THE GLOBAL BATTERY RACE: WHO’S LEADING THE CHARGE?

The race in battery technology is entering a new stage, with solid-state batteries and other advanced energy storage solutions set to shape market leadership for years to come. Discover the innovations and strategies driving the future of energy storage.

As the LFP Chapter Closes, the Focus Shifts to Solid-State Batteries (SSB)

Over the past decade, Asian producers have firmly established their dominance in battery manufacturing, particularly in Lithium Iron Phosphate (LFP) technology. LFP cells gained widespread adoption thanks to a combination of safety, long cycle life, and cost-effectiveness. This technological and production lead effectively cemented Asia’s position in the global battery market, as Western manufacturers have struggled to compete on multiple fronts, from scale to supply chain capabilities.

For Western players, the opportunity to regain ground emerged with the development of solid-state batteries, often referred to as the ‘Holy Grail’ of energy storage solutions. Promising greater safety, energy density, and design flexibility, solid-state technology became the focus of a new global race. The first company to achieve mass production of quality solid-state cells will secure a substantial market advantage. Should Asian producers succeed first, they will extend and reinforce their leadership; if Western manufacturers take the lead, it could mark their re-entry into the market and potentially reshape the balance of power in the global energy storage sector.

Asia vs Rest of the World – Same Goal, Different Approaches

Contrasting strategies in solid-state batteries development.

A distinct divergence has emerged in the global pursuit of solid-state battery technology. Asian (mainly Chinese) manufacturers are primarily focused on advancing the electrolyte component itself, using silicon anodes (semi-solid-state technology) to enable rapid commercialization of SSB cells. This targeted approach allows Chinese companies to bring SSB products to market more quickly. However, the resulting cells offer performance parameters that are only marginally better – or, in some cases, even slightly inferior – to those of currently deployed solutions.

In contrast, European and American innovators are pursuing a more holistic strategy, simultaneously developing both the electrolyte and electrode materials (lithium-metal anodes). This comprehensive approach holds the promise of breakthrough advancements in battery performance. Nevertheless, it is accompanied by significant technological challenges, which are likely to delay the commercialization of Western solutions by at least two to three years.

The closest to succeed in commercialization of SSB among Western entities appears to be the French-Canadian company Blue Solutions, which has published promising A-Sample results of Gen4 SSB cells based on polymeric electrolyte, lithium anode, and various cathodes (LFP, LMFP, NMC). These cells offer notable volumetric density (>900 Wh/L – NMC and >600 Wh/L – LMFP) and gravimetric density (>450 Wh/kg – NMC and >350 Wh/kg), which are key differentiators required for EV mass adoption. Production is scheduled to begin in 2030, but a key question remains: will the life cycle meet the requirements? The current value (under 1,000 cycles) falls short of heavy-duty transportation needs. 

Other significant contenders include QuantumScape, Solid Power, Ampcera, and Factorial, each working on their own solutions.

While China’s strategy may secure a first-mover advantage in the SSB market, Western efforts are geared toward achieving transformative improvements that could redefine industry standards in the longer term. 

The Price of a Technology Change

Financial and strategic implications of SSB adoption.

According to P3, even after optimizing materials and manufacturing processes, SSB technology is expected to remain about 17% more expensive than conventional lithium-ion batteries (LIB) during its initial commercialization phase. The increased costs will affect not only the cells themselves, but also their integration into battery pack. 

In exchange for the higher cost, SSB technology delivers substantial benefits, including increased energy density, safety, and faster charging capabilities. These advantages position SSBs as a promising solution for applications where performance and efficiency are critical, namely, premium EVs, drones and other high performance applications.

Li-S & Na-ion –  Technological Bridge to the Future

Transitional chemistries paving the way for next-generation batteries.

Given the current challenges in semi-SSB and SSB development, pathways are being created to bridge the gap to these future technologies.

The first is the lithium-ion/sulfur (Li-S) cell, which could potentially compete with LFP and deliver a breakthrough in energy density. A Li-S battery cell, currently in development by PolyPlus, offers much higher gravimetric and volumetric energy density than LFP – potentially 2-3 times more energy per mass and volume. The expected cycle life of a Li-S cell may remain similar, around 3,000-5,000 cycles in theory. The difference? Substantially lower price of a cathode material LiOH (~$4-9/kg) compared with LFP (~$15-20/kg) and a self-discharge rate of zero under all conditions, while LFP typically loses 2-3% per month (20-25C) and less than 5% per month under normal storage conditions. Drawbacks include low voltage and narrow operating range (~1.9-2.5 V). Lifecycle performance remains unverified, though it may ultimately prove similar to that of LFP technology.

The second is the sodium-ion (Na-ion) cell, expected to reach series production in 2027 by the French startup, TIAMAT. Tiamat is developing Na-ion cells based on polyanionic cathode materials and graphite (or hard-carbon) anodes. The company claims their batteries offer advantages over traditional Li-ion systems, including lower raw material costs (sodium instead of lithium and no cobalt), faster charging capability, longer cycle life, and greater supply-chain independence.

Leading experts in the scientific community predict that sodium-based technology may form the basis of commercial solid-state batteries beyond 2030. According to Prof. Shirley Meng from Argonne Labs and University of Chicago, the next terawatt-hour of global battery production capacity will likely rely on sodium-based technology.

Ladies and Gentlemen, Place Your Bets!

The race for battery dominance is far from over.

As we look towards the next decade of battery innovation, solid-state technologies are primed to reshape the landscape. Until then we may witness Li-S pushing energy density boundaries and giving LFP run for its money, while sodium-based chemistries are under development – the race is on. Which technology will come out on top, and who will lead the charge? Have you placed your bets yet? 

Disclaimer:

The information and data presented on this blog are sourced from official materials and publications made publicly available by the organizations cited. While we strive for accuracy, IMPACT Intelligence does not guarantee the completeness, reliability, or correctness of the information and is not responsible for any decisions made based on the content of this blog.