Solid-State Batteries Move Closer to Reality for Future EVs

The most solid alternative to widely used lithium-ion batteries, with the benefits of improved safety, higher energy density, longer lifespan, and faster charging, is almost here.

This promising alternative is solid-state batteries (SSBs), which replace liquid electrolytes with solid electrolytes, thereby eliminating the fire risk and allowing for more compact designs, as well as supporting more charge cycles before degradation. 

A recent study¹ from the University of California reviewed the technology and found it capable of transforming not just electric cars but also consumer electronics and energy storage. The key to it all is chemistry and engineering.

“By removing the liquid and using stable solid materials instead, we can safely push more electricity into the battery at once, without the risks of overheating or fires.”

– Lead author Cengiz Ozkan, a professor of mechanical engineering at UCR

Unlike the liquid in traditional lithium-ion batteries, which degrade over time, pose fire risk, and limit charging speed, the solid material used in solid-state batteries offers a more stable and safer environment, enabling more efficient charging with fewer safety concerns.

With its superior qualities compared to current lithium-ion batteries, SSBs have been gaining a lot of traction among companies, but so far, the technology remains in the development stage. Not for long now, though.

Real-World Validation: Solid-State Batteries in EVs (QS/VW Demo)

This week, solid-state battery developer QuantumScape (QS +3.74%), along with its business partner PowerCo, made a live demonstration of its energy-dense solid-state lithium-metal batteries powering a vehicle.

PowerCo is the battery business of the Volkswagen Group, one of the world’s leading automobile manufacturers and the largest carmaker in Europe. VW is the owner of brands like Audi, Bentley, CUPRA, Ducati, Lamborghini, Porsche, SEAT, and Škoda. The company also produces light commercial vehicles and heavy commercial vehicles like MAN and Scania, while CARIAD is the software and technology unit for all Volkswagen Group vehicles. 

VW Group and PowerCo have been long-term investors in QuantumScape’s solid-state technology and have been testing their prototype cells for years.

Now, for the first time, QuantumScape, PowerCo, and Volkswagen Group have showcased the new tech at IAA Mobility in Munich, one of the world’s largest mobility trade fairs. 

Pulling the black sheet off the vehicle, they revealed a modified, fully electric Ducati V21L race motorcycle, which is wholly powered by QSE-5 solid-state cells.

The solid-state cells in the motorcycle were assembled using QuantumScape’s proprietary manufacturing platform (Cobra production process), which allows for faster heat treatment, requires less floor space, and eliminates certain material steps. The first-of-its-kind battery system, meanwhile, is designed by specialists at Audi, specifically for QS SSB cells.

The demonstration marks a big achievement not just for the companies involved but also the electric vehicle (EV) sector, as it was the first time that QuantumScape’s anode-free cells moved from the manufacturing plant into an actual vehicle for the world to see.

“Today we’ve crossed the threshold from possibility to reality.”

– QuantumScape CEO and president Dr. Siva Sivaram

The company’s partnership with PowerCo, he noted, positions QuantumScape to scale its transformative technology to gigawatt-hour (GWh) production, and together they will “help usher in a new era of electrified transportation.”

According to the official announcement, the world’s first live demonstration of QS solid-state lithium-metal batteries powering an EV represents a significant advancement in battery technology and a big step towards commercializing solid-state EVs.

With this tech, the goal is to help advance the EV revolution, which PowerCo CEO Frank Blome says “is the biggest transformation the automotive industry has ever seen.” 

SSBs will redefine what’s possible for high-performance, premium vehicles with the demonstration being just the beginning, he added.

QuantumScape’s Roadmap For Prototype to Production

With traditional lithium-ion batteries reaching the limits of their possible energy density and safety as portable electronics, electric vehicles, and renewable energy grids become more widespread and demanding, QuantumScape has turned to solid-state batteries to provide greater energy density, faster charging, and enhanced safety to support the transition to a lower-carbon future.

It is currently leading the global race of solid-state battery development, all set to bring its full-fledged solid-state cells to the EV market at scale in the near future.

The recent demonstration of its tech for the world to see actually sent the share prices of the $5 billion market cap company surging. At the time of writing, QS is trading at $8.85, up a whopping 70.52% YTD, though it is still far off its all-time high (ATH) of $132.73 hit late in 2020. 

QuantumScape has an EPS (TTM) of -0.91 and a P/E (TTM) of -9.76.

As for the financial outlook, it reported capital expenditures of $8.3 million in Q2 of 2025. The expenses mainly supported facilities and equipment purchases as QuantumScape prepared for higher-volume QSE-5 B1 sample production during this period.

Its GAAP operating expenses were $123.6 million, GAAP net loss was $114.7 million, and adjusted EBITDA loss was $63 million.

The company ended the quarter with $797.5 million in liquidity and extended its guidance for cash runway into 2029.

