Chinese Solid-State Battery Demand Expected to Surge Over the Next Five Years
As of May 18, 2025, the demand for solid-state batteries in the automotive sector is projected to grow significantly. With advancements in intelligent manufacturing technology and new developments in electric vehicle battery technology, the demand for solid-state batteries is anticipated to rise sharply. The CIBF 2025 event in China highlighted the importance of solid-state battery production and technology as key focus areas for businesses in the industry.
Compared to traditional lithium-ion batteries, solid-state batteries offer improved safety, energy density, and longevity. According to recent reports from the China Electric Vehicle 100 People’s Association, solid-state battery energy density is expected to surpass 500 Wh/kg, while lithium-ion battery energy density has approached its upper limit of around 350 Wh/kg. This transition is crucial as solid-state batteries are viewed as the future of electric vehicles.
However, the industry still faces challenges, particularly in terms of high production costs and manufacturing scalability. The latest reports indicate that solid-state battery production costs could reach 5 yuan/Wh, necessitating substantial investment to drive down these costs over time. Moreover, as technology progresses, manufacturers will need to enhance their production capabilities to meet the growing demand.
Recent announcements have revealed plans to produce solid-state batteries at a scale of 1,000 GWh by 2025. The industry must address the current high costs associated with solid-state battery materials, with prices potentially reaching 1,000 yuan per kilogram if production does not scale effectively. More companies are beginning to invest in solid-state battery technology, and it is expected that significant developments will occur within the next few years.
In terms of application, solid-state batteries are currently enhancing electric vehicle performance. Long-range electric vehicles are expected to reach energy densities of 400 Wh/kg, with a range of 1,500 kilometers anticipated by 2025. The first generation of solid-state battery applications is projected to debut in the newly released MG4 this year.
Overall, the demand for solid-state batteries is expected to significantly impact the electric vehicle market, with projections indicating a 30% annual growth rate. By 2035, the market is anticipated to reach 500 GWh, with solid-state batteries comprising roughly 41% of the total market share.
In conclusion, while solid-state batteries currently face challenges related to cost and production capabilities, ongoing advancements in technology and increased investment in research and development are likely to drive significant progress in the coming years.
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