China and the Solid-State Batteries Race: Toyota, Patents and Europe

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 electric cars sold across the world.

According to the International Energy Agency, in 2025 China accounted for more than 80% of global battery cell production, and it also led the manufacture of the active materials used in batteries for electric vehicles.

That dominance runs through giants such as CATL, BYD and CALB, as well as a vast industrial network and a domestic market on a huge scale. Even so, the latest warning coming from within China itself is narrower: the country may keep its edge in mass battery manufacturing, yet risk giving up some technological leadership in the development of solid-state batteries.

A report cited by the Chinese press argues that, despite leading in scientific output and in the number of patents, China may not be able to dominate solid-state battery production in the same way. The logic is tied to the nature of the technology: solid-state is not simply the next step of today’s battery. It is a different race, involving different materials, new industrial processes and a far more intense battle 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 shift can deliver higher energy density, improved thermal safety, faster charging and more compact packs - exactly what the automotive industry wants in order to make electric cars more compelling.

In reality, however, it is a headache. The technology remains hard to industrialise, with hurdles ranging from material-interface stability and longevity to dendrite formation, the moisture sensitivity of certain electrolytes, the cost of materials and the ability to manufacture 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.

In short, producing millions of LFP (Lithium Iron Phosphate) or NMC (Nickel, Manganese and Cobalt) lithium-ion cells with high industrial efficiency is one thing. Mastering a technology that is still moving out of the prototype phase - and that depends on entirely different chemical interfaces and manufacturing methods - is quite another. China’s scale is still a major advantage, but in this contest it may not be enough on its own.

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. Those figures show strength, but they do not tell the whole story.

When the focus shifts to where the most influential patents sit, the picture changes. Among the world’s 30 leading entities for patents in solid-state batteries and electrolytes, there are 17 Japanese, seven Chinese, five South Korean and only one European. In the Top 10, there is no Chinese entity.

This does not mean Chinese companies will be shut out. They can create their own approaches, design around patents using alternative processes, license technology or challenge existing filings. Even so, intellectual property becomes increasingly decisive as a technology moves from the lab into global supply agreements with car manufacturers.

Toyota’s moment?

In this setting, Toyota is the name to watch most closely. The Japanese brand has been working on solid-state batteries for years and has strengthened partnerships in materials - one of the key levers for turning the promise into 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 plant in Japan scheduled for June 2027. According to Reuters, the investment is expected to be about 21.3 billion yen (around 114.9 million euros 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 in the race. The Korean advantage lies in accumulated industrial experience with high energy-density cells and close ties to global carmakers.

Europe will remain dependent

For Europe, this potential reshuffle is uncomfortable. Europe’s automotive industry already relies heavily on Asia for batteries and has not yet turned its 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 worldwide are supplied by companies headquartered in China, South Korea or Japan. In addition, the number of Chinese producers in the European Union has nearly doubled since 2023. If China keeps the upper hand in high-volume batteries while Japan and South Korea gain ground in solid-state, Europe’s strategic room for manoeuvre will remain constrained, regardless of the industrial plans Brussels can mobilise.