The news agency Xinhua said the start-up Qing Tao Energy Development was led by Nan Cewen, a member of the Chinese Academy of Sciences, who had invested a billion yuan (about A$198 million) in the project.
Each of the batteries produced will have an energy density of more than 400 Wh/kg.
Last year, as iTWire reported, the co-inventor of the lithium-ion batter, John Goodenough, announced he had invented a new solid-state battery that could be brought to market in three years.
Qing Tao has contracted with some automobile manufacturers to produce batteries for electric vehicles by 2020 by which time production is projected to hit 0.7GWh.
Xinhua said Nan and a number of doctoral candidates from Tsinghua University had set up the company in 2014.
Nan said companies like Toyota, Dyson and Volkswagen were looking to use solid-state batteries in automobiles.
"Getting rid of liquid electrolytes can ensure the battery is not flammable or combustible and can even be produced in flexible packs," Nan said.