New mandatory safety requirements for electric vehicle power batteries, considered the strictest to date, have officially come into force. The updated national standard, which took effect on July 1, 2026, introduces a compulsory stipulation that batteries must not catch fire or explode following thermal runaway, while also raising the testing thresholds for extreme conditions such as nail penetration, crush, drop, and overcharge/over-discharge. This represents more than a mere technical update; it signifies a pivotal shift for China's power battery industry from a phase of scale expansion to one focused on redefining safety baselines. The elevation of standards reflects the collective demand from the new energy vehicle sector, now in a more mature phase, for high safety, consistency, and manufacturing reliability. Low-end capacity, crude manufacturing, and competition based solely on cost will be rapidly phased out. Only enterprises possessing comprehensive capabilities in materials, processes, equipment, testing, and data-driven closed-loop systems will have the opportunity to take the initiative in this new standards cycle.
At this critical juncture, a documentary series jointly produced by the Ministry of Industry and Information Technology and Xinhua News Agency has been released. The focus is not on broad narratives but on an in-depth look at the operations of ZENERGY (03677), an HK-listed company, at its national-level green factory in Changshu, Suzhou. The documentary captures the entire production process of an aerospace-grade battery, from material synthesis and precision coating to AI-powered quality inspection.
Why ZENERGY Was Chosen as an Aerospace-Grade Safety Model
The documentary highlights a key distinction. On one hand, the new national standard sets a higher safety baseline for automotive-grade power batteries. On the other, aerospace power batteries face far more extreme scenarios, including high-altitude operation, complex temperature variations, high-frequency vibration, and rapid charge/discharge cycles, demanding failure probability, stability, and consistency levels significantly exceeding those of standard automotive batteries. For battery manufacturers, the ability to apply aerospace-grade safety concepts and manufacturing systems to automotive products is becoming a critical competitive differentiator.
ZENERGY's selection for this feature was not coincidental. Public information indicates the company is the first in China's power battery sector to hold dual certifications: the AS9100D Aerospace Quality Management System certification and the Civil Aviation Administration of China's airworthiness certification. This signifies that its R&D, production, testing, and quality management systems have already been extended to meet the stringent standards of the aerospace industry. The national documentary's factory visit serves as an authoritative presentation and endorsement of this high-safety manufacturing model ahead of the new standard's implementation.
From Compliance to Aerospace-Grade Reliability
If the new standard defines the safety baseline for power batteries in the new cycle, then ZENERGY's emphasis on aerospace-grade manufacturing pursues a higher level of reliability and redundancy. The company does not passively adapt to standards post-implementation. Instead, it proactively embeds high-safety requirements throughout the entire process, from material selection and cell design to process control, in-line inspection, and data traceability.
In the core coating process, the aluminum foil used for the battery's positive electrode current collector is only 10 to 12 microns thick—less than one-tenth the diameter of a human hair—with tolerances controlled within approximately 2-3 microns. This micron-level precision is supported by the company's self-developed AI edge computing online monitoring system, which enables real-time monitoring, intelligent feedback, and closed-loop control of key processes. The smart factory is equipped with over 8,000 core process control points, incorporates non-destructive testing technologies like industrial CT and X-Ray, and integrates AI deep-learning visual inspection into flexible production lines.
Each finished battery cell has a unique digital identity QR code. The production process for a single cell generates over 30 megabytes of data, covering information from raw material traceability and process parameters to quality inspection and carbon footprint tracking, enabling full-chain traceability from production to application. Addressing the critical thermal safety focus of the new standard, ZENERGY has not only passed all required tests but has also introduced aerospace-level safety concepts into its automotive-grade batteries. The target failure probability for its automotive cells is moving towards PPB-level (parts per billion) reliability, providing users with a wider safety margin. In essence, while the new standard sets a mandatory threshold, ZENERGY demonstrates the capability to climb even higher after clearing it.
Low-Altitude Economy Opens New Avenues
The importance of aerospace-grade capability extends beyond meeting the new standard's safety demands; it is also crucial as the low-altitude economy opens new growth scenarios for power batteries. In 2024, "low-altitude economy" was formally included in the government work report, elevating it to a national strategic industry. Applications like eVTOLs, electric fixed-wing aircraft, and drone logistics are accelerating their transition from concept validation to commercial deployment.
