China Modifies Solid-State Competition Landscape
China and Japan Race to Lead the Solid-State Battery Revolution
The global electric vehicle (EV) market is about to witness a significant shift, as China and Japan are both aggressively pursuing the commercial production of solid-state batteries (SSBs). This development, set to unfold in the late 2020s, is poised to reshape the EV landscape and intensify the race for battery supremacy.
In China, the government has launched the China All-Solid-State Battery Collaborative Innovation Platform (CASIP), a consortium that brings together governmental bodies, academic institutions, and industry titans such as CATL and BYD. The mandate of CASIP includes fundamental research, technological advancements, and collaborative efforts to integrate solid-state batteries into EVs. China aims to control 40% of the global solid-state battery market by 2030 through aggressive investments and government support. Chinese automakers, such as Guangzhou Automobile Group, plan to adopt solid-state batteries by 2026, with some mass production scheduled to begin as early as 2025.
Japan, led by Toyota, is also making strides in the solid-state battery arena. Toyota plans to start commercial solid-state battery production by around 2027 to 2028, initially applying these batteries in hybrid vehicles around 2025 before extending to full EVs shortly after. Toyota's partnership with Idemitsu Kosan and investments in facilities aim to support this timeline, despite some delays like the Fukuoka plant pushback from 2025 to a later date due to construction and market demand factors.
The transition to solid-state batteries signifies a fundamental shift in battery technology, making current leaders in the EV market, predominantly Chinese companies, need to reaffirm their positions at the forefront. This transformation also presents an opportunity for other players to challenge the dominance of current leaders in the EV market.
The battle for dominance in the solid-state battery era has only just begun. China's dominance in existing automotive battery technology could potentially challenge Japan's incumbency in the solid-state battery market. The ultimate goal of CASIP is to establish a robust global supply chain with Chinese companies at its core. China is leveraging cutting-edge tools like artificial intelligence to accelerate research and development in solid-state batteries, giving Chinese stakeholders an optimistic outlook about a shorter timeline for mass production compared to Toyota.
During the consortium's inauguration ceremony, Ouyang Minggao, a professor at Tsinghua University specializing in automotive technologies, underscored the urgency of this initiative. Professor Ouyang warned against complacency, recognizing the disruptive potential of solid-state batteries to reshape the automotive landscape. Major players in the battery industry, including CATL, BYD, CALB, EVE Energy, and Gotion High-tech, have rallied behind this initiative.
As the race heats up, the global car market's embrace of electrification intensifies the competition for solid-state battery supremacy. The implications of this shift for the entire sector are significant, with China and Japan both aiming to control a substantial portion of the market and reshape the EV landscape by 2030. Solid-state BEVs are different products from regular BEVs, promising superior performance, safety, and longevity compared to current lithium-ion batteries. This technological and manufacturing race could reshape the EV market, with these countries maintaining or expanding their influence through proprietary technology and market share.
The race for solid-state battery supremacy is attracting investments from various sectors, including finance and technology, as the future of electric vehicles hangs in the balance. China, with its collaboration platform CASIP, aims to leverage artificial intelligence for rapid research and development, aiming to control a significant portion of the solid-state battery market by 2030. In contrast, Japan, led by Toyota, seeks to bring solid-state batteries to market by around 2027, initially applying them to hybrid vehicles and expanding to full EVs soon after. This competition in the energy sector could potentially redefine the dominance of players in the EV industry and business landscape by 2030.
