Chinese battery and automotive makers are working to develop the next generation of batteries for electric vehicles, with manufacturers SAIC Motor and BYD set to launch EVs equipped with all-solid-state batteries (ASSB) in 2027.

In early March, state-owned SAIC and battery startup Qingtao (Kunshan) Energy Development Group assembled a prototype EV equipped with an ASSB dubbed the “Guangqi” battery. The companies aim to bring the product to market in 2027 after repeated testing for mass production.

ASSBs replace the liquid electrolyte used in conventional batteries with a solid material. They are seen as a game changer for EVs because they address the shortcomings of existing lithium-ion batteries.

Among their advantages is improved safety, with next-generation batteries eliminating the risk of thermal runaway—uncontrollable heat buildup—caused by electrolyte leakage. They also boast a high energy density that is expected to enable driving ranges of over 1,000 kilometers.

SAIC and Qingtao Energy are working on both ASSBs and their precursor, semi-solid-state batteries. MG, a British brand under SAIC’s umbrella, has already launched models equipped with semi-solid batteries that reduce liquid electrolyte content to 5%.

Among the brand’s MG4 EV lineup, the semi-solid battery version offers a driving range of 530 kilometers on a full charge, based on China’s testing standards. The vehicle is priced from RMB 90,000 (USD 13,248.2). The battery is said to maintain stable performance even in low temperatures. It is being adopted in additional models, such as the recently released MG4X sport-utility vehicle.

Chinese automaker BYD is aiming to install ASSBs in some vehicles around 2027. Originally a mobile phone battery maker, the company now develops and produces lithium iron phosphate batteries in-house. It began work on ASSBs as early as 2013 and is targeting 2030 for large-scale production.

The ASSB market is projected to reach RMB 5.7 billion (USD 839 million) in 2027 and RMB 113.8 billion (USD 16.8 billion) in 2030, according to Guosen Securities. An industry group forecasts that by 2040, about half of global battery demand will be replaced by solid-state or semi-solid batteries.

China held a more than 70% share of the global car battery market in 2025, based on installed capacity. Japanese and South Korean companies are stepping up their own ASSB development programs in an effort to catch up.

In Japan, Toyota Motor aims to commercialize EVs with ASSBs between 2027–2028, working with Idemitsu Kosan and Sumitomo Metal Mining to prepare for mass production. Nissan Motor is targeting commercialization by fiscal 2028, while Honda Motor is aiming for the latter half of the 2020s.

But the path to widespread ASSB adoption differs significantly between Japan and China. Chinese firms are actively developing and deploying semi-solid batteries as a bridge to ASSBs, while Japanese companies for the most part have not pursued semi-solid battery development.

At a major battery exhibition held in mid-May in Shenzhen, enthusiasm for new battery tech bubbled over as attendance reached a record high.

At the booth of battery maker Gotion High-tech, crowds gathered around a semi-solid battery pack that the company expects to be installed in cars from major manufacturers from as early as this year.

“The ultimate goal for battery companies is to install all-solid-state batteries in vehicles,” said a company representative at the booth. Gotion has already completed a production line with a capacity of two gigawatt-hours for ASSBs. It aims to significantly lower costs in the future—down to RMB 1 (USD 0.1) per watt-hour—by expanding production of materials like sulfide-based solid electrolytes.

Battery makers CALB and EVE Energy, along with automakers such as Chery and GAC, are likewise pursuing commercialization of ASSBs while using semi-solid technologies. The Chinese players are working with semi-solid batteries in part because “they need to continuously release new products in short cycles, or else they’ll lose to the intense competition in the country,” according to an employee at a Japanese battery company.

But challenges to widespread adoption remain. “Semi-solid batteries can utilize about 80% of existing production lines, whereas all-solid-state batteries require new lines, meaning double or more the required investment,” said Tang Jin, senior researcher at Mizuho Bank. “Costs are particularly burdensome in the initial stages, when economies of scale aren’t yet achievable.”

As long as production of ASSB-equipped vehicles remains limited to around 20,000–30,000 units, some think the price of ASSBs could be more than five times that of current lithium-ion batteries. Companies like Gotion are looking to cut costs, but it is unclear whether there will be enough demand for mass production.

Stable mass production will also require the creation of new manufacturing processes and supply chains.

But China has the world’s largest market for electrified vehicles, with EV and plug-in hybrid car sales totaling about 16 million units annually, nearly half of new car sales. The puts Chinese companies in a position to accelerate the adoption of new technologies and stay ahead of rivals elsewhere.

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 8, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.