- Billionaire expands portfolio into solid-state electrolyte supply chain for first time
- Move adds energy materials to upstream-focused investment strategy
Chinese billionaire and Nongfu Spring founder Zhong Shanshan has made his first known investment in new energy materials, backing a Zhejiang-based solid-state battery startup through a private fund structure, according to the China Entrepreneur magazine.
In May 2026, a private equity fund controlled through Zhong’s holding company Yangshengtang led the Series A round of Zhejiang Zhibang Lithium Battery New Material Co., a startup founded in March 2024 that develops solid-state electrolytes.
The Kunshan Gewu Zhizhi Phase I Venture Capital Fund executed the investment and now holds about 10% of the company.
Yangshengtang provides the fund’s core capital. It contributed about 500 million yuan ($73.76 million) and holds roughly 81% of the vehicle. Zhong controls Yangshengtang. Through this structure, he holds an indirect stake of about 10% in Zhibang Lithium Battery.
First move
The deal marks Zhong’s first move into EV battery materials. It also extends his strategy of targeting upstream industrial sectors rather than consumer-facing businesses.
Zhong, 71, ranks as China’s second-richest person with a fortune of 515 billion yuan ($71.5 billion), behind ByteDance founder Zhang Yiming at 550 billion yuan, according to the 2026 Hurun Global Rich List.
A Hangzhou native, he also remains China’s wealthiest figure in consumer goods and Zhejiang’s richest individual.
Zhibang Lithium Battery is based in Quzhou, Zhejiang province. It develops solid-state electrolytes for next-generation batteries. The company pursues three technical routes: oxide, polymer and sulfide systems.
Chief technical officer Xu Xiaoxiong previously worked at Ganfeng Lithium Group (赣锋锂业) and brings nearly two decades of experience in lithium battery materials.
In April, the company disclosed a patent for a high-performance polyvinylidene fluoride-based solid electrolyte.
Polyvinylidene fluoride, or PVDF, is a heat-resistant fluoropolymer commonly used in lithium batteries for electrolyte and binder materials because of its chemical stability and ionic conductivity.
Local government disclosures show the company plans annual capacity of 11,000 tons of solid-state electrolyte materials. It targets electric vehicle supply chains, including potential links to Geely and BYD.
State-backed investors hold about 15% of the company, making them the second-largest shareholder group after the founding team.
Upstream segments
Notably, this is not Zhong’s first cross-sector bet. Yangshengtang-linked capital has invested in biomedical materials such as recombinant collagen, electronic chemicals including photoresists, and agricultural assets such as ancient tea trees in Yunnan and fruit bases in Xinjiang.
The pattern is consistent. Zhong focuses on upstream segments with technical or resource barriers and avoids downstream, often ruthless consumer competition.
Analysts describe the approach as a “pick-and-shovel” strategy. It targets foundational inputs in industries where end-market competition is already intense and key technologies such as solid-state electrolytes remain unresolved.
The fund structure gives Zhong flexibility and limits direct exposure to execution risk in a capital-intensive emerging sector, analysts say.
