China's SEMCORP, WELION New Energy ink deal for battery electrolyte membrane transaction

Shanghai (Gasgoo)- On January 14, Yunnan Energy New Materials Co., Ltd. (SEMCORP), a Chinese lithium-ion battery separator film supplier, announced that its subsidiary Shanghai SEMCORP had signed a long-term supply agreement with Beijing WELION New Energy Technology Co., Ltd. (WELION New Energy).

Photo credit: SEMCORP

As per the agreement, WELION New Energy will procure 80% of its required materials from Shanghai SEMCORP and its affiliates. Those materials are set to be used as semi-solid battery electrolyte membranes as well as electrolytes and electrolyte membranes applied in solid-state batteries.

Specifically, WELION New Energy is expected to procure no less than 300 million square meters of electrolyte membranes for semi-solid and solid-state batteries and no less than 100 tonnes of solid-state battery electrolytes from Shanghai SEMCORP and its affiliates between 2025 and 2030.

Founded in 2016, WELION New Energy focuses on the R&D, manufacturing, marketing, and sales of solid-state lithium-ion batteries. The company's products are primarily applied in sectors such as new energy vehicles, energy storage, and the low-altitude economy. The company so far has secured partnerships with major industry players, including State Power Investment Corporation (SPIC), NIO, Xiaomi EV, and GAC Group.

Solid-state batteries offer significant advantages over their liquid counterparts. They feature high safety, reduced weight, and a high threshold for thermal runaway. Additionally, solid-state batteries can achieve an energy density of over 500Wh/kg, surpassing the limitations of liquid lithium-ion batteries, which are capped at 350Wh/kg.

In May 2024, it was reported that China might invest approximately 6 billion yuan in supporting the R&D of solid-state batteries, with six companies including CATL, BYD, FAW Group, SAIC Motor, WELION New Energy, and Geely expected to receive government support for basic R&D.