Xiaopeng Unveils Humanoid Robot IRON at Shanghai Auto Show, Aiming for Mass Production of Power Equipment and Renewable Energy by 2026

Xiaopeng’s humanoid robot IRON made its debut at the Shanghai Auto Show, with plans to mass-produce electric equipment and new energy technologies by 2026.

On April 27, 2025, a report from Cinda Securities highlighted the potential improvements in the power battery sector, indicating a possible recovery in profitability. Key points from the report include:

• The lithium battery sector has undergone a significant and prolonged correction.
• A temporary oversupply of lithium batteries is expected to reach an inflection point.
• A decline in lithium carbonate prices could lead to lower battery costs and retail prices, stimulating downstream demand.
• The advancement of 5C fast charging technology is expected to alleviate range anxiety for new energy vehicles, while new technologies such as composite electrolytes are on the brink of mass production, suggesting an increase in the penetration rate of new energy vehicles.

The report further emphasizes the importance of the rapidly growing charging station industry and related companies such as Tonghe Technology, Shenghong Co., and Wolong Nuclear Materials. It also highlights the potential of manganese iron phosphate and composite electrolytes moving from development to production.

Recommended companies in the sector include Ningde Times, Yiwei Lithium Energy, Hunan Youneng, Dangsheng Technology, Changyuan Lithium Tech, Tianci Materials, Keda Lithium, BYD, Xingyuan Materials, Zhongwei Co., Enjie Co., Defang Nano, Xinde New Materials, Tiannai Technology, Shanshan Co., and Zhongke Electric.

Power Equipment and Energy Storage: This year is projected to be a significant year for grid investment, presenting favorable investment opportunities in the sector. The grid is gradually becoming a bottleneck for new energy development, indicating the start of a major growth cycle globally.

• The demand for electricity from emerging industries like AI is expected to increase, which will boost the demand for power equipment.
• The rapid development of new energy is placing pressure on the grid, necessitating support for domestic and international grid infrastructure, and accelerating the need for upgrades.
• Investment demands for global grid infrastructure are improving.

Companies to watch in this area include Siyuan Electric, Haixing Power, Jinpan Technology, Changgao Electric, Kelin Electric, Weisheng Holdings, Sifang Co., XJ Electric, Pinggao Electric, and Guodian Nanjing Automation.

In terms of energy storage, it plays a crucial role in the power system, with expectations for continued growth in 2025. Key points are:

• For large-scale energy storage, improvements in electricity market construction and auxiliary service markets are anticipated, which will enhance business models and promote healthy development.
• In the commercial and industrial energy storage sector, virtual power plants are set to become a primary focus in smart grid development, creating new revenue models that will increase awareness and investment opportunities.
• For household storage, as inventory levels decrease and summer demand rises, the sector is likely to see a rebound.

Investment recommendations for large-scale storage include integrators such as Nanjing Electric, Kehua Data, Aotian Power and Nandu Power; storage inverter companies like Shenghong Co. and Sungrow Power; and battery manufacturers including Ningde Times, Yiwei Lithium Energy, Penghui Energy, BYD, Tianneng Co., and Guoxuan High-Tech. For commercial and industrial storage, consider companies like Anke Rui, Suwen Electric Power, Xinneng Technology, Kelin Electric, Jinrong Tianyu, and Nanjing Energy. For household storage, companies to follow include Kstar, Pylon Technologies, GoodWe, and Jinlang Technology.

Photovoltaics: European demand remains strong, and inventory pressures are expected to ease. Domestic demand for ground-mounted power stations is robust, while emerging markets show promising growth. Lower prices across the industry are likely to further stimulate global photovoltaic market demand, facilitating faster installation.

In terms of new technologies, the large-scale production of TOPCON technology is underway, and the industrialization of ABC and HJT technologies is accelerating, injecting new momentum into the development of renewable energy. Key companies to watch include Meichang Co., Flat Glass Group, Juhe Materials, Trina Solar, and YN Energy. Other companies worth considering include Tongwei Co., Longi Green Energy, Jinko Solar, JA Solar, Aiko Solar, Foster, Junda Co., Yubang New Materials, Jinka Weichuang, Jinbo Co. (covered by Cinda Securities), Haili New Materials, TCL Zhonghuan, Oujing Technology, Heimai Co., and Deye Co.

Industrial Control, Humanoid Robots, and Low-altitude Economy: In the field of industrial control, a large-scale equipment update is anticipated, signaling the approach of a new industrial control cycle. In March 2025, the PMI was recorded at 50.5%, showing an increase compared to February 2025, while inventories in large industrial enterprises were 4.2% lower year-on-year. This suggests that companies are accelerating inventory reduction, and the manufacturing sector is poised for recovery, potentially shifting from destocking to restocking.

Key recommendations include Huichuan Technology and Xusheng Group (covered by Cinda Securities), with additional companies to keep an eye on such as Liangxin Co., Xinjie Electric, and Weichuang Electric.

Regarding humanoid robots, the trend towards automation is undeniable, with factory scenarios likely to be the first to adopt these technologies. At the Shanghai Auto Show on April 23, 2025, Xiaopeng Motors showcased its robot IRON, which interacted with the audience by waving and giving thumbs up. The humanoid robot is currently in the factory training phase, with a goal of achieving large-scale industrial production by 2026. The rapid development of domestic humanoid robots signals a focus on optimizing control mechanisms and lightweight designs.

Recommended companies in this sector include Huichuan Technology and Xusheng Group, with attention also on Mingzhi Electric, Sanhua Intelligent Control, Lvdexie, Keli Sensor, Donghua Testing, Dingzhi Technology, Hengli Hydraulic, Wuzhou New Spring, and Changsheng Bearing.

In the low-altitude economy, intensified policy support is accelerating the implementation of eVTOL technologies. On February 14, 2025, the China Low Altitude Economy Alliance convened to discuss the “National Low Altitude Traffic One Network” project, which aims to standardize the command platform for low-altitude traffic networks and establish ground service facilities across the country.

Companies to consider include Ningde Times and Xusheng Group (covered by Cinda Securities), along with Wanfu Aowei, Huashu Group, Blue Ocean Huating, Yingboer, Wolong Electric Drive, Dangsheng Technology, and Funeng Technology.

Risk Factors: Risks include potential lower-than-expected downstream demand, changes in technology pathways, fluctuations in raw material prices, intensified market competition, and international trade risks.