The solid-state battery (SSB) industry is undergoing a transformative phase, driven by technological advancements and increasing demand across diverse applications. With breakthroughs in safety and energy density, SSBs are projected to reach a market value of US$9 billion by 2035. The IDTechEx report for 2025-2035, “Solid-State and Polymer Batteries 2025-2035: Technology, Forecasts, Players”, provides a comprehensive analysis of this dynamic sector, exploring the interplay between cutting-edge technologies, market trends, manufacturing challenges, and the global ecosystem surrounding SSBs.
Scaling Up: Factory developments
Recent developments in factory construction highlight progress toward mass production of SSBs. For instance, Blue Solutions has already started mass production of their polymer-based SSBs for a decade, the company also announced plans to construct a gigafactory in Alsace, France, with an anticipated annual production capacity of 25 GWh by 2030 – enough to power approximately 250,000 electric vehicles annually. The Taiwanese SSB player, ProLogium Technology, inaugurated the world’s first giga-scale SSB factory in Taoyuan, Taiwan, with an initial capacity of 2 GWh, primarily producing high-silicon anode SSBs for Electric Vehicles (EVs) and serves as a foundation for scaling up global production. ProLogium is also progressing on its €5.2 billion gigafactory project in Dunkirk, France. Construction is expected to begin by late 2024 or early 2025, with mass production slated for 2027, aiming to achieve a capacity of up to 48 GWh annually. Other companies also announced plans for Gigafactories dedicated to SSB manufacturing – an essential step toward meeting future demand at scale. These facilities aim not only to produce high-quality batteries but also to refine production methods that ensure cost efficiency without compromising performance.
Solid-State Batteries: A revolution or just hype?
With much exciting news, SSBs have captured widespread attention for their promise of high energy density, enhanced safety, and flexible designs. Reports suggest that some SSBs can achieve rapid charging and potentially lower manufacturing costs due to higher energy density and economies of scale. These attributes have led many to herald SSBs as the "holy grail" of next-generation batteries. However, the journey toward full commercialization has been slow. Many so-called commercialized SSBs are actually semi-solid, relying on liquid electrolytes. Furthermore, some SSBs fail to deliver significant improvements in energy density compared to advanced liquid-electrolyte-based lithium-ion batteries.
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Meanwhile, traditional lithium-ion batteries continue to evolve, offering enhanced performance and cost efficiency. This has led some experts to question whether SSBs are overhyped and whether resources would be better allocated toward refining mature lithium-ion technologies with established manufacturing infrastructures and supply chains. IDTechEx's analysis identifies improved safety as the most compelling value proposition of SSBs, followed by potential gains in energy density. However, achieving higher energy density often requires adopting new electrode materials, particularly for the anode. This shift introduces challenges such as the need for specialized manufacturing facilities and the development of new supply chains.
Reshaping global supply chains
The commercialization of SSBs is expected to significantly impact global supply chains. Historically, lithium-ion battery production has been dominated by East Asian countries like Japan, China, and South Korea. However, Europe and North America are increasingly entering the race, aiming to localize battery production closer to application markets. The adoption of new materials such as lithium metal anodes, silicon anodes, and solid-state electrolytes signals a potential reshuffling of the battery supply chain.
This shift is not merely technological but also strategic. Governments worldwide are supporting initiatives to establish regional manufacturing hubs and reduce reliance on existing supply chains. These changes present opportunities across various sectors, including materials development, component design, manufacturing methods, and technical expertise. The global competition underscores the importance of solid-state batteries as a cornerstone of next-generation energy storage solutions.
Electric vehicles lead the charge
Electric vehicles (EVs) remain the primary focus for solid-state battery (SSB) development due to their immense market potential. Automotive original equipment manufacturers (OEMs) are heavily investing in or co-developing SSB technologies through joint ventures and collaborations. EV applications are particularly attractive because automotive OEMs can provide substantial funding and are less sensitive to cost compared to consumer electronics markets.
However, not all SSB technologies are immediately suitable for EV applications. Batteries with limited capacity or power often target niche markets instead. These niche applications include small Internet of Things (IoT) sensors that operate in harsh environments requiring extreme temperature resistance and long lifespans. For example, IoT sensors deployed in industrial monitoring or remote environmental tracking demand compact, durable energy solutions capable of withstanding wide temperature ranges, making them ideal candidates for certain SSB technologies.
Meanwhile, drones and robotics have emerged as significant target markets for SSBs, particularly in recent years. These sectors require high energy density and exceptional safety features, both of which align well with the advantages of SSBs. Drones benefit from lightweight designs that enable extended flight times, while robotics applications demand compact, reliable power sources to support advanced functionalities. These markets also represent a growing focus for SSB developers due to their comparatively easier entry points and alignment with the performance attributes of solid-state technology.
From Cells to Systems: A shift in focus
The transition from laboratory-scale research to commercial-scale production has shifted industry priorities from individual cell development to system-level integration. Manufacturers are now focusing on optimizing battery packs and systems for large-scale applications like EVs and grid storage. This includes refining Battery Management Systems (BMS) for enhanced safety and efficiency as well as designing structures that ensure mechanical optimization.
System-level considerations are crucial for meeting the complex demands of large-scale applications. By prioritizing these aspects, manufacturers aim to deliver solutions that enhance overall performance while addressing safety concerns – a critical factor for industries like transportation and renewable energy storage.
Overcoming cost and scalability challenges
Cost reduction and scalability remain significant hurdles as production expands. Efforts are underway to streamline manufacturing processes while maintaining performance standards at reduced costs. Additionally, issues like cell pressure management—which directly impacts battery longevity and safety – are receiving increased attention from researchers and manufacturers alike.
These advancements reflect the industry's commitment to overcoming technical and economic barriers in order to enable widespread adoption of advanced battery technologies. For example, companies like Blue Solutions have been manufacturing polymer-based SSBs for over a decade, showcasing long-term commitment despite challenges.
Insights from IDTechEx Research
IDTechEx's report “Solid-State and Polymer Batteries 2025-2035: Technology, Forecasts, Players” offers valuable insights into this evolving field. Covering topics such as technology benchmarking, market forecasts, player activity tracking, supply chain analysis, regulatory considerations, and recycling strategies, it serves as a comprehensive resource for understanding the opportunities and challenges associated with solid-state battery R&D and commercialization.
For more detailed information on market dynamics, technological advancements, key players, and emerging opportunities in this rapidly evolving sector, IDTechEx's report provides essential guidance tailored for industry stakeholders seeking a competitive edge in this transformative industry.
