PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1461235
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1461235
Global EV solid-state battery market is projected to witness a CAGR of 25.2% during the forecast period 2024-2031, growing from USD 201.32 million in 2023 to USD 1215.41 million in 2031. The adoption of electric, hybrid, and fuel-cell vehicles has increased in the last five years. The increasing prices of fossil fuel, rising vehicular emissions, government initiatives for EV adoption, and higher compliance policies for ICE vehicles drive the EV solid-state battery market growth. Furthermore, battery technology is constantly transforming with the addition of more efficient elements. The solid-state battery is likely to be the dominant future battery technology for electric and hybrid vehicles. The solid-state battery has a solid lithium metal anode and ceramic electrolyte, acting as a perpetrator. Instead of a liquid medium, ions flow through a solid medium, increasing the safety of the vehicle with no chemicals onboard. The solid-state battery's anode holds a smaller volume, delivering more energy through the smaller battery. The elimination of the separator reduces battery size, making solid-state batteries suitable for heavy trucks and short-haul aircraft.
The integration of advanced technologies such as artificial intelligence, machine learning, and sensory technology has made EV battery operations smart. It includes real-time monitoring of road conditions, power dynamics, and efficiency. Additionally, government support through incentives, loans, and grants to EV manufacturers and battery vendors also propel the market expansion. The automakers will likely adopt the solid-state battery concept on a large scale.
For instance, in January 2024, Toyota Motor Corporation announced that it will introduce a couple of vehicles comprising solid-state batteries with higher range. The company states that the batteries will charge in 10 minutes and would have a range of 1200 km. In October 2023, the company partnered with Idemitsu Kosan to mass develop and manufacture all-solid-state batteries. Both companies are planning to commercialize future batteries in 2027-28.
Proliferated EV Sales and Developed Battery Management Technology for fuel Market Expansion
The increased demand for EVs with reduced charging time and long-shelf battery life is expected to fuel the market growth. Emerging economies such as India and China are launching initiatives that advance EV adoption and manufacturing, driving the sales of solid-state batteries in the region. Furthermore, integrating advanced battery management systems for battery health monitoring helps end-users understand thermal management, capability estimation, state of charge, and other factors. These systems safeguard users and batteries through cell operation monitoring. While major EV solid-state batteries are either in the production phase or the testing procedure, some major automakers have started launching new EVs with solid-state batteries, expanding the solid-state market size.
For instance, in February 2024, IM Motors announced the launch of IM L6 in May 2024. The new car has dimensions of 4931/1960/1474 mm in length, breadth, and height, and a wheelbase of 2950 mm. The rear-wheel drive variant weighs 2040 kg, while the all-wheel drive performance version weighs 2250 kg. A 250 kW electric motor powers the rear-wheel drive vehicle, whereas performance models add a 200 kW motor to the front axle and replace the 250 kW motor with a 379 kW motor.
Lightweight, Ability to Cast in Shapes, and Fast-Charging to Fuel Market Growth
The upsurge of EVs, hybrid, and fuel cell vehicles has led end users to look for technologically advanced vehicles that also lead to power dynamics. The solid-state batteries consist of lithium which is the lightest metal element and hence delivers higher power in small weight and size. Solid-state batteries can also easily be cast in any shape, giving an edge to automotive designers. EV batteries must grow gradually along with the vehicle. The emphasis is shifting from exhausts to other sources of pollution like tire particles, as indicated by this increase in weight.
Electric vehicles' lithium-ion batteries usually take twenty minutes to twelve hours to recharge fully. Solid-state batteries could only take ten or fifteen minutes to reach at least 80% charge. their ability to get charged more frequently delivers a five times longer lifespan than lithium-ion batteries.
For instance, in January 2024, Harvard researchers achieved a technological breakthrough regarding solid-state batteries. The battery can be charged in 10 minutes and charged and drained at least 6,000 times.
