(Yicai) Dec. 13 -- Sunwoda Electronic and XTC New Energy Materials, two Chinese producers of batteries and battery materials, have joined forces to develop solid-state batteries, an emerging alternative to traditional lithium-ion batteries.

The pair aim to combine their technological strengths to jointly develop cathode and electrolyte materials, as well as battery products, and promote their production, they announced in separate statements yesterday without disclosing any investment or project schedule details.

Solid-state batteries use solid electrolytes instead of liquid electrolytes, offering potential advantages over lithium-ion batteries in terms of safety and performance. This cutting-edge technology is attracting significant levels of investment as they hold out the promise of enhancing the capabilities of electric vehicles.

Sunwoda and XTC will first develop cathode materials with high energy density, enhanced safety, and extended life cycles, along with battery electrolytes offering superior electrical conductivity, stability, and cost efficiency. These materials will then be used to produce solid-state batteries, along with additional battery components.

Sunwoda’s shares [SHE: 300207] fell 2 percent to close at CNY23.17 (USD3.19) in Shenzhen today, while XTC [SHA: 688778] sank 4.7 percent CNY50.59 (USD6.95) in Shanghai. Shenzhen's ChiNext index retreated 2.5 percent and Shanghai's Star 50 lost 2.1 percent.

Editor: Emmi Laine