Tech startup: I really do make mobile phones!

Chapter 27 Xu Mingyuan's Dilemma

Xu Mingyuan has figured it out: Fengtian's sulfide solid-state batteries are actually not very valuable.

It's simply a matter of building toll booths first and seizing the entry-level patent for sulfide solid-state batteries.

Although Fengtian developed a sulfide solid-state battery in the laboratory as early as 2010, they expect to start small-scale mass production in 2027.

This 17-year timeline clearly shows that Fengtian's approach is not to honestly develop the solid-state battery market, but rather to try and take advantage of existing successes.

By 2025, BTD's sulfide solid-state batteries will have already begun technical verification before mass production, while Fengtian's production plan is still nowhere in sight.

Xu Mingyuan has already attempted to conduct hydrogenation and oxidation studies on more combined metal alloys such as nickel, manganese, copper, iron, chromium vanadium, and niobium.

They are trying to find a completely new cathode material for solid-state batteries, bypassing the patent barriers imposed by Fengtian sulfide.

Although the sulfurized solid-state battery released by Fengtian earlier this year can be manufactured in small batches in the laboratory, its cost is 25 times that of the current mature liquid lithium battery.

It has no practical value whatsoever.

Japanese companies, when conducting technological research and development, like to first secure patents based on the established pathways, then wait for others to research the most difficult parts, allowing them to reap the benefits without lifting a finger.

The same applies to hydrogen energy in later generations. Japan's patents are concentrated on simpler applications, while there has been little investment in core aspects such as hydrogen production, storage, and transportation.

Domestically and in North America, they naturally wouldn't tolerate it and tacitly opted for the battery route.

Of course, the neon battery route also has some scattered layouts, but they are relatively scattered and not as systematic as the hydrogen energy route. Later, it was gradually surpassed by China and North America.

Sulfation itself is the most suitable process for solid-state battery cathode materials; the real challenge lies in developing different cathode and dielectric materials.

Japanese companies did not rush to overcome these difficulties; instead, they were busy seizing easier paths and application patents.

Other countries aren't stupid. They'll tackle the most difficult technical challenges themselves, create successful applications, and then let you reap the benefits.

The reason why later generations of Japan easily developed the wrong technology path stems from this: before the roads were even built, the tollbooths were already in place, and then other countries tacitly chose to build the roads in places without tollbooths.

The official launch of ten pilot cities for new energy vehicles in China this year has sent a positive signal to the power battery market.

Solid-state batteries, with their high energy density and high safety, are undoubtedly the optimal solution for the most stable power batteries.

Even with a recommendation letter from Richard Harding, a leading figure in the field of solid-state batteries, Xu Mingyuan could only get jobs at Bell Labs, so he naturally understood that he could never truly integrate into North America.

Taking advantage of the wave of pilot projects for new energy vehicles in China, which spurred the development of power batteries, he returned to China and partnered with his alumni to establish Yuantu New Energy Technology Company, and began to study the iteration of power batteries.

Even if solid-state battery technology is not mature yet, Yuantu New Energy can start by developing semi-solid-state batteries.

Xu Mingyuan hopes to take advantage of the promotion of new energy vehicles in China and achieve success in his professional field.

What's currently blocking Xu Mingyuan's path is Fengtian's patent on the sulfide solid-state battery process.

If this patent is so easy to circumvent, then when the two major domestic battery manufacturers started researching solid-state batteries in later years, they wouldn't have tacitly avoided the path of sulfide solid-state batteries.

Ningde's later generations followed the oxide improvement route, aiming to transition from semi-solid to sodium-ion solid-state batteries, focusing more on improving their packaging technology in terms of process.

BTD takes a comprehensive approach, encompassing polymers, oxides, and new electrolytes, with a greater emphasis on structural innovation and full-chain coverage in its processes.

Of course, later, when Fengtian's own gasoline car market shrank and its fortunes declined, it wanted BTD to help it manufacture electric cars, and thus used its sulfide battery patent as part of the bargaining chip. Before Chen Mo's rebirth, it was said that BTD's sulfide + oxide electrolyte solid-state battery and Ningde's sodium-ion solid-state battery had entered the pre-mass production technology verification stage.

Xu Mingyuan had previously abandoned the sulfide approach, but he had also tried using different polymers as cathode materials.

Unfortunately, although he discovered some new polymer materials, he did not find suitable cathode materials for developing solid-state or semi-solid-state power batteries.

Anyone who does materials research knows that materials science is a complete mystery.

The difference between a novice and a pro is simply that a novice finds patterns through countless trials and errors, while a pro finds breakthroughs through trial and error within those patterns.

After all, in a materials lab, getting lucky is the inevitable path for most materials scientists.

The expert simply means that wherever the blind cat heads, there will definitely be something, but if it's not the mouse you're looking for, that's another story.

Unfortunately, none of the polymers that Xu Mingyuan and his team found were suitable cathode materials for solid-state batteries.

Now, two partners have withdrawn their investment, the company is facing cash flow difficulties, the laboratory is shut down, and the team is demoralized.

In particular, Xu Mingyuan knew in private that some of the core members of his team were in contact with a new energy company that was in the preparatory stage.

What could he, a tech person, do in the face of such a terrible situation at his company?

Xu Mingyuan had to appease people while simultaneously taking on low-end battery manufacturing business to maintain the company's cash flow, and he had to seal up the laboratory equipment to save costs.

Just before meeting Chen Mo and the other two, the two alumni who were partners had clearly told Xu Mingyuan that they were going to withdraw their investment.

He had another argument with his two partners, and then decided to sell the house through a real estate agent to raise money, thus parting ways with them.

Alright! Now Xu Mingyuan has the final say in the entire Yuantu New Energy project.

To maintain the company's cash flow, Xu Mingyuan was even willing to take on low-end battery OEM business, let alone rent out the sealed battery laboratory.

"Okay! Then it'll be 680 yuan a day!" Xu Mingyuan readily agreed to the rental price offered by Zhao Tiezhu, and then told Chen Mo, "President Chen! You'll still need to bear the material costs yourselves!"

Zhao Tiezhu winked at Chen Mo and gently shook his head, seemingly with another meaning.

Chen Mo didn't immediately understand Zhao Tiezhu's meaning, but he felt it was only right for him to bear the material costs, so he agreed.

“Okay! Mr. Xu, we can bear the material costs incurred in research and development ourselves.”

Now that the deal for renting the lab had been finalized, Chen Mo, being a straightforward science and engineering guy, stopped playing games with Xu Mingyuan and asked directly.

"Mr. Xu! If it's convenient today, we'd like to start debugging the equipment right now. We really need these batteries!"

Xu Mingyuan casually fiddled with the document on gaseous lithium batteries on the conference table.

"If Mr. Chen needs anything further, just contact Engineer Li!"

After saying that, he took out his phone and dialed a number. In less than five minutes, Engineer Li, wearing black-rimmed glasses, stood at the door of the conference room carrying a list of laboratory equipment and materials.

(End of this chapter)