QuantumScape actually expects to ship its sample cells for testing soon, with commercial production expected to begin in the next couple of years, depending on manufacturing scaling and regulatory approvals.

The B-sample cell called QSE-5 is the first planned commercial product of QuantumScape, which is designed to meet the EV sector’s need for batteries that must excel in five crucial battery performance metrics: cost-effectiveness, energy density, charging speed, safety, and lifespan.

The innovation here is the anode-less cell design, which simplifies manufacturing and lowers material costs while delivering high energy density. Paired with advanced separators, the design gives QuantumScape advantages in safety and efficiency. 

It has replaced the organic separator with a nonflammable and noncombustible solid-state separator that provides more safety. Meanwhile, eliminating the graphite/silicon anode host material increases volumetric and gravimetric energy densities.

QuantumScape claims its QS technology has an 844 Wh/L energy density and 10C continuous discharge. Also, the lithium-metal solid-state battery takes just over 12 minutes (12.2 min) to charge from 10-80%.

If the technology is scaled successfully, it could become a standard for next-gen EVs as well as other energy storage solutions. The world premiere of the technology this month marks a big milestone towards that goal, which comes after a series of achievements.

Scaling QSE-5: From Pilot Lines to GWh Manufacturing

In order to bring QSE-5 to the real-world EVs as soon as possible, QuantumScape and PowerCo have been working together for three years now. The partnership combines QuantumScape’s talent with PowerCo’s manufacturing expertise.

Just a few months ago, the two expanded their strategic partnership to accelerate the development of the QSE-5 battery, which is currently being manufactured on QuantumScape’s San Jose pilot line, marking a major step forward in the industrialization of SSB technology.

This was the result of an agreement the two reached last year, under which QuantumScape gave PowerCo a non-exclusive license to mass produce the solid-state technology. 

It allows PowerCo to produce up to 5 GWh of QSE-5-based cells annually in addition to the previously agreed 40 GWh with the option to expand up to 80 GWh, including for customers outside the VW Group. The expanded capacity is reportedly enough to equip about one million EVs with solid-state tech per year. The agreement also gives it the right to license certain future QS technology.

As a result, PowerCo will be contributing an additional $131 million over the next two years in exchange for QuantumScape prioritizing QSE-5 cells. The capital will help QS in scaling its manufacturing and making higher-volume prototype cell deliveries to the battery company.

QS first made its 24-layer solid-state cells available to Volkswagen Group for testing, back in Dec. 2022. The following year, it reported surpassing performance targets during testing. Early last year, PowerCo also ran its own endurance tests on QS cells and reported “very encouraging results.”

The Volkswagen Group’s battery arm confirmed that QS’s solid-state battery cells achieved over 1,000 charging cycles with more than 95% capacity retention. 

The tests were conducted at PowerCo’s Salzgitter battery labs in Germany. The tests showed that an electric car with a WLTP range of 500-600 km (311-373 miles) outfitted with QS cells can drive about 500,000 kilometers (more than 310,000 miles) without losing range.

With these impressive results, Volkswagen aims to become “a global technology driver in the automotive industry,” but there’s still a long way to go before it can commercialize a marketable solution.

That could take the rest of the decade despite the recent promising showing. That’s because the first electric motorcycle presented at the IAA Mobility was extensively modified with the battery system designed specifically to fit the needs of the solid-state batteries, allowing the Ducati to be equipped with up to 980 QSE-5 cells.

Nevertheless, Volkswagen is committed to seeing this through and will be taking “the next step towards series production,” said Thomas Schmall, Group Board Member for Technology. With Volkswagen’s unified cell concept already suitable for QS cells, the focus will now be on refining and scaling the manufacturing processes.

Schmall noted that with their new in-house unified cell, they “have created the perfect match” as it is “solid state-ready” and enables rapid technology transfer to the company’s vehicles, as soon as the solid-state battery is ready.”

Ready to make its debut in upcoming small electric cars from VW, Cupra, and Skoda, the unified cell has an energy density of around 660 Wh/l and an entirely new design where the cells are installed directly into the pack.

At the event, Volkswagen said that the unified cell will be used in up to 80% of its own EVs in the future. While the cell type will stay the same, the cell chemistry may vary, allowing it to be “equipped with various cell chemistries from LFP and Sodium-Ion to NMC and Solid-State.” 

PowerCo and QuantumScape are currently working on integrating solid-state technology into the unit cell and thus into the car. At the same time, a race-ready motorcycle will be developed for testing on the racetrack. 

The Global Race Towards SSB Breakthroughs

Volkswagen is clearly making a lot of strides in leading the solid-state battery technology, but it isn’t alone in this endeavor. This week, Mercedes-Benz also announced records of its own.

A ‘lightly modified’ Mercedes EQS packed with a solid-state battery covered a distance of 1,205 km (748.7 miles) on one charge. After travelling from Stuttgart, Germany to Malmo, Sweden, it still had 137 km (85.12 miles) range left. 

