Chinese battery manufacturers have begun shipping semisolid-state cells, establishing an early manufacturing lead in a technology long viewed as essential for next-generation electric vehicles. The move underscores China's dominance: the country already produces more than 80 percent of the world's lithium-ion batteries.
China's strategy is coordinated. A government-backed consortium called CASIP—comprising CATL, BYD, CALB, Nio and SAIC Motor—aims to build a complete domestic supply chain for all-solid-state batteries and achieve large-scale commercialization by 2030.
U.S. competitors are pursuing different manufacturing paths. QuantumScape, Volkswagen-backed and based in San Jose, has spent 15 years developing ceramic-based cells on a pilot line in Silicon Valley. The company has accumulated a deficit exceeding $3.9 billion. Its cells claim energy density of up to 301 watt-hours per kilogram and 844 watt-hours per liter by volume.
Factorial Energy, led by CEO Siyu Huang and based in Billerica, Massachusetts, develops polymer cells currently being tested by Mercedes-Benz and Stellantis. Factorial's cells claim 391 Wh/kg and 748 Wh/L.
The critical difference lies in manufacturing: QuantumScape requires an entirely new production process for its chemistry. Factorial designed cells compatible with much of the existing battery industry's equipment—a significant economic advantage if the technology scales.
The economics matter. U.S. battery manufacturing investment has focused almost exclusively on existing lithium-ion technology, not next-generation cells. China's 20-year head start in strategic battery investment—starting with its 2001 Five Year Plan push into electric vehicles—has yielded compounding advantages in cost, supply chain integration and economies of scale.
Toyota, holder of the most corporate patents in solid-state technology, expects cells in its vehicles within two years. Announcements from China, Japan, South Korea and the United States are accelerating.
But skepticism is warranted. Tim Holme, co-founder and chief technology officer of QuantumScape, said that despite frequent laboratory announcements, "approximately zero have materialized into industrial reality."
The Donut Lab case illustrates the point. The Finnish startup announced a high-performance solid-state cell with double the energy density of lithium-ion batteries, claiming no rare-earth minerals or fire risk. In June, researcher Ryan Hughes and external experts published evidence the cell was actually a high-performance lithium-ion battery containing liquid electrolyte—not solid-state technology at all.
