China is not falling behind in the battery race. On the contrary, the country still controls a large share of the industrial chain that powers the electric cars sold worldwide.
According to the International Energy Agency, in 2025 China accounted for more than 80% of global battery cell production, and it also led the manufacturing of the active materials used in batteries for electric vehicles.
That dominance is driven by giants such as CATL, BYD and CALB, backed by a vast domestic market and an industrial ecosystem built at enormous scale. However, a warning now coming from within China suggests that while the country may keep its lead in mass battery production, it could lose some of its technological edge in the development of solid-state batteries.
A report cited by the Chinese press cautions that, despite China’s lead in scientific output and patent volumes, it may not be able to dominate solid-state battery manufacturing in the same way. The reason lies in the nature of the technology itself: it is not simply the next step on from today’s batteries. It is a different race, relying on different materials, new industrial processes, and a far more intense contest over intellectual property.
Solid-state plays by different rules
Solid-state batteries replace the liquid electrolyte used in current batteries with a solid material. In theory, that change could deliver higher energy density, improved thermal safety, faster charging, and more compact packs. In other words, it promises exactly what the automotive industry wants to make EVs more attractive.
In practice, though, it is a headache. The technology remains difficult to industrialise, with hurdles that include material interface stability, longevity, dendrite formation, the moisture sensitivity of certain electrolytes, raw material costs, and the ability to produce millions of cells with consistent quality - yes, it sounds like we’re speaking Chinese. Jokes aside, there is an Auto Talks piece that explains what dendrites are and some of these drawbacks.
Put simply, it is one thing to produce millions of lithium-ion LFP (Lithium Iron Phosphate) or NMC (Nickel, Manganese and Cobalt) cells with high industrial efficiency. It is another to master a technology that is still moving out of the prototype stage and depends on entirely different chemical interfaces and manufacturing methods. China’s scale is still a major advantage, but in this race it may not be enough.
The most important patents are outside China
China holds around 35% of patents linked to solid-state batteries and about 39% of patents related to electrolytes. Scientific output has surged, rising from 21 papers in 2015 to 562 in 2023. These figures clearly show strength, but they do not tell the whole story.
When you focus on where the most influential patents are concentrated, the picture shifts. Among the world’s top 30 entities for solid-state battery and electrolyte patents, there are 17 Japanese, seven Chinese, five South Korean, and just one European. In the Top 10, there are no Chinese entities at all.
This does not mean Chinese companies will be shut out. They can develop their own approaches, work around patents via alternative processes, license technology, or challenge existing filings. Even so, intellectual property carries growing weight as a technology moves from the lab into global contracts with automotive manufacturers.
Toyota’s moment?
In this context, Toyota is the name to watch most closely. The Japanese brand has worked on solid-state batteries for years and has been strengthening partnerships in materials-one of the decisive factors in turning this promise into a production reality. At present, the company accounts for 40% of global solid-state battery patents.
Idemitsu Kosan is developing lithium sulphide to support Toyota’s plans, with a new facility in Japan scheduled for June 2027. According to Reuters, the investment is expected to be around 21.3 billion yen (about €114.9 million at the current exchange rate), with annual capacity sufficient for 50,000 to 60,000 electric vehicles.
In South Korea, companies such as Samsung SDI, LG Energy Solution and SK On are also part of this race. Korea’s edge lies in its accumulated industrial experience with high energy density cells and its close links with global automotive manufacturers.
Europe will remain dependent
For Europe, this potential reshuffle is uncomfortable. The European automotive industry already relies heavily on Asia for batteries, and it has not yet managed to turn industrial ambition into a supply chain comparable to those in China, Japan or South Korea.
According to the International Energy Agency, almost all battery cells used globally are supplied by companies headquartered in China, South Korea or Japan. In addition, the number of Chinese producers operating in the European Union has almost doubled since 2023.
If China retains its advantage in high-volume batteries while Japan and South Korea gain ground in solid-state, Europe’s strategic room for manoeuvre will remain limited-regardless of the industrial plans Brussels is able to mobilise.
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