Listing Success | Frost & Sullivan Supports Shenzhen Xingyuan Material Technology Co., Ltd. in Successfully Listing in Hong Kong (6067.HK)

Shenzhen StarSource Material Technology Co., Ltd. (hereinafter referred to as “StarSource Material”) successfully went public on June 23, 2026. The company plans to issue 14,952.5 million H shares, of which 13,457.1 million shares will be offered internationally and 1,495.4 million shares will be offered publicly in Hong Kong. The highest offering price per share is 8.98 Hong Kong dollars, raising approximately 1.34 billion Hong Kong dollars in net funds.

During this listing process in Hong Kong, Frost & Sullivan performed the following key tasks: helping the issuer accurately and objectively understand its position in the target market, using objective market data to identify, support, and highlight the issuer’s competitive advantages, assisting the issuer, investment banks, and other intermediaries in drafting important sections of the prospectus such as overview, competitive advantages and strategy, industry overview, and business sections, and helping the issuer communicate with the Stock Exchange and investors to enable investors to quickly understand the market ecosystem and competitive landscape, as well as assisting the issuer in responding to various questions regarding the industry from the Stock Exchange.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport Big Data (statistical data as of March 31, 2026), over the past 36 months and 12 months, and from January to March 2026, Frost & Sullivan provided listing industry consulting services for 195 (market share: 71%), 101 (market share: 73%), and 30 (market share: 77%) Hong Kong IPO events respectively, ranking first in terms of number of services provided. Frost & Sullivan has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and related organizations.

• The company is a competitive supplier of lithium-ion battery separators, with over 20 years of R&D experience and a strong track record of serving leading global battery manufacturers.

• The company has a fully optimized product portfolio that meets the comprehensive needs of downstream lithium-ion battery customers in various scenarios.

• The company has established a tripartite innovation ecosystem, enabling it to maintain R&D capabilities, produce high-quality research results, and build a solid technical reserve.

• The company is one of the few enterprises in the industry with independent equipment research and design capabilities.

• The company’s production and R&D network form the basis for its services to overseas customers.

• The company has an experienced and forward-looking management team, along with a well-established talent incentive mechanism, promoting sustainable development.

According to Frost & Sullivan report:

• In 2025, the total global battery separator industry volume was approximately 40.3 billion square meters, and the company ranked second in the global battery separator market, with a market share of 11.6%.

• In 2025, the total global Chinese battery separator industry volume was approximately 34.6 billion square meters, and the company ranked second in the Chinese battery separator market, with a market share of 13.5%.

Lithium-ion batteries are rechargeable batteries whose charging and discharging processes are achieved through the movement of lithium ions between the positive and negative electrodes. Compared to rechargeable alkaline batteries, lithium-ion batteries have higher energy density, longer service life, and better safety performance. Based on application scenarios, lithium-ion batteries can be mainly divided into three categories: electric vehicle batteries, energy storage batteries, and consumer electronics batteries, which are used in transportation vehicles, energy storage facilities, consumer electronics, and industrial machines.

In addition to the above core areas, lithium-ion batteries are also being applied more widely in emerging fields such as power tools, drones, robots, and the electrification of the COMMERCIAL AVIATION and maritime industries. As the world moves toward electrification, automation, and lightweight energy solutions, these areas are expected to become important growth drivers for the battery industry. The rapid expansion of lithium-ion batteries is unlocking vast new market potential, providing a solid foundation for the continuous demand growth of the entire battery supply chain, including high-performance battery separators. In increasingly diverse and high-specification applications, high-performance battery separators play a crucial role in ensuring safety, efficiency, and reliability.

The global lithium-ion battery industry volume increased from 576.0 GWh in 2021 to 2,278.9 GWh in 2025, with a compound annual growth rate of 41.0%. By 2030, the global volume is expected to exceed 6,500 GWh, with a compound annual growth rate of 23.6% starting from 2025. China remains the largest market, with the global lithium-ion battery volume increasing from 327.0 GWh in 2021 to 1,716.7 GWh in 2025, with a compound annual growth rate of 51.4%. By 2030, the volume is expected to exceed 4,500 GWh, maintaining a compound annual growth rate of 21.3%, and the global market share will exceed 65%. The volume of lithium-ion batteries in regions outside China is expected to exceed 2,000 GWh by 2030, with a compound annual growth rate of 29.6%, higher than in China, and its global market share will also increase to over 30%.

It is worth noting that due to the continuous penetration of new energy vehicles and the rapid adoption of energy storage, including user-side storage, the market share of lithium-ion batteries in Europe and the United States is expected to increase from 10.2% and 5.6% in 2025 to 13.3% and 6.6% in 2030. To address this trend, leading lithium-ion battery manufacturers are actively expanding production capacity in Europe and the United States, thereby accelerating the expansion and localization of the global lithium-ion battery supply chain, including the battery separator industry.

