Solid State Battery Market Growth Driven by Strong EV Sales

May 22, 2018


The rapidly shifting trend toward the increasing adoption of electric vehicles is one of the vital driving forces of solid state battery market. Considering that EVs are likely to reshape the future of the automotive industry, battery infrastructure development has been gaining renewed prominence in recent times. Numerous vehicle manufacturing companies are now inclining toward adopting solid state battery facilities on a large scale, leaving no stone unturned as far as investments are concerned. The rising efforts by automakers to enhance battery technology, aided by the favorable financial support provided by regional governments is certain to excite the solid state battery industry stakeholders.
 

Elaborating further on the aforementioned pointer, it would be imperative to mention that regulatory and government bodies have been religiously encouraging the adoption of EVs, on account of fossil fuel depletion and the rise in carbon dioxide emissions. This has led to myriad automakers refocusing their goals toward environmental safety and subsequently concentrating solely on the development of EVs. In consequence, this has generated a widespread demand for advanced batteries, providing a lucrative growth avenue for solid state battery market players. Tech giants have also been actively involved in developing next-generation battery solutions to power future electric vehicles.
 

In the very recent past, one of the leading companies operating in digital technology, energy, and nanoelectronics, Imec successfully developed an innovative and high-performance solid state Li-ion battery. Imec’s research team also seems to be working in the invention of next-generation solid state batteries for increasing energy density of the cell. Imec’s milestone development proves that the involvement of major battery manufacturers and material suppliers toward brainstorming innovative battery technologies is likely to stimulate solid state battery market share over the coming years.
 

As future of the mobility comes to depend more on electric power instead of fossil fuels, collaborations between automakers and battery producers are likely to become commonplace. For instance, the Germany-based leading luxury carmaker Daimler has been working with numerous start-ups in solid state battery market to bring about game-changing innovations in EVs. In addition, Daimler has also partnered with the Colorado-based start-up Solid Power for developing an advanced solid state battery technology. Daimler’s initiative is certainly indicative of the efforts that renowned automakers are putting in for the development of EV battery infrastructure, which is certain to impel solid state battery industry share.
 

Solid state battery market has lately been witnessing the influx of numerous investors, thereby leading to the fragmentation of this vertical. Technically speaking, as of now, most of the Asian countries comprising China, Korea, and Japan are dominant across the globe as far as the production of Li-ion batteries for mobile devices and electric vehicles is considered. In response, the regulatory framework across Europe has been actively supporting the regional solid state battery industry giants to compete with the ones across the Asia market.
 

Citing an instance justifying the aforementioned competitive scenario in solid state battery market, recently in January 2018, the UK government has launched a new research program and has provided a funding of £42 million in order to encourage R&D activities in the nation regarding the development of solid state batteries. This amount is seemingly a small chunk of the total sanctioned funding of £246 million, which is expected to be further bifurcated for numerous other research projects involving battery recycling, battery system modelling, and battery life extension. As other member countries of the European Union follow suit, the continent may soon stand at par with Asia as far as the research contribution in solid state battery market is considered.
 

Considering the government’s regulatory approach toward the usage of internal combustion engines for current mobility services, the companies that produce components for IC engines are eventually shifting their focus toward manufacturing solid state batteries. Market leader NGK, one of the top spark plug manufacturers has decided to develop lightweight and higher energy storage solid state batteries for electric cars. The company is essentially looking forward to matching the performance of solid state batteries to traditional lithium ion batteries for creating more powerful charging facilities for EVs. The shifting focus of companies that are involved in internal combustion engine technology development toward the manufacturing of solid state batteries is poised to commendably boost the industry dynamics over the years ahead.
 

Currently, most of the electric vehicles are powered by conventional Li-ion batteries. However, pertaining to certain product limitations, many automakers have been shifting their preference to solid state battery packs. Myriad automobile manufacturers have been rapidly undertaking initiatives to install newly developed solid state batteries in their fully electric as well as hybrid vehicles. Powered by the same, in tandem with the steps initiated by regional governments to promote R&D activities in the advancement of battery technologies, solid state battery market is likely to traverse along a highly remunerative growth path ahead.
 

Market Study Report offers multiple research titles on solid state battery market at https://www.marketstudyreport.com/search?q=solid+state+battery .