EV Solid State Battery Market - Forecasts from 2024 to 2029

The EV solid-state battery market is expected to register a compound annual growth rate (CAGR) of 41.39% during the forecast period (2024-2029).

The market for EV solid-state batteries will be a prime growth area in the consumer electronics segment within the next few years. Solid-state batteries have significant advantages over lithium-ion batteries, such as enhanced safety, increased energy density, and short charging times. As the market grows with the increasing demand for EVs, the need for novel and efficient batteries, including energy storage, will also rise.

Manufacturers are heavily investing in solid-state batteries, with Toyota, Hyundai, and Volkswagen taking the lead. Currently, the cost of solid-state batteries is higher than that of lithium-ion batteries, but this is again a constraint that may be shifted in the future as economies of scale set in.

EV solid state batteries market is rapidly rising in the Asia-Pacific region mainly due to the fast-growing market in countries like China and Japan in electric cars. The market is also categorized by vehicle types, where passenger and commercial vehicle markets are predicted to grow. In a global context, this type of battery will record significant growth in the near future due to increased demand for better battery technologies to support electric vehicles. These factors include the rising demand for electric vehicles, the quest for enhanced and safer energy storage technology in the EV solid-state battery, and enhancing renewable energy systems integration.

• The key driving factor for the EV solid-state battery market growth involves increasing demand for ELVs. It cannot be denied that EVs are steadily gaining popularity as the climatic change issues are talking points, and governments are creating more incentives to encourage the use of electric vehicles. Global automotive manufacturers are keen on reducing carbon emissions and shifting towards electric cars, and thus, there is a need for better energy storage systems such as solid-state batteries. These batteries have a higher energy density and a longer cycle life than lithium-ion batteries. As a result, these batteries have a significant role in increasing the driving range and improving the performance of EVs.
• Still another important factor that influences the EV solid-state battery market growth is the advanced integration of renewable energy systems, including solar and wind, in the grids. Intermittence of renewable energy sources requires efficient means of storing this energy, and solid-state batteries have been identified as suitable because of higher energy density and longer cycle efficiency. In the context of the increasing global focus on clean energy, these batteries are ready to meet the supply-demand equilibrium and reliable energy storage solutions.
• Moreover, the rising concerns about the energy storage systems to support energy grids are also fostering the solid-state batteries market. They are perfect for utility-scale energy storage systems and micro grinders for their ability to store large quantities of energy in a safe manner. Thus, as the world’s energy supply shifts from a centralized model to the use of renewable energy and distributed power generation, the functions of solid-state batteries in improving the stability of energy infrastructure and integrating renewable energy sources become apparent.

EV SOLID-STATE BATTERY MARKET DRIVERS:

The battery electric vehicle segment by propulsion is likely to be the fastest-growing segment during the forecast period.

BEVs are leading the EV battery market, taking approximately 70% of the market in 2022. This growth is due to the rise in the use of BEVs in the PC market, particularly in the passenger car segment, as prominent manufacturers push their development of electric cars and commit to making their models electric. Consumers are also conscious of sustainable mobility solutions with longer battery life, faster charging times, and higher driving ranges, affecting their buying behaviors.

It is also estimated that the two-wheeler and commercial vehicle segments will grow drastically from 2023 to 2032. The increasing needs for electric scooters and motorcycles also contribute to the overall demand for the EV battery market, together with commercial vehicles like delivery trucks and buses. The steady increase of BEV usage across different segments brings opportunities for the development of new battery solutions, thus driving the EV battery market’s growth

EV SOLID-STATE BATTERY MARKET GEOGRAPHICAL OUTLOOK

The Asia Pacific region to dominate the EV solid-state battery market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries. This region is expected to dominate the electric vehicle solid-state battery market during the forecast period owing to several countries, as mentioned above, that have significant production capacities that drive the demand. 

Asia-Pacific (APAC) is the most dynamic region in terms of the demand for EV solid-state batteries due to the growth of the number of EVs and the necessity to enhance battery efficiency. China and India are emerging as leaders in solid-state battery research and development.

For instance, China is a predominant market within the APAC region in the solid-state battery business. It also boasts to be the largest electric vehicle market globally. This has increased the demand for lithium-ion batteries. Some of the popular manufacturing companies, such as BYD and CATL, plan to open many new manufacturing plants to meet this demand. It aims to revolutionize the EV market through the mass production of solid-state batteries. Hence, it competes with other Chinese companies, namely Guangzhou Tinci Materials Technology and Qingdao Sunlight Science and Technology, which are also venturing into developing the same. BYD, in August 2022, disclosed its intention to construct an EV battery factory in Jiangxi, China, with an annual output of 30GWh.

India is also entering the APAC solid-state battery market. The country has an electric vehicles specific vision aiming to record a market share of 30 percent by 2030. This has led to an improvement in investment in battery production, where Exide Industries and Amara Raja Batteries are among the companies developing solid-state batteries for the Indian market. The Indian government has also extended some policies for using EVs, like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME), where the government gives direct incentives in terms of price cuts to the users of EVs.

In conclusion, the Asia Pacific region’s EV solid-state battery market is larger and expected to grow shortly, especially in China and India. This growth is due to the rising demand for electric vehicles and the need for improved and efficient battery technologies, and the region stands ready for the above trends of the subsequent years.

The EV solid-state battery market key developments

• June 2023: Basquevolt claimed that by the end of 2023, developments in its research and development center will produce only European solid-state battery technology. Since last April, it has been testing its first multilayer cells, which means that its method can reach very high energy density, 1 000 Wh/L and 450 Wh/kg, and simultaneously lower drastically the prices for battery packs in general.
• June 2023: ProLogium Technology (PLG) said it will launch a new next-gen SSB product called large-footprint lithium ceramic battery (LLCB) at ees Europe (6/13-16), Munich. European automotive makers will receive samples of the Indian-made CLLC by late 2023.
• June 2023: Automobile giant Toyota unveiled its plans to incorporate an enhanced onboard battery that triples cruising range and, simultaneously, reduces cost by a fifth in the generation IV EVs expected to launch in 2026. Bipolar batteries and two other improved battery types, all-solid-state batteries, will be commercialized by 2028. 

The EV solid-state battery market is segmented and analyzed as follows:

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Propulsion

• Plug-in Hybrid Electric Vehicle
• Hybrid Electric Vehicle
• Battery Electric Vehicle

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• Saudi Arabia
• United Arab Emirates
• Rest of Middle East and Africa
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific