SSBs emerge as a compelling alternative to traditional lithium-ion batteries as the race between automakers and battery manufacturers to achieve mass commercialization intensifies.
The rapid advancement of electric vehicle (EV) technology has brought solid-state batteries (SSBs) to the forefront as a game-changing innovation. Unlike conventional lithium-ion (Li-ion) batteries, SSBs replace liquid electrolytes with solid materials, promising superior energy density, faster charging times, and enhanced safety. While commercially viable in small-scale applications such as pacemakers and wearable devices, SSBs for large-scale EV applications remain in development. However, growing investments, strategic partnerships, and material breakthroughs are highlighting the push toward mass commercialization.
Strategic Partnerships Emerge as a Cornerstone of Innovation
The SSB market is poised for significant expansion, driven by increased R&D investments, evolving battery chemistries, and government incentives promoting sustainable energy solutions. Industry players are collaborating to overcome technological barriers, with a focus on improving battery longevity, optimizing thermal management, and scaling up production. Major automakers, including Toyota, Volkswagen, BMW, and Hyundai, are spearheading development efforts, investing in joint ventures to accelerate breakthroughs in energy density and manufacturing efficiency.
Strategic partnerships have emerged as a cornerstone of SSB innovation. Toyota and Panasonic are leveraging AI and data analytics to enhance EV battery performance and distribution networks, while Volkswagen and QuantumScape are refining battery composition for improved efficiency and safety. BMW, Ford, and Solid Power have invested $130 million to advance SSB research, aiming to achieve commercial viability by the end of the decade. Additionally, Hyundai’s collaboration with Factorial Energy is focused on extending battery life and achieving a thousand-charge cycle benchmark, while Toyota and Idemitsu are targeting the commercialization of advanced SSBs capable of delivering a 1,200-kilometer range with rapid, 10-minute charging.
Frost & Sullivan projects the global SSB market to reach $257.2 billion by 2030. This expansion will be fueled by increasing demand for high-performance batteries across the EV, consumer electronics, and renewable energy storage sectors. Advances in material science and streamlined production processes are expected to drive costs down, making SSBs a more compelling alternative to traditional Li-ion batteries.
To learn more: Growth Opportunities in Solid-state Batteries in Electric Vehicles, 2024‒2030, Evolution of EV Batteries by Cell Type (Prismatic, Pouch, Cylindrical), Forecast to 2030, or contact sathyanarayanak@frost.com for information on a private briefing.
The Race towards Mass Commercialization is Intensifying
The race to commercialize SSBs has intensified as automakers and battery manufacturers vie for technological leadership. More than eight major OEMs, alongside 15 battery manufacturers and numerous start-ups, are dedicated to refining future battery chemistries.
Leading regions in SSB development include Europe, China, Japan, and South Korea, with Germany emerging as a key player in the European market. Government policies supporting sustainable energy and manufacturing incentives are further reinforcing regional competition, promoting the establishment of high-capacity production hubs.
Legacy automakers and disruptive start-ups alike recognize the strategic importance of SSBs. Volkswagen aims to introduce SSB-powered flagship models by 2025, while Toyota plans to integrate next-generation SSBs into its bZ4X EV lineup. BMW, backed by its investment in Solid Power, is set to incorporate SSBs by 2026, with Nissan following suit in 2028 for mass-market EVs. Hyundai’s Factorial Electrolyte System Technology is expected to be operational by 2030. While most major OEMs, including Daimler, Stellantis, and Renault-Nissan-Mitsubishi (RNM), are exploring lithium-sulfur and solid-state chemistries, Tesla remains focused on lithium-air battery development.
Despite promising advancements, challenges persist. High production costs and scalability concerns remain key obstacles to widespread adoption. The cost of SSB manufacturing, largely driven by expensive shell materials and complex production techniques, still needs to be reduced to achieve cost parity with Li-ion batteries. Moreover, regulatory frameworks will need to evolve to establish standardized protocols for thermal management, charge-discharge cycles, and safety measures, ensuring interoperability across global markets.
Our Perspective
SSB technology looks set to transform EV energy storage, offering substantial improvements in energy density, safety, and durability over existing Li-ion alternatives. However, the transition from development to mass adoption will hinge on overcoming key technological and economic barriers. Investments in material innovation, particularly in solid electrolytes and electrode interfaces, will be essential to addressing performance limitations and enhancing battery longevity.
Furthermore, manufacturing scale-up will be crucial to promoting SSB adoption. Rising demand will highlight the need for expanded manufacturing capabilities. This, in turn, will underscore the necessity for collaborations between automakers, battery suppliers, and technology firms. Companies like Toyota, Volkswagen, and BMW are already forging partnerships to address technical challenges and streamline large-scale production. As manufacturing processes become more efficient, economies of scale will enable lower costs, making SSBs a more viable commercial option.
Regulatory alignment will also play a crucial role in facilitating widespread adoption. Governments and industry stakeholders will need to establish harmonized safety and performance standards to support global market integration. This will include developing rigorous testing protocols to prevent thermal runaway risks and ensuring compliance with stringent environmental and safety regulations.
While challenges remain, the long-term outlook for SSBs is highly promising. As breakthroughs in material science and cost reduction strategies unfold, SSBs are well-positioned to transform the EV space.
With inputs from Amrita Shetty, Senior Manager, Communications & Content – Mobility
