China to invest $830 million in solid-state batteries

30 May 2024

China, being the global electric vehicle powerhouse that it is, is doubling down on its commitment to lead the industry. The country has earmarked RMB 6 billion (that's around $830 million at current exchange rates) for research and development of all-solid-state batteries, hoping to accelerate the evolution of EV technology.

The government-backed initiative, spearheaded by leading Chinese companies such as CATL, BYD, FAW, SAIC, WeLion, and Geely, is an unprecedented move in its scale and scope. These industry giants will collaborate on developing innovative solid-state battery technologies, looking at diverse approaches like polymers and sulfides.

This significant investment reflects China's recognition of the immense potential of all-solid-state batteries. This technology, which boasts a higher energy density, enhanced safety, and lower costs than traditional lithium-ion batteries, is considered the holy grail of EV batteries. With countries worldwide intensifying their investments in this field, China wants to maintain its leading position in the EV market.

While the $830 million investment in basic R&D is substantial, the project's ripple effects are even more significant. The initiative is expected to stimulate further investment from companies across the industrial chain, potentially creating a market worth trillions of RMB. This surge in investment could propel the global transition towards greener and more sustainable development.

Chinese EV manufacturer Nio has already dipped its toes into this promising technology with its 150-kWh semi-solid-state battery, introduced in its ET7 sedan. However, the high cost of this cutting-edge technology remains a big problem. Nio's co-founder and president, Qin Lihong, stated that the battery pack's price would be comparable to the cost of an entire ET5 sedan, Nio's most affordable model.

Major battery manufacturers are forging ahead with their solid-state battery research despite the cost challenges. Gotion recently unveiled its all-solid-state battery, Gemstone, boasting an impressive energy density of 350 Wh/kg. The company projects small-volume production to commence in 2027, with mass production anticipated by 2030.

CATL, another key player in the battery industry, aims to achieve small-volume production of all-solid-state batteries by 2027. The company claims to be at the forefront of this technology, possessing a vast inventory of solid-state battery technology.

With Sunwoda, another battery manufacturer, also announcing plans for mass production of solid-state batteries in 2026, the race toward commercialization of this groundbreaking technology is heating up.

Via