By Michael C. Anderson, editor-in-chief, Battery Technology

The battery industry has become a cornerstone of the global economy, underpinning the rapid growth of electric vehicles (EVs), renewable energy storage and portable electronics. The global demand for batteries is expected to surge, quadrupling to 4,100 gigawatt-hours (GWh) by 2030, driven by surging EV adoption and ambitious decarbonization targets. The sector’s influence extends beyond commerce, playing a critical role in climate policies and energy security strategies worldwide. This article breaks down the battery industry trends to watch.

Editor’s note: The following article is reprinted with permission from Battery Technology and was published online on December 12, 2024.

Battery industry news breaks globally literally multiple times a day, every day. This article brings the reader’s attention to some of its most important narrative threads, with battery industry trends to watch in 2025.

Dependence on global supply chains

China has established a commanding presence in the global battery industry, leveraging substantial government support and strategic investments to dominate electric vehicle (EV) battery production and research. Companies like CATL and BYD lead in global EV battery shipments, collectively accounting for over half of the market. This dominance further is reinforced by China’s control over critical mineral supply chains essential for battery manufacturing. The nation’s focus on solid-state battery technology, exemplified by initiatives such as the All-Solid-State Battery Collaborative Innovation Platform, underscores its commitment to maintaining technological leadership.

In response, both the US and the EU are implementing strategies to reduce dependence on Chinese battery technologies and materials. The US government has introduced tariffs on Chinese EVs and batteries to protect domestic industries and counter perceived unfair trade practices. Simultaneously, the EU has advanced its own battery regulations, such as the Battery Regulation Directive, aimed at securing a sustainable and circular battery supply chain. Both regions are investing heavily in domestic gigafactories and fostering partnerships to establish alternative sources of critical minerals. However, these measures face challenges, including political opposition, high production costs and the complexities of reshoring supply chains. Despite these hurdles, the West continues to prioritize reducing reliance on China while advancing technological innovation and economic competitiveness.

Slowdown in EV adoption

In 2024, the electric vehicle (EV) market experienced a notable deceleration in adoption rates. In the US, approximately 600,000 electric cars and trucks were sold in the first half of the year – a modest 7% increase from the previous year, a significant decline from the 46% surge observed in 2023. This slowdown has been attributed to factors such as high borrowing costs, economic uncertainties and evolving consumer preferences. In Germany, EV sales dropped by 16.4% in the first half of 2024 compared to the same period in 2023, following the elimination of government subsidies and cultural reservations about transitioning from combustion engine technologies.

In response to these challenges, automakers have adjusted their strategies to align with the shifting market dynamics. Ford, for instance, has revised its EV approach by focusing more on hybrid models and delaying the launch of new all-electric vehicles, aiming to balance consumer demand with financial sustainability. Similarly, General Motors has implemented layoffs and scaled back EV production plans to mitigate financial pressures amid the slowdown. In Europe, companies like Mercedes-Benz and Stellantis have paused battery plant projects and reconsidered investments in electric technologies due to market changes and high raw material costs. These strategic shifts reflect the industry’s efforts to navigate the evolving landscape and position themselves for long-term success despite current headwinds.

EV charging infrastructure

In 2024, the rollout of EV charging infrastructure struggled to keep pace with the growing number of electric vehicles on the road, particularly in regions like the US and Europe. Despite significant government funding under programs such as the US National Electric Vehicle Infrastructure (NEVI) initiative, challenges including permitting delays, supply-chain disruptions and insufficient workforce training hindered progress. Many EV owners cited concerns about the availability and reliability of charging stations, highlighting a critical barrier to broader EV adoption.

Solid-state battery development

In 2024, the development of solid-state batteries (SSBs) gained significant momentum, with major industry players achieving notable technological advancements. Samsung SDI unveiled a novel all-solid-state battery boasting an energy density of 900 Wh/L, setting a new industry benchmark and pushing the boundaries of energy storage capabilities. Similarly, TDK Corporation introduced a next-generation solid-state battery with an unprecedented energy density of 1,000 Wh/L, approximately 100 times greater than its existing mass-produced CeraCharge batteries, marking a substantial leap in battery innovation.

