Chery Commits US$1.49 Billion to Solid-State Batteries as China’s EV Race Enters Its Next Phase

Chery chairman Yin Tongyue announced the testing timetable at the 2026 World Power Battery Conference in Yibin, Sichuan province. The Anhui-based, state-owned carmaker, which is China’s largest vehicle exporter by deliveries, intends to invest 10 billion yuan, equivalent to approximately US$1.49 billion, in solid-state battery development over the next two years. It will also deploy around 1,200 engineers to the programme. This is a substantial commitment that shows Chery wants to control more of the technology underpinning its electric vehicles rather than relying entirely on external battery suppliers.

The company said its all-solid-state cells had achieved an energy density of 400 Wh/kg, roughly twice the level of many batteries currently used in electric vehicles. Higher energy density would allow an automaker to extend driving range without proportionally increasing battery weight, or to produce lighter vehicles while maintaining a similar range. Solid-state batteries replace the flammable liquid or gel electrolyte used in conventional lithium-ion cells with a solid material, potentially improving thermal stability and reducing fire risks. Chery has nevertheless emphasised that no battery will be installed in a vehicle until it has passed extensive testing under high temperatures, extreme cold, collisions, underbody impacts and water immersion.

Chery is following a two-step commercialisation strategy. A solid-liquid hybrid, commonly described as a semi-solid battery, is scheduled to be installed in vehicles in the fourth quarter of 2026. The more technically demanding all-solid-state version will enter vehicle-level validation in 2027. Chery has developed a 400 Wh/kg sulfide-based cell using a high-nickel cathode, while it has also displayed a polymer-based experimental cell rated at 600 Wh/kg. The company has suggested that its most advanced technology could eventually support driving ranges exceeding 1,500 kilometres, although this remains a development target rather than performance proven in a mass-produced vehicle.

The timetable places Chery in direct competition with China’s leading automakers and battery suppliers. CATL and BYD are both targeting limited deployment of all-solid-state batteries around 2027, while Geely plans to complete its first internally developed solid-state pack and begin vehicle validation. Dongfeng has also announced plans for tens of thousands of solid-state-equipped vehicles in 2027. The clustering of these timelines shows that the industry is moving beyond laboratory samples, but it does not mean mass adoption is imminent. Vehicle validation, demonstration fleets and small-volume production are very different from manufacturing millions of affordable cells with consistent quality.

For Chery, the investment could strengthen product differentiation and reduce long-term dependence on dominant suppliers if the technology succeeds. A lighter, safer and longer-range battery would be especially valuable to an exporter selling vehicles across markets with different climates and charging networks. The financial risk is equally significant. Solid-state cells require expensive materials, precise production conditions and stable interfaces between solid components, while low yields could keep their cost per kilowatt-hour well above that of established lithium iron phosphate and conventional ternary batteries. Chery must therefore fund the programme while continuing to compete in an intense domestic price war that is already pressuring automakers’ margins.

The key milestone in 2027 will not simply be whether a prototype vehicle can operate with the battery. Investors and industry participants will need evidence on cycle life, charging performance, safety under repeated stress, pack-level energy density, production yield and cost. Chery’s announcement is an important signal that Chinese automakers are accelerating the transition from experimental cells to road testing, but the company is still several stages away from profitable mass production. For now, the 10 billion yuan commitment represents a strategic option on the next generation of EV technology rather than a guaranteed commercial breakthrough.