Beijing WeLion New Energy Technology, a Chinese maker of long-range electric vehicle batteries, including one capable of going 1,000 kilometers (620 miles) on a charge, plans to go public as soon as 2025 as it banks on automakers embracing next-generation cells in the race to overcome range anxiety.
The company, which supplies the long-range semi-solid state cell to Chinese EV maker Nio, is targeting a 20-fold surge in revenue to 10 billion yuan ($1.4 billion) by 2025 to fuel its aspirations, founder Li Hong said in a recent interview.
The company, better known as WeLion, was valued at 15.7 billion yuan in its most recent funding round, said Li, who also holds the title of chief scientist.
Solid-state batteries are a potential game changer for the EV industry because they enable high-voltage, high-capacity cathodes that provide a substantial boost to battery capacity and performance.
While no one has succeeded yet in commercializing solid-state batteries, WeLion’s semi-solid state cell is being used in Nio’s new ES6 SUV unveiled in May, making it one of few next-generation battery makers in the world to start mass production.
WeLion’s battery for Nio has a 150-kilowatt-hour pack, and the 1,000-kilometer range compares favorably with the Lucid Air Dream Edition R (840 kilometers) and Tesla’s Model S (640 kilometers).
The cell has an energy density of 360 watt-hours per kilogram, Li said. That is higher than the estimated 300 watt-hours per kilogram of Tesla’s 4680 battery, according to Shinyoung Securities in Seoul.
“WeLion is not the first company to successfully deliver commercialized semi-solid state batteries, but its 360 watt-hours per kilogram reached the highest energy density among current commercialized EV battery cells,” said Jiayan Shi, an analyst at BloombergNEF. “Nio has a standard size for battery packs, but WeLion’s cell managed to put more energy into the same volume, and that it is a success.”
The technology is attracting interest from a wide array of automakers, including Volkswagen Group, Ford Motor, Mercedes-Benz and Geely, as well as Chinese consumer-electronics maker Xiaomi, Li said.
To meet its ambitious sales goal, WeLion is building four more battery production facilities in China to boost its annual capacity to 30 gigawatt-hours by 2025, from 6 GWh now. In addition to going into EVs, the batteries can be used for energy storage systems and drones.
Li, a professor at the Chinese Academy of Sciences, also co-founded low-cost sodium-battery maker HiNa Battery Technology. He says a hybrid semi-solid state battery that adds liquid to solid electrolyte is a practical way to improve battery performance and realize commercialization.
“When we increase energy density, we have a serious concern on safety, but a hybrid one can get a balanced performance,” he said.
It’s unlikely WeLion’s battery can replace most lithium ion batteries in the near future, given the high cost of manufacturing solid-state cells, said James Lee, an analyst at KB Securities in Seoul.
“A key is whether customers would be willing to pay for the high price for EVs with solid-state batteries, just because of the long range,” Lee said. “Companies like WeLion will have to target luxury cars only. It’s not easy for them to lower prices.”
Even Li concedes that the company likely cannot erode the market share of lithium ion battery giants like Contemporary Amperex Technology Co. Ltd., which specializes in low-cost iron-based batteries for cheaper EVs.
WeLion will probably have less than 1 percent market share by 2025, he said.