Solid state batteries are considered as the next generation battery technology beyond lithium ion batteries. They use solid electrodes and solid electrolytes, instead of the liquid electrolyte in traditional lithium ion batteries. This makes them safer, more stable, with higher energy density and faster charging capabilities. As electric vehicles (EVs) are booming globally, major automakers like Toyota, Volkswagen and Hyundai, as well as tech giants like Samsung and QuantumScape, are making huge investments in R&D and factory construction for solid state batteries. However, there are still significant technical barriers to overcome before mass production.
Solid state batteries have clear advantages over traditional lithium ion batteries
Compared to lithium ion batteries used nowadays, solid state batteries are superior in several aspects:
1. Much safer: With solid components instead of flammable liquid electrolyte, the risk of catching fire or even exploding is greatly reduced. This makes consumers feel more assured when using electronics or driving EVs equipped with solid state batteries.
2. More stable: The dendrite growth issue troubling lithium ion batteries is well addressed with the adoption of solid electrolyte, improving the battery’s lifespan and stability.
3. Higher energy density: Companies like QuantumScape have already achieved energy density levels comparable to fuel cells, almost doubling that of standard lithium ion batteries. This means EVs can drive much longer distances under the same battery weight.
4. Faster charging: Solid electrolyte enables faster transfers and reactions of ions between electrodes. Toyota targets a 10-minutes charge for its solid state EV batteries, whereas even fast-charging a lithium ion battery still takes about half an hour.
Automakers and tech firms are racing to be the first to commercialize solid state batteries
As a revolutionary battery technology well-suited for the fast growing EV industry, major players spared no efforts in the R&D and manufacturing of solid state batteries.
Toyota, which always stresses safety and reliability, plans to unveil a demo car with solid state batteries as early as 2025. From a conservative standpoint Toyota still emphasizes uncertainties ahead, while its technology executives demonstrate full confidence behind the scenes.
Volkswagen revealed this March that it’s building a pilot production line for solid state batteries in Germany, partnering with QuantumScape, a Silicon Valley startup backed by Volkswagen and Bill Gates. Though a niche player, QuantumScape astonishingly filed more patents related to solid state electrolytes than any other company.
Besides leadership in quantity, Japanese companies also lead in the diversity of materials and approaches used in solid state batteries. For example, the solid electrolyte developed by John Goodenough’s team is made mainly of glass and ceramics. It is said to enable three times higher energy density than traditional lithium ion batteries.
While Chinese battery giants like CATL and BYD focus more on refining lithium ion batteries to maintain advantage in cost and production capacity, they monitor the solid state landscape closely, being ready to catch up.
In general, it’s reasonable to expect the commercialization of solid state batteries around 2025, when promising startups exit from pilot production phase. However, the current technology iteration speed is beyond imagination, making it possible to see surprises earlier.
Mass production of solid state batteries faces constraints from technical difficulties and uncommon materials
Despite attractive merits like higher safety and energy density, there are still quite some challenges holding back large scale manufacture of solid state batteries:
1. Ensuring full contact between electrodes and solid electrolyte has proven extremely tricky so far. Even the slightest gaps can lead to severe performance downgrade. Companies are working hard to improve interface build quality.
2. Materials used for solid electrolytes often react with moisture and require unusual production environments like argon filled dry rooms. This complicates factory design and also risks driving up future costs.
3. The prototype manufacturing processes explored so far seem unlikely to scale up cost-effectively, though Toyota and QuantumScape expressed confidence here. New methodologies may very likely be needed for mass production.
4. Many solid electrolyte materials or battery components are rare and unavailable abundantly on earth, such as lithium, which again adds cost pressure as demand rises in the long term. Recycling and reuse will be crucial for sustainability.
In general industry consensus sees solid state batteries prevailing gradually through the entire 2020s decade, whereas lithium ion batteries will also keep evolving then.
Practical suggestions for investors on the solid state battery sector
For retail investors like us interested in the solid state battery sector, these suggestions may offer some help before jumping in:
1. Closely track tech updates from leading battery and automakers like Toyota, Volkswagen, CATL to identify real progress made. Don’t fully buy into hype before evidence of production maturity.
2. Pay attention to the formulation and refinement of government policies incentivizing R&D and factory buildup for advanced battery technologies like solid state ones. This signals strong future demand.
3. Consider finished vehicle makers instead of niche material/component suppliers. End product assemblers reap the most profits. Supply chains experience more volatility during technology shifts.
4. Seek third party expert opinions to detect overly optimistic claims from some startups. Evaluate the feasibility of their roadmaps objectively. Prepare for delays or failure.
5. Maintain reasonable investment share in visionary startups like QuantumScape for portfolio growth rather than short term return. But monitor closely and adjust position promptly with business changes.
In summary, investing in the emerging solid state battery field now means both great potential and fierce competition. It is key for investors to identify companies making real technological breakthroughs, balance risks and prospective returns, and review positions periodically when situations evolve.