This new record broke the previous one set by the Vision EQXX by three kilometres. The road testing has been part of the company’s comprehensive validation program for solid-state battery technology under real-world conditions on public roads.

“The solid-state battery is a true game-changer for electric mobility. With the successful long-distance drive of the EQS, we show that this technology delivers not only in the lab but also on the road. Our goal is to bring innovations like this into series production by the end of the decade and offer our customers a new level of range and comfort.”

– Markus Schäfer, Member of the Board of Management of Mercedes‑Benz Group AG, Chief Technology Officer, Development & Procurement

For its battery, Factorial Energy provided the company with lithium-metal cells that are based on Factorial Electrolyte System Technology.
Swipe to scroll →

The Porsche-co-owned Croatian company, Rimac, is yet another one to showcase that SSBs can boost power, bring down weight, and solve the range issues that current batteries are facing. The new battery is developed in collaboration with Mitsubishi Chemical Group and ProLogium.

Presented at Munich’s IAA Mobility 2025, Rimac claims that its pouch-cell SSB has a power density of 1,000 watts per pound, weighs 847 pounds, and retains over 95% of its energy at -20 degrees Celsius (-7 F).

Among others working on advancing the tech is Toyota (TM +2.34%), which first revealed the world’s first prototype EV that ran on SSB back in 2020, only to share a couple of years later that a Toyota hybrid is more likely to get an SSB than an EV.

The best-selling automotive brand worldwide is actually expecting to begin the mass production of its first solid-state battery by 2027-2028. Toyota claims that its solid-state battery will deliver a 20% increase in cruising range and could charge from 10-80% in under 10 minutes.

Then there’s Honda (HMC +1.85%), whose solid-state battery pilot production line is already up and running. Located in Sakura, Japan, the automaker has invested about 43 billion yen, or about $290 million, in the facility to support next-generation EV battery development. 

Its solid-state cells, according to Honda, could potentially be 25% cheaper, 35% lighter, and 50% smaller than current lithium-ion batteries. The Japanese automaker aims to start mass production of all-solid-state batteries (ASSB) in the second half of this decade.

The $46.8 bln market cap Ford (F +0.16%) is yet another auto manufacturer that is actively developing solid-state batteries. For its SSB efforts, Ford has partnered with startup Solid Power.

The company first invested in Solid Power in 2019 before making an additional equity investment in 2021 to help accelerate the development of technology. In that investment round, BMW Group also participated and became an equal equity owner with Ford.

“Solid-state batteries are showing great promise,” noted the carmaker at the time, adding, “they also can be made on today’s lithium-ion battery lines, allowing Ford to reuse about 70 percent of its capital investment in lithium-ion manufacturing lines.”

Ford EV partner SK On is also researching the technology with a number of Korean universities and institutions. It is developing two types of ASSBs, one with a polymer-oxide composite and the other being sulfide-based, with their commercial prototypes not expected until 2027 and 2029, respectively.

The Chinese technology company Huawei, meanwhile, reported a breakthrough, which is based on a nitrogen-doped sulfide SSB. It can reach energy densities between 400 and 500 Wh/kg, which is two to three times more than that of conventional lithium-ion EV batteries.

The solid-state EV battery from Huawei promises a driving range of up to 3,000 kilometers (1864 miles) on a single charge. Moreover, it has the ability to be fully recharged within five minutes.

Final Thoughts

Solid-state batteries (SSBs) promise to revolutionize the way we power electric vehicles (EVs), consumer electronics, and renewable energy systems. With their higher energy density, faster charging speeds, superior safety profile, and longer lifespans, they make for an ideal successor to lithium-ion technology. 

But despite billions of dollars in investments from industry giants, significant hurdles remain. From reducing costs to scaling up manufacturing and ensuring long-term reliability on the road, challenges continue to persist. And that’s why solid-state cells are still largely in the development phase, requiring extensive testing and validation before they can be deployed in the real world at scale.

Latest advancements, however, paint a promising picture. QuantumScape’s live demonstrations, PowerCo’s endurance tests, and record-setting long-distance drives from Mercedes-Benz signal that the industry is finally moving closer to overcoming these barriers.

So, as partnerships grow, pilot production lines expand, and innovative designs continue to emerge, solid-state batteries look ready to become mainstream this decade, unlocking a new era of electric mobility and sustainable energy solutions.

Click here for a list of the top solid-state battery stocks to watch.

References:

1. Shang, R., Nelson, T., Nguyen, T. V., Nelson, C., Antony, H., Abaoag, B., Ozkan, M., & Ozkan, C. S. (2025). A comprehensive review of solid-state lithium batteries: Fast charging characteristics and in-operando diagnostics. Journal of Power Sources, (Version of Record), published 12 June 2025. Received 26 February 2025; revised 21 April 2025; accepted 9 June 2025. https://doi.org/10.1016/j.jpowsour.2025.235056