Argus spoke with Golden Feather Energy's vice-president, Aaron Zhang — whose firm has sold over 5mn semi-solid cells and is planning a third production base — about scaling production, solid-state battery economics and where demand is emerging beyond electric vehicles.
What is the biggest misconception about solid-state batteries?
The biggest misunderstanding is that many products marketed as solid-state batteries are actually semi-solid state. If you look at the market today, almost everything falls into that category. Another misconception is that all-solid state batteries automatically deliver better performance or safety. Solid-state technology is a direction of travel for the industry, but it does not automatically improve every performance metric.
There is often a focus on energy density. Is that the right way to think about solid-state batteries?
Not necessarily. It is very difficult to optimise for high energy density, long cycle life, high power and high safety all at the same time. Different applications require different trade-offs. For some customers, achieving the highest possible energy density is the priority. For others, safety, cycle life or charging performance matters more.
We started with niche applications such as agricultural drones, where high charge rates, high discharge rates and long cycle life are critical. Other products prioritise safety. Different applications require different battery characteristics, so we build products around those requirements rather than optimising everything for energy density.
What impact could wider adoption of solid-state batteries have on upstream materials demand?
For semi-solid state batteries, the impact on raw materials is relatively limited. The biggest changes are likely to be in separators and electrolytes.
For all-solid state batteries, demand could shift more significantly. If the technology matures, there could be increased use of silicon-based anodes and eventually lithium metal. In relative terms, that could reduce the share of conventional graphite in batteries, although it is difficult to estimate precisely how large that effect would be.
Golden Feather has scaled rapidly. How do you view the next stage of expansion?
Today we have around 2GWh of capacity across our facilities and we have sold more than 5mn semi-solid cells. We announced plans for a third production base, although there has been some delay while we reconsider aspects of the project. The current plan is for that facility to add another 10GWh of capacity.
Our target is to begin production at the new base in the fourth quarter of 2028. The first phase would ramp towards around 5GWh and we will keep the remainder flexible as we evaluate demand across different applications.
What are the biggest challenges in scaling production?
For all-solid state batteries, performance remains the main challenge. The second issue is cost. Performance still needs to become more comparable with conventional lithium-ion batteries before large-scale adoption can happen.
For semi-solid batteries, performance is no longer the biggest concern. Yield rates and material supply are more important. As we grow, we also need greater purchasing power with equipment and materials suppliers. Scale helps reduce costs and improve competitiveness.
How much more expensive are solid-state batteries today?
It depends on the product. Our highest-performance batteries can cost three to four times more than conventional lithium-ion batteries. Across the industry, the goal is to reduce costs significantly as production scales. Long term, manufacturers want to bring costs much closer to conventional batteries through both materials development and scale.
Which applications are generating most demand today?
Drones remain our largest business and account for roughly half of revenue. Agricultural drones are particularly important because they operate in very demanding environments and require high power and long cycle life.
Beyond drones, we see growing opportunities in engineering vehicles, such as forklifts, and agricultural machinery. We are also working with battery-swapping operators in markets including Kenya, the Philippines and Malaysia for electric two-wheelers. Those segments could become major contributors to future growth.
Further ahead, we are exploring opportunities in areas such as premium passenger vehicles, heavy-duty trucks and energy storage systems for AI data centres.
How do you view competition?
Our biggest overlap is probably with WeLion. We compete in many of the same areas and they are active internationally as well. Other companies have different strategies and focus on different technologies or market segments.
Competition is increasing, particularly in sectors such as drones. Our approach is to keep expanding into new applications while strengthening our existing positions.
Your customer base is roughly split between China and international markets. Do you expect that to change?
In the long term, we actually like that balance. A roughly 50:50 split provides stability and helps manage geopolitical risk. Even if that percentage remains unchanged, international revenue will become much larger as overall production grows.
How well funded is the company for its next phase of expansion?
We are well prepared. The company began with support linked to Peking University and later brought in industrial investors, including groups connected to the energy sector. More recently, we completed a series C funding round that included provincial and municipal financial institutions as well as major Chinese banks.
For the financing side, we are fully ready for the next stage of expansion. We believe we have the support required to move forward with the third production base.
