(CTN News) – China intends to invest approximately 6 billion yuan ($845 million) in developing next-generation battery technology for electric vehicles (EVs), despite its industrial policy triggering overcapacity worries and making it a primary target of US and European objections.
According to anonymous industrial sources, six companies, including CATL, the world’s largest battery manufacturer, and major automakers such as BYD and Geely, are eligible for government financing to create all-solid-state batteries (ASSBs).
According to the statement, the necessary government departments and commissions will lead the “unprecedented” effort, but no further information is provided.
ASSBs are a new technology that improves on traditional lithium-ion batteries (LIBs). It uses a solid, conductive electrolyte instead of liquid or gel-form materials. They are less likely to catch fire or explode than traditional batteries and have a higher energy density, making them thought to be safer and more powerful.
However, strong batteries are currently unavailable due to their high cost and difficulty in mass production.
The announcement of Beijing’s planned investment is critical for China’s commercial relations with the West.
The Biden administration has placed significant tariffs on Chinese electric vehicles, batteries, and other items. American authorities said they want to shield US workers and businesses from the challenges caused by the overproduction of specific products in the world’s second-largest economy.
The European Commission is expected to rule on Chinese EV tariffs early next month, which might cause problems for Chinese EV manufacturers, who export hundreds of thousands of vehicles to Europe yearly.
Beijing aims to foster a low-carbon economy and counteract a property-induced economic downturn by increasing electric vehicle production.
Global automakers and technology businesses are also developing ASSBs.
CNN reported that Toyota (TM) plans to launch automobiles with solid-state batteries in the coming years.Samsung SDI announced in March that it would start mass-producing solid-state batteries in 2027. Volkswagen has also collaborated with Quantum Scape, a US startup, to produce batteries.
Chinese rivals are likewise raising the stakes. GAC Group, a state-owned manufacturer located in Guangzhou, announced in November that it had made a breakthrough in solid-state batteries and would begin producing vehicles with them in 2026.