Battery separators are polymer membranes. As essential components of lithium-ion batteries, separators prevent electrical short circuits and provide pathways for the movement of lithium ions between the positive and negative electrodes, thus having a significant impact on the performance of lithium-ion battery products.

Separators can be divided into dry and wet types. Dry separators are typically made of polypropylene (PP) or polyethylene (PE). Due to their high high-temperature self-sealing point and low thermal shrinkage rate, dry separators have high thermal stability, ensuring better safety performance. Wet separators are made of polyethylene (PE). With thinner thickness, better pore size distribution, and a wider adjustable porosity range, wet separators help the transfer of lithium ions between electrodes, enhancing the energy density of the battery. Coating processes can be applied to both dry and wet separators, significantly improving their thermal stability, puncture resistance, and safety performance. In wet separators, coatings are mainly used to improve high-temperature stability, which is crucial for high-energy-density batteries; while in dry separators, coatings focus on enhancing wetness, mechanical strength, and uniformity to meet the needs of cost-sensitive or high-temperature applications. Generally, about 80% of wet separators require coating, reflecting the high requirements for safety and performance in high-energy-density battery applications; about 20% of dry separators require coating, which aligns with their widespread use in cost-sensitive and medium-performance applications. This distribution highlights the critical role of coatings in wet separators, meeting the requirements for advanced battery performance.

Based on volume, the global battery separator market size increased from 109 billion square meters in 2021 to 403 billion square meters in 2025, with a compound annual growth rate of 38.7%. In 2025, China had the largest volume of battery separators, accounting for approximately 85.9% of the market. Looking ahead, driven by government additional regulations and technological progress, the global battery separator market size based on volume is expected to increase from 403 billion square meters in 2025 to 1,181 billion square meters in 2030, with a compound annual growth rate of 24.0%. Meanwhile, driven by the rapid growth of lithium-ion battery and separator production capacity in Europe and America, as well as the increasing penetration of new energy vehicles in these regions and the high annual growth rate of energy storage devices, regional manufacturers are accelerating local production to enhance supply chain resilience, shorten logistics cycles, reduce transportation costs, and meet the increasingly strict local requirements for quality, sustainability, and traceability. Geopolitical uncertainties and the increasing emphasis on supply chain security further encourage local production. Additionally, closer relationships between material suppliers, battery manufacturers, and downstream users improve efficiency and accelerate product innovation. As leading Chinese separator companies expand overseas to support a global battery supply chain, these factors are expected to significantly increase the share of volume outside China, from 14.1% in 2025 to 31.1% in 2030, with a compound annual growth rate of 45.1%.

Source: Frost & Sullivan Analysis

From 2021 to 2025, the global dry battery separator market size based on volume increased from approximately 2.1 billion square meters to about 8.3 billion square meters, with a compound annual growth rate of 40.5%. In 2025, China accounted for 95.2% of the global volume, maintaining a dominant position in the market. Looking ahead, the global volume is expected to increase from about 8.3 billion square meters in 2025 to 130 billion square meters in 2030, with a compound annual growth rate of 9.4%. As Chinese enterprises accelerate overseas expansion, and other countries’ manufacturers increase production capacity and expand customer bases, the volume of dry separators in regions outside China is expected to rise from 4.8% in 2025 to 13.8% in 2030, with a compound annual growth rate of 35.1%.

Source: Frost & Sullivan Analysis

The global wet battery separator market size based on volume increased from about 88 billion square meters in 2021 to about 320 billion square meters in 2025, with a compound annual growth rate of 38.2%. In 2025, China dominated the market with a share of 83.4%. Looking ahead, the market is expected to expand from 320 billion square meters in 2025 to 1,051 billion square meters in 2030, with a compound annual growth rate of 26.9%. It is worth noting that driven by accelerating international market demand and strategic overseas expansion by Chinese enterprises, the market share outside China is expected to rise from 16.6% in 2025 to 33.2% in 2030, with a compound annual growth rate of 45.8%. With advanced manufacturing technology, strong R&D capabilities, and integrated supply chains, Chinese enterprises are rapidly establishing production bases overseas to effectively meet the growing global battery demand, enhance supply chain resilience, maintain cost competitiveness, and consolidate their leading position in the global wet battery separator market.

Source: Frost & Sullivan Analysis

● Increased Penetration Rate and Performance Requirements of New Energy Vehicles

In 2025, the penetration rates of new energy vehicles in China, Europe, and the United States were 45.3%, 18.1%, and 11.3%, respectively. By 2030, these figures are expected to rise to 68.1%, 26.7%, and 14.1%, respectively. Compared to China, the penetration rates of new energy vehicles in Europe and the United States show significant growth potential and are expected to increase further. Driven by carbon neutrality goals, supportive policies, and automotive manufacturers’ electrification strategies, the adoption of new energy vehicles worldwide has increased significantly, driving rapid growth in the electric vehicle battery industry. As electric vehicle batteries aim for higher energy density, faster charging speeds, and greater safety, the demand for high-performance separators is rising, prompting simultaneous expansion of wet and dry separator technologies. Wet separators, with their superior uniformity and mechanical strength, are becoming the mainstream choice for high-nickel and semi-solid batteries. Meanwhile, dry separators maintain their competitive advantage in mainstream applications due to their thermal stability and cost-effectiveness. With the electric vehicle battery market expected to remain highly growth-oriented in the coming years, the separator industry is expanding production capacity and upgrading manufacturing processes to meet this trend.

