China plans to increase its investment in advanced electric vehicle batteries by $845 million

China has announced intentions to invest around $845 million in the development of next-generation batteries for electrical vehicles (EVs), despite the fact that its industrial policy has raised worries about overcapacity and made it a major focus of criticism from the US and Europe.

According to a story published in the official China Daily newspaper on Wednesday, a total of six businesses, including the largest battery producer in the world, CATL, and significant automakers like BYD and Geely, are qualified for government funding to create all-solid-state batteries (ASSBs).

Without providing any information, it stated that the various government committees and ministries will oversee the «unprecedented» endeavor.

ASSBs are a novel technology that replaces liquid or gel-form material with a solid, conductive electrolyte to improve on conventional lithium-ion batteries (LIBs). They are thought to be safer and more potent than traditional batteries since they have a higher energy density and are less prone to catch fire or explode.

However, because they are expensive and difficult to create in large quantities, the powerful batteries are not currently readily available.

China’s economic ties with the West are now tense, which is why the news of Beijing’s planned investment is concerning.

The Biden administration placed significant additional tariffs on Chinese electric vehicles (EVs), sophisticated batteries, and other products earlier this month. According to American authorities, they wish to shield US companies and workers from issues brought on by the overproduction of some goods in the second-biggest economy in the world.