Backed by an established hold on lithium-ion battery production worldwide, the country has set its sights on extending that industrial reach into solid-state battery technology. Announced as part of a five-year roadmap, the push into solid-state battery technology unfolds against a backdrop of intensifying international competition, with organisations and enterprises across multiple regions working to develop alternatives to lithium-ion cells — a field where one country has built up a substantial lead.
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Figures published around that period placed the value of China's solid-state battery sector at roughly $42.5 million, according to coverage of the battery plan. Forecasts place that figure at $384.8 million by 2030, underpinned by policy support, with the sector's compound annual growth rate of 44.4% running ahead of the 37.5% projected for batteries worldwide.
Across the electric vehicle sector and virtually every other product category that relies on stored electrical energy, lithium-ion technology has established itself as the prevailing power source. Production costs for lithium-ion batteries remain elevated, the materials involved — lithium among them — carry considerable price tags, and the technology brings with it a known risk of fire.
Among the technologies drawing attention in the battery space, solid-state designs stand out for their potential to undercut lithium-ion on cost while delivering greater energy density, quicker charge cycles, a longer operational lifespan, and the prospect of pushing electric vehicles farther on a single charge. Repeated technical setbacks have long hindered progress in solid-state battery development.
Cost reduction stands as a shared challenge for those working on solid-state battery technology, just as it has long been for the lithium-ion sector. Researchers are also directing attention toward electrode materials, electrolytes — an area where solid-state batteries have shown vulnerability — and a range of other novel compounds.
Laboratory work on solid-state batteries has yielded a string of incremental breakthroughs, and vehicle manufacturers are watching the technology closely as a likely next step in powertrain development. BYD disclosed a timeline for bringing solid-state battery production to scale across its electric vehicle lineup, with full output targeted by the end of the decade. Plans call for both lithium-ion and solid-state battery technologies to run alongside each other in the automaker's upcoming vehicle lineup, rather than one replacing the other.
Sodium batteries and flow batteries — each viewed as a possible rival to the lithium-ion cells that currently dominate the market — are among the technologies addressed in the plan, though neither has yet gained comparable commercial traction.
Ranked among the globe's leading purchasers of electric vehicles, China also holds a prominent position in battery storage capacity. Surplus production capacity in lithium-ion battery manufacturing has become a pressing issue for the country to address.
Advancing into solid-state battery development gives the country a path toward broadening its technological footprint in energy storage, even as manufacturers work through a surplus of existing lithium-ion capacity across both electric vehicles and grid storage applications. Solid-state battery development aligns with an upward trajectory in demand, driven by decarbonisation mandates across major economies and the rapid growth of data centres, which face mounting pressure to generate electricity on-site rather than drawing heavily from fossil-fuel sources.