China’s leading electric vehicle (EV) battery manufacturers have begun transporting batteries to their domestic customers by rail using specially designed containers, as they look to cut transportation costs amid rising demand, according to the state news agency Xinhua. So far, EV batteries in China have mostly been transported by truck due to safety concerns.

Contemporary Amperex Technology Company Limited (CATL), BYD and other battery manufacturers began transporting lithium-ion batteries by rail this week as part of a pilot program supported by the Chinese government, potentially paving the way for much wider use of rail services for both domestic and international battery transportation.

CATL's pilot rail routes are between the cities of Guiyang and Shanghai and Yibin and Shanghai, while BYD began shipments between Chongqing and Beibu. Ultimagtely, these companies are aiming to transport EV batteries to customers in Europe by rail, using the China-Europe Railway Express route, rather than by sea. This would also reduce delivery times to most European destinations to around 20 days—compared with 45 days by ocean-going ship.

Xinhua described the development as a “major step forward in the transportation of these vehicle batteries.” Lithium batteries are considered hazardous goods because of the risk of explosion and fire. Rail transport is also expected to lead to lower transportation emissions and costs, as well as shorter delivery times.