China to invest $845 million on ramping up its advanced EV battery ambitions

China plans to invest around 6 billion yuan ($845 million) to develop next-generation battery technology powering electrical vehicles (EVs), even as its industrial policy has sparked overcapacity concerns and become a key target of US and European complaints.

A total of six companies — including Contemporary Amperex Technology (CATL), the world’s biggest battery manufacturer, and major automakers like BYD and Geely — are eligible for government support to develop all-solid-state batteries (ASSBs).

The “unprecedented” project will be led by the relevant government ministries and commissions, it said, without giving details.

However, the powerful batteries are not widely available at the moment due to their high cost and difficulty in being mass produced.

The news of Beijing’s intended investment comes at a fraught time for China’s trade relations with the West.

Earlier this month, the Biden administration imposed major new tariffs on Chinese EVs, advanced batteries and other goods. American officials say they want to protect US jobs and businesses from problems posed by the overproduction of certain products in the world’s second largest economy.
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