China is set to invest over 6 billion yuan ($830 million) in a government-led initiative aimed at advancing solid-state battery technology, according to a source with direct knowledge of the plan. This ambitious project will involve six companies selected to receive state funding to develop the next generation of batteries.
Solid-state batteries offer significant advantages over traditional lithium-ion batteries, including enhanced safety, longer lifespan, and faster charging times. However, widespread adoption is still hindered by challenges such as limited raw material availability, complex manufacturing processes, and high production costs.
China aims to solidify its leadership in the global electric vehicle (EV) market, building on its substantial early investments in domestic supply chains that have made it the most cost-competitive producer of batteries and EVs worldwide.
The companies chosen for this project include leading battery manufacturers CATL and Nio-backed WeLion New Energy Technology. Other participants are BYD, a major competitor of Tesla in the EV market, and automakers FAW, SAIC, and Geely, according to the source who requested anonymity.
While Geely declined to comment, the other companies did not immediately respond to Reuters’ requests for comments.
Industry experts and analysts believe that solid-state batteries will play a crucial role in determining the competitiveness of future EVs. Various global automakers are also exploring this technology in a bid to challenge China’s current dominance in EV battery technologies.
Toyota Motor of Japan, which has been slower in the EV race, has announced plans to launch vehicles powered by solid-state batteries within a few years. Conversely, Tesla has yet to reveal any solid-state battery development plans.
The state-funded project was initially reported by the official China Daily.
