China Sets Up Fund to Spur Development of Solid-State EV Batteries, Source Says

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A battery made by FinDreams, the battery unit of carmaker BYD, on display in Beijing on Aug. 17, 2023. Photo: VCG

China has established a dedicated fund of about 6 billion yuan ($828 million) to stimulate the development of solid-state batteries for electric vehicles (EVs), an industry insider told Caixin.

The revelation comes as some domestic EV-makers have been trying to figure out the best pathway to commercializing the potentially groundbreaking technology.

Solid-state batteries, so-named for their use of solid electrolytes, are considered a potential game changer for the EV industry because they enable high-voltage, high-capacity cathodes that provide a huge boost to battery performance, along with advantages in safety and shortened charging times.

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China has established a 6 billion yuan ($828 million) fund to advance solid-state battery development for EVs, aiming to commercialize the technology quickly.
Solid-state batteries offer high-voltage, high-capacity benefits, potentially allowing EVs to travel over 1,000 miles per charge, with improved safety and charging times.
Major Chinese automakers and battery-makers, including SAIC Motor and Contemporary Amperex Technology, have outlined plans to begin mass production of solid-state batteries by 2027 despite current high production costs and technical challenges.

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Who’s Who

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. (600104.SH) has announced a phased plan to establish a solid-state battery production line by 2025, start mass production in 2026, and launch vehicles equipped with these batteries in 2027. They also created an alliance for solid-state battery development, comprising universities, research institutions, and industry companies.

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (300750.SZ), the world’s largest EV-battery maker, plans to begin small-scale production of solid-state batteries by 2027. However, the company acknowledges that there is a significant journey ahead before solid-state battery technology matures.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (601238.SH) plans to equip its vehicles with fully solid-state batteries by 2026. These batteries, developed by the company, feature a higher energy density compared to the commonly used lithium-ion batteries with liquid electrolytes.

QingTao (KunShan) Energy Development Co. Ltd.: QingTao (KunShan) Energy Development Co. Ltd. has developed a semi-solid state cell as a transitional product. This innovative cell has already been used in an EV model by IM Motors Technology Co. Ltd., a company backed by SAIC and Alibaba Group Holding Ltd.

BYD Co. Ltd.: At an industry event, Pan Yi, research chief at FinDreams Battery Co. Ltd., BYD Co. Ltd.'s battery-making subsidiary, stated that solid-state batteries would only see large-scale adoption once the cost of solid electrolytes decreases significantly.

Gotion High-tech Co. Ltd.: Gotion High-tech Co. Ltd. (002074.SZ) is a Chinese battery-maker. Zhu Xingbao, the company's chief scientist, expressed skepticism about manufacturers' ability to control the quality of solid-state batteries due to the lack of consensus on the technology for making solid electrolytes.

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What Happened When

November 2023：: Guangzhou Automobile Group Co. Ltd. announced plans to equip its vehicles by 2026 with fully solid-state batteries.

April 2024：: Contemporary Amperex Technology Co. Ltd. said it will begin small-scale production of solid-state batteries by 2027.

May 2024：: SAIC Motor Corp. Ltd. announced a phased plan to establish a solid-state battery production line by 2025, begin mass production in 2026, and launch models equipped with the batteries in 2027.

Friday, May 31, 2024：: Pan Yi stated that solid-state batteries won’t have a chance of making it into EVs on more than a small scale until the cost of solid electrolytes drops significantly.

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