Government Push for EV Adoption along with Production Incentives to Fuel Industrial Growth
The government plays a crucial role in the market's growth as it pushes EV adoption through initiatives, subsidies, and incentives. Governments worldwide focus on EVs and hybrids to limit vehicular emissions while also funding companies working on advanced battery technology. Apart from the EV subsidies, production-related grants and incentives motivate battery manufacturers to take additional steps in developing advanced battery technology. For instance, in October 2023, the Government of India announced that it is going to launch another production-linked incentive (PLI) scheme for batteries that concern EVs. The step is likely to help manufacturers develop the latest battery technology while reducing the battery price and limiting the EV prices as well.
Another example of government funding EV battery companies involves the United States government. In January 2023, Solid Power, a developer of solid-state batteries, received funding from Rally to aid in expanding its EV cells devoid of nickel and cobalt. The United States Department of Energy revealed that Solid Power will get over USD 5 million to support its technology development, which can reduce the cost of EV batteries.
Higher Range, Fast-Charging, and Increased Shelf Life to Fuel the Segmental Growth
Based on propulsion, the battery electric vehicle holds the major share. While hybrid vehicles have two sources for the power supply, battery electric vehicles require ultimate power, faster charging support, and increased shelf life. Without these attributes, battery-electric vehicles cannot function properly. BEVs majorly consume solid-state batteries with advanced vehicle designs and new market players. Furthermore, the end-users prefer battery electric vehicles due to their high performance and longer shelf life. The solid-state batteries are likely to be under mass production due to the increased demand for BEVs with higher ranges.
For instance, in December 2023, NIO Inc. (NIO), a Chinese EV maker, effectively built a battery with a 1,000 km (621 mi) range. In April 2024, the business intends to mass-produce 150 kWh batteries.
Asia-Pacific Region Leads in Global EV Solid-state Battery Market
As an emerging automotive market with a higher EV adoption rate and implementation of advanced technologies, the Asia-Pacific region holds the major portion of the market. Major regional automakers are also adopting solid-state batteries with a higher performance range. Companies such as BYD, CATL, Mahindra, Tata, and Hyundai are adopting the latest battery technology to lead the EV manufacturing and technology race. The expanded battery manufacturing line and the battery technology innovation are expected to build the base for solid-state batteries in the region. The enhanced supply chain of raw materials such as lithium through exploration programs and advanced logistics is anticipated to help the region lead in the global market. Companies also help each other grow exponentially through collaborations and partnerships.
For instance, in February 2024, Beijing established the China All-Solid-State Battery Collaborative Innovation Platform (CASIP) to create a solid-state battery supply chain by 2030. CASIP unites government, academia, and industry, and includes competitors in EV batteries, CATL and BYD.
Future Market Scenario (2024-2031F)
Demand for high-range EVs with longer shelf lives is expected to gain traction for the EV solid-state battery during the forecast period.
The advanced battery management systems and technological advancements are anticipated to shape the market dynamics.
New companies investing in battery technology and automakers extending their R&D facilities are projected to expand the market space.
Government projects and initiatives to promote EV adoption and production-linked incentives are expected to expand solid-state battery manufacturing worldwide.
Key Players Landscape and Outlook
The EV solid-state battery market comprises major automotive players and EV battery manufacturers. While major market players build their technology with the help of battery makers, EV solid-state battery manufacturers are expanding their production capacity to fill up the consumption. Furthermore, the companies seek government grants linked to production and innovation. Key players also collaborate, partner, and acquire to expand their market hold.
For instance, in April 2023, CATL unveiled a condensed battery, a cutting-edge battery technology at Auto Shanghai. It can achieve both high energy density and high level of safety at the same time, with an energy density of up to 500 Wh/kg, creating a whole new electrification scenario for passenger airplanes.
In March 2024, Renault declared that it might employ solid-state batteries free of cobalt in its electric vehicles. Battery manufacturer Ionic Materials will provide technical support for the next generation of solid-state battery products.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.