Automotive new materials double, who is the next billion-dollar track?

On May 27, at the 2026 Automotive New Materials Conference, Hou Fushen, Vice Chairman and Secretary-General of the China Society of Automotive Engineers, disclosed a set of data: the manufacturing of a traditional fuel vehicle requires more than 200 types of materials, while the number of material categories needed for intelligent new energy vehicles has increased to more than 400.

From 200 to 400, it is not merely a doubling of numbers, but also a reflection of the profound restructuring of material systems in the automotive industry's shift from "mechanical drive" to "intelligent electric drive."

According to the "Technology Roadmap 3.0 for Energy-Saving and New Energy Vehicles," the penetration rate of new energy passenger vehicles in China is expected to exceed 70% by 2030, marking the beginning of an industrial transformation centered on automotive new materials.

What additional materials does a smart electric vehicle actually have?

The most intuitive way to understand the doubling of material categories is to compare smart electric vehicles with traditional fuel-powered vehicles.

The core of a fuel-powered vehicle is its engine and transmission, around which materials such as cast-iron cylinder blocks, aluminum alloy pistons, and steel crankshafts are used, with categories remaining stable. Smart electric vehicles have eliminated the “heart” and replaced it with battery packs, drive motors, and electronic control systems, while also adding configurations such as LiDAR, central control screens, and 800V high-voltage platforms. Each new function adds an entirely new chain of material demands.

Take power batteries as an example. Fuel-powered vehicles do not have battery packs, but smart electric vehicles are often equipped with 60 to 100 kWh batteries, whose internal materials are extremely complex. The “four key components” of a battery—the cathode, anode, separator, and electrolyte—each represent an independent materials industry chain. Cathodes have evolved from lithium iron phosphate to ternary materials and lithium manganese iron phosphate, and will move toward solid-state electrolytes in the future; anodes are shifting from graphite to silicon-carbon composites in pursuit of higher energy density; separators add alumina ceramic coating layers to polymer films to improve heat resistance. Auxiliary materials such as battery copper foil, aluminum foil, and carbon nanotube conductive agents are all components never seen in fuel-powered vehicles.

The changes brought about by intelligence are also significant. An L2-level assisted driving vehicle typically is equipped with multiple millimeter-wave radars and cameras, while high-end models also feature lidar. The housing of the millimeter-wave radar must use thermoplastic absorbing materials, with PBT or PPS as the base material mixed with magnetic loss-absorbing agents, ensuring signal penetration while avoiding electromagnetic interference; the lenses of the lidar require infrared-grade optical materials with very high demands for light transmittance and weather resistance. The large screens and HUD (heads-up display) in the vehicle have also created a demand for optical films and flexible cover materials.

Image source: Xiaomi Auto

The lightweighting of vehicles and thermal management present new challenges for materials. Models equipped with a 100 kWh battery have battery packs that weigh over half a ton, prompting automakers to "reduce weight" in other areas—aluminum alloy profiles are increasingly replacing steel in the body structure, magnesium alloys are appearing in dashboard skeletons, and carbon fiber composites are gradually being used in high-end passenger vehicles, transitioning from supercars. High-power fast charging generates significant heat during battery pack charging, leading to the standardization of new thermal management materials such as thermal conductive gels, graphene thermal conductive films, and aerogel insulation pads.

As the penetration rate races toward 70%, how large a market will these materials see?

The introduction of new materials is only the first half; the second half is: when these materials trickle down from high-end models to the mainstream market at a scale of tens of millions of vehicles, how will demand change?

The Roadmap 3.0 projects that the penetration rate of new energy vehicles will exceed 70% by 2030, with more than 15 million new vehicles sold annually being NEVs. By 2025, installed power battery capacity has already surpassed 600 GWh, and is expected to reach 1,500 GWh by 2030. Cathode materials alone will require 3 to 3.75 million tons, directly driving demand for minerals and chemical raw materials such as lithium, nickel, cobalt, manganese, and phosphorus. Once solid-state batteries achieve large-scale mass production between 2028 and 2030, materials still in the laboratory stage today—such as lithium sulfide and sulfide electrolytes—will grow into a market worth tens of billions.

Silicon carbide is another typical example. Silicon carbide power modules have been widely used in mainstream 800V platforms, offering a comprehensive efficiency improvement of 3% to 5% compared to silicon-based IGBTs. However, the high substrate cost still limits their use in economical models. As the 800V platform penetrates mainstream price points, shipment volumes are expected to increase several times, and the scale effect will in turn drive down costs, creating a positive feedback loop. The popularization of L2 assisted driving and the commercialization of L3 autonomous driving will also provide continuous incremental demand for optical materials in LiDAR, absorbing materials for millimeter-wave radar, and chip packaging substrates.

Image source: VAMA

Lightweight materials are likewise facing a scale-up opportunity. At present, carbon fiber is mainly limited to vehicles priced above RMB 500,000, while aluminum alloys are mostly used in models priced between RMB 200,000 and RMB 300,000; mainstream models in the RMB 100,000 to RMB 200,000 range still rely primarily on steel. However, as battery energy density has approached its physical limits, lightweighting has become the only viable path to extending driving range. Because new energy vehicles are 200 to 300 kilograms heavier than internal combustion engine vehicles due to the added weight of batteries, vehicle body lightweighting is necessary to offset this increase. The inflection point for aluminum and magnesium alloys to penetrate mainstream models is fast approaching.

The doubling of material categories and the increase in penetration rates are reshaping the upstream supply chain. The traditional system, primarily based on steel, rubber, and glass, is transitioning to a new pattern that equally emphasizes battery materials, semiconductor materials, and high-performance polymer companies. Key areas such as silicon carbide substrates, high-end separators, and solid electrolytes still face "bottleneck" challenges, making domestic substitution a long and arduous journey.

From 200 types to 400 types, the upheaval in automotive materials is far from over. When the penetration rate of new energy vehicles surpasses 70% by 2030, the automotive new materials industry will a true explosion period. The ability to position oneself in advance will determine the future standing of material companies over the next decade; breakthroughs in materials innovation will also directly determine whether smart electric vehicles can comprehensively surpass in performance, safety, and cost.