, directly driving demand for minerals and chemical feedstocks like lithium, nickel, cobalt, manganese, and phosphorus. If solid-state batteries achieve mass production between 2028 and 2030, materials currently still in the lab—such as lithium sulfide and sulfide electrolytes—could blossom into 10-billion-yuan markets.
Silicon carbide (SiC) offers another typical example. SiC power modules are already widely used in mainstream 800V platforms, boosting overall efficiency by 3% to 5% compared to silicon-based IGBTs. However, high substrate costs have limited their use in economy models. As 800V platforms move into mainstream price segments, shipments are set to multiply several times over. The resulting economies of scale will drive down costs, creating a positive feedback loop. Furthermore, the proliferation of L2 driver assistance and the commercialization of L3 autonomous driving will provide sustained growth for LiDAR optical materials, millimeter-wave radar absorbers, and chip packaging substrates.
Image source: VAMA
Lightweighting materials are also poised for a surge in volume. Currently, carbon fiber is largely limited to models priced above 500,000 yuan, while aluminum alloys are mostly found in the 200,000 to 300,000 yuan range; mainstream vehicles costing 100,000 to 200,000 yuan still rely primarily on steel. However, with battery energy density nearing its physical limits, lightweighting has become the only viable path to extending range. Since new energy vehicles are 200 to 300 kilograms heavier than their gasoline counterparts due to battery weight, automakers must offset this through body lightweighting. The tipping point for aluminum and magnesium alloys to penetrate the mainstream segment is fast approaching.
The doubling of material categories and the rise in penetration rates are reshaping the upstream supply chain. The traditional system, dominated by steel, rubber, and glass, is shifting toward a new landscape that places equal weight on battery materials, semiconductor materials, and high-performance polymer companies. Yet critical choke points remain in areas like SiC substrates, high-end separators, and solid-state electrolytes, meaning the push for localization and substitution still has a long way to go.
The shift from 200 to 400 material types is far from over. When new energy penetration exceeds 70% in 2030, the automotive new materials industry will enter a true boom phase. Securing an early position will determine where material companies stand over the next decade. Meanwhile, breakthroughs in material innovation will directly dictate whether smart electric vehicles can achieve comprehensive superiority in performance, safety, and cost.