Meanwhile, China established the All-Solid-State Battery Collaborative Innovation Platform (CASIP), uniting government entities, academia and industry leaders like CATL and BYD to create a robust supply chain for solid-state batteries by 2030. And in Japan, Honda opened its demonstration production line for its solid-state batteries. By January 2025, Honda plans to begin test production, refining both manufacturing techniques and battery cell specifications. In the US, Saint-Gobain Ceramics partnered with ION to accelerate the development of US-based solid-state batteries, aiming to enhance stability, safety and energy density over traditional lithium-ion batteries. These initiatives underscore a global commitment to overcoming the challenges of scaling production and sourcing materials, positioning solid-state batteries as a transformative force in the energy storage landscape.

Li-ion safety concerns

In 2024, multiple incidents have highlighted the dangers of lithium-ion batteries, particularly when thermal runaway occurs. The October 2023 fire at the SK Battery America plant in Commerce, Georgia, led to a federal investigation by OSHA, which uncovered severe safety protocol failures, including inadequate training for workers exposed to toxic fumes after the incident. In May 2024, a fire at the Gateway Energy Storage Facility in Otay Mesa, California, reignited several times due to the persistent thermal runaway of lithium-ion batteries, despite extensive efforts to extinguish it. Further escalating concerns, a catastrophic fire at a battery factory in Hwaseong, South Korea, claimed 22 lives in June, illustrating the explosive potential of these batteries when mishandled or damaged. These events underscore the need for stronger safety measures across the battery manufacturing and energy storage sectors.

In response to the increasing frequency of these fires, researchers are developing innovative solutions to improve battery fire safety. Just one example: The National Institute of Standards and Technology (NIST) has introduced an AI-powered detection system designed to identify early signs of lithium-ion battery failure. By analyzing the distinct “click-hiss” sound made by failing batteries, the AI system provides an early warning in environments where traditional smoke alarms may fail to react in time. This detection technology has demonstrated 94% accuracy in noisy settings, offering a promising solution to prevent catastrophic battery fires in high-risk environments such as warehouses and garages.

Sodium-ion batteries

Sodium-ion batteries are making significant strides as a promising alternative to lithium-ion technology, largely due to their abundance and lower environmental impact. Unlike lithium, which is confined to specific regions, sodium is widely available, addressing supply chain and geopolitical concerns. Sodium-ion batteries offer key advantages, including broader temperature ranges, enhanced safety, faster charging and extended cycle life, making them an appealing choice for energy storage solutions in sectors like renewable energy and electrification. These benefits place sodium-ion technology as a potential game-changer in the race for more sustainable, high-performance energy storage options.

The sodium-ion sector saw major developments in 2024, with Natron Energy announcing plans for a $1.4 billion manufacturing facility in North Carolina. This factory will ramp up production to 24 GW annually, creating over 1,000 jobs and boosting the state’s economy by $3.4 billion. Additionally, Farasis Energy made waves in the EV industry by launching the world’s first EV powered by sodium-ion batteries, the JMEV EV3, which boasts impressive features like low-temperature performance and high safety standards. Farasis also plans to launch second-generation sodium-ion batteries with improved energy densities in the coming years, indicating significant potential for this emerging technology.

Lithium Iron Phosphate development

LFP (Lithium Iron Phosphate) batteries have become increasingly favored in 2024 due to their enhanced safety, longer lifespan and cost-effectiveness compared to traditional lithium-ion chemistries. One of the key advantages of LFP batteries is their stability – unlike other lithium-ion chemistries, LFP batteries are less prone to thermal runaway, making them safer for use in electric vehicles (EVs) and energy storage systems. Additionally, LFP batteries are less reliant on scarce and expensive materials like cobalt and nickel, which helps reduce costs and improve sustainability.

In August 2024, Zeekr introduced a significant advancement in LFP technology with the release of its new 5.5C LFP batteries, capable of charging from 10% to 80% in just 10.5 minutes. In December CATL announced plans to invest €4.1 billion in a joint venture with Stellantis to establish a 50 GWh LFP battery plant in Zaragoza, Spain. This facility, set to commence production in 2026, aims to supply batteries for electric vehicles (EVs) for brands such as Peugeot, Citroën and Fiat. And BYD’s Blade battery, an advanced LFP design, now is powering not only BYD’s own EVs but also those of other manufacturers, highlighting its growing role in the global battery supply chain. This strategic move positions BYD as a formidable competitor to both CATL and Tesla in the EV and battery sectors. 

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