The Battery of the Future – Electric Vehicles Need the Solid-state Battery

July 2024

Identity & Security

Thomas Wilson

Senior Research Analyst

Solid-state batteries very much represent the future of EVs (Electric Vehicles), as they provide answers to many of the problems raised by both current EV owners, and those who have yet to make the transition from ICE (Internal Combustion Engine) vehicles. This transition is something consumers will need to start planning for, as the impending bans on the sale of new ICE vehicles will come into effect within the next decade for most countries. 

A solid-state battery differs from a typical lithium-ion battery, as it uses a solid electrolyte instead of a liquid or gel electrolyte for its conductions between electrodes. Some advantages that solid-state batteries have over lithium-ion batteries include:

• Lighter weight: A typical 80 kWh lithium-ion battery weighs approximately 450 kg, whereas a solid-state battery of the same capacity weighs roughly 150 kg.
• Greater safety: Solid-state batteries possess a higher thermal stability compared to lithium-ion batteries, which employ a volatile liquid electrolyte that can become unstable at very high temperatures.
• Faster charging times: A solid-state battery can charge up to 80% capacity in as little as 10 15 minutes, compared to a lithium-ion battery taking anywhere between 20 minutes to 12 hours, depending on its capacity.

Source: Juniper Research

The Race to Commercialisation

The solid-state battery is still very much in its infancy when it comes to mass production, however it illustrates the next step in EV development for many vehicle manufacturers and OEMs (Original Equipment Manufacturers). Toyota claims to have made a breakthrough in recent times regarding the durability of these batteries, meaning that the company is now ramping up its efforts to introduce them to the market as early as 2027/2028. Furthermore, Honda has quietly cited 2028/2029 for its own units to enter the market. As such, many other companies are now investing more time and resources into researching and developing solid state batteries of their own in order to keep up with trends in the market.

Cementing oneself as a primary supplier of solid-state batteries represents a critical position in the market for OEMs and battery manufacturers. The demand for this battery type is expected to soar once they reach market maturity, and in the near future, most brand-new EV models are anticipated to roll out of the showrooms equipped with some form of solid-state battery powering it.

Vehicle manufacturers view solid-state batteries as a major leap in the development of the EV market, as they are expected to alleviate many of the barriers noted by would-be adopters. The deployment of these batteries in new EVs is expected to result in a spike in EV adoption, as vehicle ranges increase and charging times fall. As a result, companies are wise to invest in this area in order to gain access to customers which have not been available to them as of yet.

EV Adoption Set to Accelerate in 2028

According to our latest research on EV Charging and Batteries, the introduction of solid-state batteries to the market is expected to result in annual EV battery hardware revenue growing by 30.3% from 2027 to 2028, up from 22.8% between 2026 and 2027. This jump in revenue illustrates how the first instances of new EVs being equipped with solid-state batteries are expected to reflect an increased demand for brand-new EV models, resulting in more batteries being manufactured. 

The significance of these figures is further highlighted by the fact that solid-state batteries will become cheaper to produce once they reach market maturity, as there are fewer materials involved in this process. This will also aid in reducing the carbon footprint of the battery manufacturing process. This is important when considering the underlying aim of increasing EV adoption is to reduce global emissions and create a sustainable future. 

With this emerging technology looking to enter the market in the near future, EV adoption has never painted a brighter picture, with many issues raised by doubters finding a solution within solid-state batteries. This battery type is expected to greatly accelerate the transition to EVs and are due to arrive just in time for the impending new ICE vehicle bans.