Ganfeng Lithium Group, a major producer of lithium metal, signed a cooperation agreement in 2021 with the government of Chongqing’s Liangjiang New Area to build a battery production and research complex. The deal, backed by an initial investment of 5.4 billion yuan, targets the development and industrialization of semi-solid-state battery cells for electric vehicles. The project signals a significant bet by one of China’s most influential lithium companies on next-generation battery chemistry as automakers globally look for alternatives to conventional lithium-ion packs.
Ganfeng’s 5.4 Billion Yuan Bet on Battery Production
The cooperation agreement calls for the construction of the Ganfeng New Cell Technology Industrial Park within the Liangjiang New Area, a national-level development zone in Chongqing. Alongside the industrial park, the deal includes the creation of an advanced cell research institute, giving Ganfeng a dedicated facility to push semi-solid-state technology from laboratory prototypes toward volume manufacturing. The initial investment of 5.4 billion yuan is positioned as a major commitment to solid-state-adjacent battery development, reflecting Ganfeng’s view that semi-solid-state cells could be scaled commercially.
Ganfeng is not a newcomer to the lithium supply chain. The company already operates across lithium extraction, refining, and recycling, supplying raw material to battery makers and automakers around the world. By moving downstream into finished cell production, Ganfeng is positioning itself to capture value across more of the EV battery pipeline, from materials to cells. That kind of vertical integration can, in theory, improve cost control compared with pure-play cell manufacturers, particularly when raw lithium prices are volatile.
Why Semi-Solid-State Cells Matter for EVs
Semi-solid-state batteries sit between today’s liquid-electrolyte lithium-ion cells and the fully solid-state batteries that researchers have pursued for decades. The technology replaces part of the liquid electrolyte with a gel or solid material, which is often intended to improve energy density and may help reduce the risk of thermal runaway, the chain reaction behind many battery fires. For EV buyers, higher energy density translates to longer driving range per kilogram of battery weight, a direct answer to one of the most persistent consumer complaints about electric cars.
The trade-off is manufacturing complexity. Fully solid-state cells have proven difficult to produce at scale because solid electrolytes are brittle and hard to bond with electrode materials. Semi-solid-state designs sidestep some of those problems by retaining a small amount of liquid or gel, making them more compatible with existing production equipment. That pragmatic middle ground is exactly what makes Ganfeng’s approach worth watching: rather than waiting for a perfect all-solid battery, the company is betting on a technology that can ship sooner while still delivering meaningful performance gains over conventional cells.
Chongqing’s Role in China’s Battery Corridor
The choice of Chongqing’s Liangjiang New Area as the site for this project is deliberate. The zone already hosts automotive and electronics manufacturers, providing a ready-made supplier ecosystem and a skilled labor pool. Local authorities have actively courted battery and EV investments as part of a broader push to turn western China into a manufacturing hub that rivals the coastal provinces. The cooperation agreement, documented by the Chongqing Liangjiang New Area government, fits that regional ambition and underscores how local policymakers are using large anchor projects to catalyze supporting industries from materials to logistics.
Chongqing’s inland location can offer logistical advantages for reaching domestic markets via rail and river freight. With Chinese EV sales growing rapidly, locating a new battery plant in the country’s interior reduces shipping distances to assembly plants operated by automakers such as Changan, which is headquartered in Chongqing. For Ganfeng, the arrangement could mean shorter supply lines to the finished cell factory, potentially trimming costs and lead times. It also positions the company to serve emerging EV production clusters in neighboring provinces, reinforcing Chongqing’s role as a transport and manufacturing hub for central and western China.
Competitive Pressure on Western Battery Makers
Ganfeng’s move into semi-solid-state cell production adds another layer of competitive pressure on battery developers outside China. Companies like QuantumScape in the United States and Toyota in Japan have invested heavily in solid-state research, but neither has reached mass production. If Ganfeng can scale semi-solid-state cells ahead of full solid-state breakthroughs elsewhere, it could strengthen Chinese manufacturers’ position in supply negotiations with automakers and influence industry pricing and standards. That dynamic would echo earlier phases of the EV transition, when Chinese firms leveraged scale and policy support to dominate lithium iron phosphate cathodes and mid-range battery packs.
The broader pattern is clear: China’s battery industry is not waiting for theoretical perfection. Instead, companies are commercializing incremental improvements, from lithium iron phosphate chemistry to cell-to-pack architecture, and now semi-solid-state electrolytes. Each step widens the manufacturing experience gap between Chinese producers and their international counterparts. Western governments have responded with subsidies and domestic content requirements, but building factory capacity and training workforces takes years. Ganfeng’s 5.4 billion yuan investment is a reminder that the race is measured in deployed production lines, not published research papers, and that early movers in manufacturable technologies can shape global standards even if their chemistry is not the most advanced on paper.
What the Research Institute Signals
The inclusion of an advanced cell research institute in the agreement is not a minor detail. Dedicated R&D facilities attached to production sites allow engineers to iterate on cell designs and immediately test changes on real manufacturing lines, a feedback loop that accelerates development timelines. For Ganfeng, the institute could serve as a proving ground for technologies beyond semi-solid-state cells, including future work on lithium metal anodes and sulfide-based solid electrolytes that remain in earlier stages of development. By embedding researchers alongside production engineers, the company can refine manufacturing processes, improve yields, and shorten the lag between laboratory breakthroughs and commercial products.
One assumption worth questioning in much of the current coverage is that semi-solid-state and solid-state batteries will inevitably replace conventional lithium-ion cells across the board. The reality is more conditional. Semi-solid-state technology may prove best suited for premium or long-range vehicles where buyers will pay a price premium for extra range and improved safety. For mass-market EVs, the cost advantages of mature lithium iron phosphate cells could keep conventional chemistry dominant for years. Ganfeng’s strategy appears to hedge against that uncertainty by maintaining its upstream lithium supply business while building out downstream cell manufacturing, ensuring revenue regardless of which chemistry wins in each market segment. The Chongqing research institute strengthens that hedge by giving the company a platform to pivot as new chemistries mature, making this project not just a factory build-out, but a long-term bet on innovation within China’s evolving battery corridor.
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*This article was researched with the help of AI, with human editors creating the final content.
