China is making strides on the commercialization of solid state batteries, raising the possibility of a key breakthrough for the much-hyped technology, according to analysts at Bernstein.
Solid-state batteries, which utilize thin layers of solid electrolytes to carry lithium ions between electrodes, are known as a "grail" of battery development, allowing for more energy to be held than older -- but more ubiquitous -- lithium-ion options.
Observers have long noted that the successful mass implementation of solid-state batteries could effectively be the "kiss of death" for internal combustion engines in particular, as they would greatly boost the power and driving range of electric cars.
Range has been seen as a major headwind to widespread adoption of EVs, with consumers concerned that these vehicles may not have long enough charges to carry out long journeys. A Reuters poll conducted in 2023 found that 35% of Americans wanted EVs with ranges of 500 miles or more.
Charging times, another area of worry for prospective EV buyers, may also be improved by solid-state batteries.
However, it has proven difficult for carmakers to mass produce cars with solid-state batteries, largely because of difficulties related to designing a solid electrolyte that is stable and chemically inert, but still an effective conductor of ions. They have also been known to crack and can be costly to manufacture, making them more expensive than lithium-ion batteries.
Yet in a note to clients, the Bernstein analysts said that mid-year results from Chinese battery makers have featured an "uptick in positive commentary" around the commercialization of solid-state batteries, with some firms in the country saying this could happen "as early as next year."
Wuxi Lead Intelligent Equipment highlighted that demand for semi-solid and all-solid-state battery gear increased substantially in the opening six months of 2025, with the latter accounting for a "meaningful share" of revenue, the analysts said. They added that peer Gotion is planning to mass produce 2 gigawatt hours of all solid-state battery (ASSB) capacity as early as next year, while EVE Energy is aiming to introduce a pilot line of the technology in 2026.
Still, the cost of ASSB -- roughly 10 times that of current batteries -- should limit demand to high-end applications initially, the analysts said. However, they said the commentary hints at a "DeepSeek" moment for batteries, referring to the Chinese start-up whose low-cost artificial intelligence model roiled global financial markets earlier this year and caused some investors to reassess longstanding AI spending strategies.
Source :
https://www.investing.com/news/stock-market-news/has-a-deepseek-moment-arrived-for-solidstate-batteries-bernstein-weighs-in-4231709