Aerospace power batteries are not a simple upgrade from automotive ones. Aircraft impose more complex constraints on power systems regarding safety, stability, energy density, rate performance, and fast-charging capability, requiring cell failure probabilities to advance from the automotive PPM (parts per million) level to the aerospace PPB (parts per billion) level. Companies capable of stable delivery in this field have essentially validated their technology and manufacturing systems in a more demanding application scenario.
In August 2025, the aerospace power battery system exclusively supplied by ZENERGY was certified on China's first two-seat electric fixed-wing aircraft, the RX1E, with the first batch of mass-produced units delivered, filling an industrial gap in domestically produced electric aviation power systems. The company is now deeply collaborating with industry players like the Liaoning General Aviation Academy and Zero Gravity Aircraft Industries, forming a closed-loop iterative system encompassing "technology validation – small-batch trial production – airworthiness certification." The depth of these partnerships underscores market recognition of its high-end manufacturing capabilities.
ZENERGY continues to strengthen its ties with mainstream automakers such as Leapmotor, GAC Toyota, SAIC-GM, and FAW Hongqi, integrating its aerospace-grade safety capabilities into mass-produced automotive scenarios. For instance, for the GAC Toyota bZ7, the company combined its aerospace battery safety standards with Toyota's stringent quality system. The supplied cells successfully passed a full-charge center-cut test: after being completely cut through the center while fully charged, the cells showed no fire or explosion after 24 hours. This downward application of aerospace technology has allowed ZENERGY to establish a clear, differentiated safety profile in the new standards cycle. It also deepens core customer relationships through tangible product safety, further solidifying order stability.
Financial Performance and Capacity Expansion
Ultimately, technological barriers must translate into business results. In 2025, ZENERGY achieved revenue of RMB 8.101 billion, a year-on-year increase of 58%. Net profit attributable to shareholders reached RMB 809 million, surging 788% year-on-year, marking a transition from periodic losses to sustained profitability. Profitability improved concurrently, with overall gross margin stabilizing at 18.4% and net profit margin exceeding 10%. The period expense ratio decreased from 14.5% in 2021 to 6.33%, indicating the continued realization of scale effects and lean management benefits.
A research report highlights that on the capacity side, the company has established a foundation of 35.5 GWh. It is advancing the construction of new capacities for 15 GWh of power batteries and 20 GWh of energy storage batteries, with total capacity expected to exceed 70 GWh upon full completion by the end of 2026. According to the documentary and company disclosures, over the next two years, the company will add 85 GWh of high-quality capacity through key projects like the Galaxy Base, with a long-term total planned capacity reaching 120 GWh. This capacity will cover "land, sea, and air" applications including power batteries, energy storage batteries, aerospace batteries, and marine batteries.
The energy storage business is emerging as a second growth curve. A RMB 10 billion project for 50 GWh of next-generation large-capacity, long-duration energy storage intelligent manufacturing has been signed and landed in the Changshu High-tech Zone. It focuses on the R&D and mass production of ultra-large 588Ah energy storage cells, targeting the high-growth long-duration energy storage sector. The convergence of aerospace battery technology, AI data center backup batteries, and marine batteries further expands ZENERGY's potential to evolve from a single power battery supplier into a full-scenario energy solutions provider.
Conclusion
As the industry's strictest battery standard takes effect, discussions surrounding safety baselines, manufacturing capabilities, and industry consolidation are intensifying. The joint factory visit by the Ministry of Industry and Information Technology and Xinhua News Agency to ZENERGY carries clear industrial significance at this time. China's new energy industry has moved beyond an era of crude quantitative expansion into a phase of precise qualitative advancement. The new standard will accelerate industry consolidation, directing resources towards enterprises that genuinely master core safety technologies, possess high-consistency manufacturing capabilities, and have validated their systems across diverse scenarios. Positioned at the intersection of four major sectors—power batteries, energy storage, aerospace batteries, and marine batteries—ZENERGY, with its core technology system enabling "land, sea, and air" applications, is emerging as a notable high-end battery model in the new standards era.
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