How EV batteries, from lithium ion to solid state, are evolving
(From Automotive News)
The electric vehicle battery industry enters the second half of 2026 in a state of flux.
On one end: momentum from years of rapid development and dramatic cost declines. On the other: challenges from sagging U.S. demand, overproduction in China and a cost-cutting focus that has slowed new technology development.
Battery pack prices fell to a record-low global average of $108 per kilowatt-hour, according to the Volta Foundation’s 2025 Battery Report — and just $84 per kWh for Chinese manufacturers’ lithium iron phosphate packs. That has pushed EVs closer to cost parity with gasoline vehicles.
Global EV sales topped 20 million in 2025, up 20 percent, and could climb to 23 million this year to make up 28 percent of all new-vehicle sales, the International Energy Agency said in its annual Global EV Outlook report published in May.
Lithium ion battery development still advancing
Conventional lithium ion battery chemistries remain dominant and are continuing to get better. The Volta Foundation’s battery report cites improvements in lithium manganese iron phosphate as a more energy-dense successor to lithium iron phosphate, plus advances in cathode and anode chemistries to increase battery life and energy density.
Panasonic, a longtime battery supplier to Tesla, is working on anode-free cells to increase energy density. A battery made of such cells could increase battery pack capacity by 25 percent, Panasonic said — that’s 90 miles of additional range for the Tesla Model Y without increasing pack size.
Ford Motor Co. and General Motors also
are betting on lithium manganese rich batteries to increase both range and cost effectiveness, said Michael Liu, the Volta Foundation’s director of research and insights. The batteries’ manganese-rich cathodes — up to 70 percent by weight — offer one-third more energy density than traditional lithium ion batteries while greatly reducing their nickel and cobalt content.
Lithium manganese iron phosphate batteries replace some of the iron found in lithium iron phosphate cells with manganese to increase energy density. Lithium manganese rich batteries use greater quantities of manganese, which is more abundant in nature, and less of the costlier nickel and cobalt.
Chinese giant BYD says it has improved its Blade lithium iron phosphate battery. The
second-generation Blade offers 5 percent more energy density and can enable ultrafast charging — from 10 percent to 70 percent in just five minutes and 10 percent to 97 percent in fewer than 10 minutes, the company said.
BYD’s new Blade “is probably the most remarkable [battery] advance in the past year,” Parr said.
Solid-state batteries closer, but not yet here
One problem with conventional lithium ion batteries, which use a liquid electrolyte, is
the risk of fire and thermal runaway. Replacing the flammable liquid electrolyte with solid material is the EV battery industry’s moonshot. Solid-state batteries virtually eliminate fire risk while allowing for much greater energy density and faster charging than conventional lithium ion batteries.
Toyota says it will have
several models with solid-state batteries in the market in 2027 or 2028. Mercedes-Benz and BMW are conducting road tests. Mercedes announced in September that it obtained almost 750 miles of range from an EQS sedan with a lithium-based solid-state pack.
And numerous Chinese EV makers, including BYD, expect to begin rolling out limited high-end models with solid-state batteries as early as 2027.
In what it claims is the first such effort in North America, Stellantis this month said it is road-testing a Dodge Charger Daytona outfitted with a solid-state lithium battery from its Massachusetts-based development partner, Factorial Energy.
But significant obstacles remain. Solid-state packs are plagued by poor performance in extreme cold and are costlier than conventional batteries. Specialty manufacturing processes also are needed to produce uniform solid electrolyte layers and prevent rapid cell degradation.
Most industry analysts set 2030 as the earliest to expect commercially viable solid-state batteries in mass-market EVs.
Semisolid-state batteries can serve as bridge
Chinese automakers have found an incremental step — a lithium-based semisolid-state battery. They use a gel-like electrolyte to reduce their flammable properties, and the Volta Foundation suggests semisolid-state cells could act as a bridge toward fully solid-state batteries.
Chinese EV maker
Nio has begun mass production of 150-kWh semisolid-state battery packs. SAIC-owned MG recently
launched the MG4 EV in Europe using a semisolid-state battery pack. Several Chinese battery makers also are supplying semisolid-state packs to stationary energy users, including data centers and power plants.
Future battery work beyond lithium ion
Work continues on alternate battery types, but most still are in the very early stages of development, Parr said.
Sodium ion appears to be the most promising nonlithium chemistry, in part because of the abundance and low cost of sodium. But sodium-based batteries are less energy-dense even than lithium iron phosphate packs and can’t yet economically hit the 300-mile range U.S. consumers demand.
New production and charging equipment also would be needed, Liu said. Sodium ion likely won’t be viable in EVs until the early to mid-2030s, and then only for low-performance vehicles, according to the Volta Foundation and other battery industry researchers.
In the meantime, GM said it is teaming with Peak Energy
to develop sodium ion batteries for stationary energy storage. GM will manufacture the batteries for Peak Energy’s storage systems, the companies said.
Ford also is
developing batteries for energy storage, using lithium iron phosphate chemistry. The automakers are redirecting some of their battery-making capacity as slumping EV sales in the U.S. have created a market gap.
The challenge for the next decade is improving known battery chemistries for affordability and reliability, rather than pursuing entirely new ones, Parr said.
In the U.S., government policies have resulted in a slowdown in battery research, he said, “but there still are a lot of startups working hard. Their survival depends on how long this slowdown lasts.”