● Diversified Energy Storage Applications Drive Demand

The energy storage sector (including grid-level systems, communication base stations, home energy storage, and portable power sources) is becoming a key driver of separator demand. Each application has unique technical specifications; for example, grid energy storage requires long cycle life, while residential and portable systems require high energy density and heat resistance. Separator manufacturers are developing customized solutions for different applications, including functional coating, pore size optimization, and enhanced high-temperature self-sealing properties. Among them, the energy storage industry in Europe and the United States, especially user-side storage, is growing significantly. Based on new installed capacity, the market size of energy storage systems in Europe and the United States is expected to exceed 135 GWh and 200 GWh respectively by 2030, with compound annual growth rates of 35.8% and 31.9%, respectively. This rapid growth drives the demand for lithium-ion batteries, thereby accelerating the expansion of overseas separator production to meet increasing local demands. As global investment in renewable energy and grid stability increases, the energy storage battery industry is rapidly emerging, creating a continuously growing and sustainable demand base for separators in the energy storage sector.

● Increasing Competitiveness of Chinese Suppliers

Chinese separator manufacturers have quickly caught up with international competitors in terms of production scale, technical maturity, and cost efficiency, and in many cases, have surpassed them. Thanks to continuous R&D investment and production expansion, Chinese enterprises have become leaders in the global separator supply. Their competitive pricing and ability to supply high-quality wet and dry separators on a large scale make Chinese enterprises dominant exporters of separators, especially among electric vehicle battery manufacturers in Europe and Southeast Asia. This growing competitiveness has reshaped the global market landscape and strengthened the leading position of Chinese suppliers.

● Innovation Benefits Leading Enterprises with Diverse Strategies

Technological innovation continues to shape the battery separator industry, as seen in material breakthroughs and process improvements, such as high-speed wet production lines and dry low-temperature stretching technologies. The market demand for next-generation separators that are ultra-thin, heat-resistant, and capable of suppressing dendrite formation is rising, triggering a new wave of product development. Leading separator suppliers have integrated into these advanced supply chains and participated in early product planning to ensure long-term value creation. At the same time, intelligent manufacturing, AI quality control, and sustainable development-related R&D are bringing dual innovations in cost structure and environmental footprint. In terms of products, wet and dry manufacturing processes are expected to coexist, and separators will move towards thinner and more functional trends. Rising demand for coated separators makes differentiated coating formulations a major competitive advantage for enterprises with diverse technologies. Looking ahead, industry concentration may increase, further benefiting leading enterprises with scale, innovation capabilities, and strong customer networks.

In 2025, the total global battery separator industry volume was approximately 403 billion square meters. The top five enterprises accounted for approximately 67.2% of the global battery separator market volume. In 2025, the company ranked second in the global battery separator market, with a market share of 11.6%. In 2025, the total global Chinese battery separator volume was approximately 346 billion square meters. The top five enterprises accounted for approximately 78.1% of the Chinese battery separator market volume. In 2025, the company’s market share in the Chinese battery separator market was approximately 13.5%, ranking second. To further strengthen its competitive position in both the global and Chinese markets, leading Chinese battery separator enterprises are actively building overseas production capacity.

Source: Frost & Sullivan Analysis

In 2025, the total global dry battery separator volume was approximately 83 billion square meters. The top five enterprises accounted for approximately 76.8% of the global dry battery separator volume. In 2025, the company ranked first in the global dry battery separator market, with a share of 21.5%. In 2025, the global wet battery separator volume was approximately 320 billion square meters. The top five enterprises accounted for approximately 74.7% of the global wet battery separator volume. In 2025, the company’s market share in the global wet battery separator market was approximately 9.0%, ranking fourth.

Source: Frost & Sullivan Analysis

In 2025, the total global Chinese dry battery separator volume was approximately 79 billion square meters. The top five enterprises accounted for approximately 80.8% of the Chinese dry battery separator volume. In 2025, the company’s market share in the Chinese dry battery separator market was approximately 22.6%, ranking first. In 2025, the total global Chinese wet battery separator volume was approximately 267 billion square meters. The top five enterprises accounted for approximately 89.6% of the global wet battery separator volume. In 2025, the company’s market share in the global wet battery separator market was approximately 10.8%, ranking fourth.

Source: Frost & Sullivan Analysis