According to a person with direct knowledge of the situation, China intends to invest more than 6 billion yuan ($830 million) in a government-led project to develop solid-state batteries, with six companies qualified for state support to work on the next-generation technology.
Compared to traditional lithium-ion batteries, which use volatile liquid electrolytes, solid-state batteries offer the promise of increased safety, a longer lifespan, and faster charging. However, widespread use is still a ways off because of limitations in the supply of raw materials, complex manufacturing procedures, and the ensuing high costs.
China is attempting to maintain its dominant position in the global EV market following early and significant investments in internal supply chains that made it the world’s most affordable battery and EV manufacturer.
According to the source, battery manufacturers CATL and Nio-backed WeLion New Energy Technology have been selected as possible project participants.
Geely said he would not comment. Reuters reached out to the other companies for comment, but they did not respond right away.
The competitiveness of next-generation EVs is expected to be determined by solid-state batteries, according to several auto industry leaders and analysts. In an effort to challenge China’s hegemony in the field of EV battery technology, a number of international automakers are also investigating the technology.
A latecomer to the electric vehicle (EV) market, Toyota Motor of Japan has announced that it will introduce solid-state battery-powered vehicles over the next several years.
(Source : REUTERS)