Solid-state batteries to reduce battery costs and improve energy density

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  Quantumrun Foresight
• January 24, 2022

Insight summary

The automotive industry is on the brink of a significant shift with the introduction of solid-state batteries, which are expected to be more cost-effective and safer than traditional lithium-ion batteries. These new batteries, which use a dry ceramic separator instead of a liquid electrolyte, could enhance the performance and efficiency of electric vehicles (EVs), making them more appealing and convenient for consumers. The widespread adoption of EVs could have far-reaching implications, including job creation in new sectors, cleaner air in urban areas, and a decrease in noise pollution.

Solid-state batteries context

The automotive industry is set to see a big leap in battery technology with leading automakers rolling out solid-state batteries as early as 2022. Top automakers around the world have invested millions into solid-state development as researchers believe that the manufacturing costs of solid-state batteries could be around 40 percent lower than traditional lithium-ion batteries, leading to significant savings along with numerous safety benefits.

Today's lithium-ion batteries contain a liquid that acts as an electrolyte allowing the lithium ions to travel between a positive cathode and a negative anode, generating energy in the process. They are key components of laptops and smartphones, as well as vehicles. But lithium-ion car batteries have drawbacks; the charging time can be significant, they contain flammable contents that can ignite in a crash, and they can freeze at very low temperatures.

Researchers over the years have tested superior materials to solve these problems and the answer is a lithium-metal battery. A dry ceramic separator takes the place of the liquid electrolyte and allows for more efficient energy transfer as the ions traverse the paths. 

Disruptive impact

Solid-state batteries could significantly enhance the performance and efficiency of EVs, making these vehicles more appealing to consumers. This adoption surge could have a profound impact on the automobile industry, prompting manufacturers to shift their focus towards the production of EVs. Furthermore, the reduced charging time could make EVs more convenient for daily use.

The use of solid electrolytes, as opposed to flammable liquid ones, could reduce the risk of battery fires, a concern that has plagued the EV industry. This feature could lead to safer EVs, saving lives and reducing property damage. Moreover, the enhanced safety could also lead to lower insurance premiums for EVs, making them more affordable for consumers.

The widespread adoption of EVs powered by solid-state batteries could also help in achieving national environmental goals. As EVs produce no tailpipe emissions, their increased use could significantly reduce greenhouse gas emissions. Furthermore, governments could leverage the benefits of solid-state batteries to promote the use of EVs, offering incentives such as tax breaks or subsidies to consumers and manufacturers.

Implications of solid-state batteries

Wider implications of solid-state batteries may include:

• Job creation in new sectors, such as battery manufacturing and recycling, leading to a more diversified economy.
• The increased affordability and convenience of EVs, due to the improved performance of solid-state batteries, contributing to cleaner air in urban areas.
• The development of new mining projects for necessary materials, leading to economic growth in regions rich in these resources.
• A decline in the oil industry, affecting economies heavily reliant on oil exports and potentially leading to geopolitical shifts.
• Changes in urban planning, with more spaces dedicated to charging stations and less to traditional gas stations.
• A decrease in accidents related to battery fires, leading to lower healthcare costs associated with such incidents.
• Changes in commuting patterns reducing traffic congestion in urban areas.
• A decrease in noise pollution in urban areas contributing to a better quality of life.
• A decrease in the disposal of used lithium-ion batteries, reducing environmental pollution and the associated cleanup costs.

Questions to consider

• What do you think would be the long-term benefits of using solid-state batteries in EVs?
• How long do you think it would be before all EVs are powered by solid-state batteries?