China pours $830m into solid-state battery race

China is ramping up its electric vehicle (EV) leadership by committing more than six billion yuan ($830 million) to a state-led initiative aimed at advancing solid-state battery technology, Reuters reported on Wednesday.

Solid-state batteries show promise for EVs with improved safety, longer lifespans, and faster charging. However, challenges like material shortages, complex production, and high costs limit their widespread use.

China aims to maintain its global leadership in the EV market by capitalising on its early investments in domestic supply chains, making it the most cost-competitive producer of batteries and EVs globally.

The project involves key players in the Chinese EV industry, including battery manufacturers CATL and WeLion New Energy Technology backed by Nio, according to the statement.

In a addition to major automakers like BYD, FAW, SAIC, and Geely are also part of the initiative. Geely chose not to comment, and the other companies have not confirmed their participation.

Japan’s Toyota, a relative latecomer to the EV scene, has announced plans to launch vehicles powered by solid-state batteries within a few years. Tesla, however, has remained silent on any solid-state development plans.