China aims to be the solid-state battery production leader with a grand state subsidy push
China will be fronting the world's largest battery companies more than $800 million in research and supply chain grants for the development and production of solid-state batteries.
Considered to be the next stage in EV battery development, cells with solid-state electrolyte come with much higher energy density while being safer and faster to charge than current lithium batteries used in electric vehicles.
The government's R&D subsidy program has identified several companies in different stages of development and production of solid-state cells.
These include not only the world's largest EV battery makers CATL and BYD, but also startups like WeLion that already has a 150 kWh pack with semi solid-state electrolyte in production, used in NIO's electric cars.
China made electric vehicles and batteries a public policy priority about a decade ago, and the result is a production rate and cost superiority that made it an industry price leader. The Chinese government now wants to continue that trend by investing heavily in solid-state batteries, so that it keeps its competitive advantage as an EV powerhouse.
There are no restrictions in the solid-state battery research subsidy, and the government will let CATL, BYD, FAW, SAIC, WeLion, and Geely explore all promising avenues for the production of solid-state cells.
The ministries responsible for doling out the $830 million in government research grants have identified seven categories where the government can help private companies spearhead their solid-state battery efforts.
These include both the established sulfide, and the polymer electrolyte methods, as China wants to hedge its solid-state battery bets by investing in any and all technologies that will bring them to the mass electric car market faster.
The government's push may have convinced the world's biggest battery maker CATL to turn its focus back on the development of solid-state batteries, after sniffing at their prospects not long ago.
CATL wants to bring them to market in 2027, much earlier than the 2030 timeframe it previously entertained. It has also set aside research and engineering resources aiming to hit 500 Wh/kg energy density by the time Toyota said it will be out with its own solid-state battery vehicles.
