China Targets Solid-State Battery Dominance by 2030

China, already dominating the global lithium-ion battery market, plans to expand this position to solid-state batteries, too. The government in Beijing will seek to cut solid-state battery costs, boost their performance, and begin commercial production by 2030.“Over the next five years, the new-type battery industry is at a critical window for technological upgrading, and we must seize the strategic opportunities presented by technological and industrial innovation,” China’s Ministry of Industry and Information Technology said in a news release, as cited by the South China Morning Post.The five-year plan for solid-state batteries comes amid a global race in that segment, as researchers and businesses in other parts of the world try to circumvent or challenge China’s existing dominance in lithium-ion battery tech, and diversify away from lithium-ion technology as well.As of last year, China’s solid-state battery market was worth some $42.5 million, the Global Times reported in a news piece on the battery plan. This should grow to $384.8 million by 2030 as a result of government encouragement, with an annual compound growth rate at an impressive 44.4%, compared to a global average CAGR projected for batteries of 37.5%. Bringing costs down seems to be priority number-one for solid-state battery developers—an issue that battery tech shares with lithium-ion technology. Focus areas also include developing new electrode materials, new electrolytes—a vulnerability for solid-state batteries right now—and other new materials to use in solid-state batteries. The plan covers technologies including sodium batteries and flow batteries, two potential challengers to lithium-ion technology that have yet to become as popular as the dominant battery technology.Lithium-ion batteries are dominant on the EV market and all other markets for products that use batteries, as much thanks to their performance as to the absence of real rivals. Lithium-ion batteries are expensive, they can be a fire hazard, and they rely on some costly materials, including lithium itself.By comparison, researchers see solid-state batteries as a viable alternative that can be cheaper and more reliable, with higher energy density than lithium-ion batteries, faster charging times, a longer life, and, importantly, the possibility of extended ranges for electric vehicles. But first, they need to solve the problem with solid-state battery failures, which has plagued research in the area for years.Some recent advances have been made in that respect by researchers in the lab, while automakers eye solid-state batteries as the next big hit. Indeed, China’s own BYD recently said it planned to start the mass manufacturing of solid-state batteries for its electric vehicles by 2030. The company, which is a major player on the EV market globally, will not drop lithium-ion technology in favor of solid-state but would rather use both in its future models.China is the world’s biggest market for electric vehicles and a top player in battery storage as well. Just like EVs and solar panels, these energy transition-linked industries have enjoyed years of generous subsidies that have allowed them to grow without any consideration of overcapacity and its consequences.Now, China is having to tackle battery overcapacity—in lithium-ion technology. The news about the solid-state battery plan, however, suggests it can also expand in battery technology while dealing with overcapacity in lithium-ion technology, both for EVs and for battery storage.The plan for solid-state batteries also reflects demand trends, which have been moving upwards, thanks to energy transition policies in key markets and, most recently, to the fast expansion of the data center industry, which is being encouraged, and sometimes ordered, to generate as much of its own electricity as possible—while saving the planet by using fewer hydrocarbons.By Irina Slav for Oilprice.comMore Top Reads From Oilprice.comLNG Canada to Double Export Capacity After Shell Approves Phase 2Saudi Arabia Restarts Red Sea Crude Oil LoadingsIndia Looks to Boost Exploration as Hormuz Crisis Threatens Supply