Dr Alex Holland

Lagos — China stands out as the clear leader in both developing and scaling up battery technologies. Ranging from enhancements of lithium-ion (Li-ion) batteries to advancements in sodium-ion and future chemical innovations, Chinese firms lead in terms of efficiency, affordability, and manufacturing capabilities. According to the IDTechEx report titled "Advanced Li-ion Batteries 2025-2035: Technologies, Players, Markets, Forecasts," this document offers comprehensive insights into current trends and progressions concerning sophisticated and upcoming Li-ion cell components and configurations.

Recently, BYD introduced their advanced fast-charging battery technology. Shortly after, CATL launched their updated second-generation Shenxing battery. This particular lithium iron phosphate (LFP) model promises an impressive boost: it can go from 5% to 80% charge within just 15 minutes, and they claim you get about 520 kilometers added to your driving range following only a 5-minute recharge session. CATL credits these advancements primarily to enhancements made in the LFP cathode materials, refined electrode architectures, as well as better electrolyte compositions. Such progress underscores that continuous refinement of current Li-ion components, cells, and overall battery configurations continues to bring significant upgrades in terms of battery capabilities—especially concerning faster charging times, enhanced safety features, and improved energy efficiency.

Apart from lithium-ion (Li-ion), China is at the forefront of promoting sodium-ion (Na-ion) batteries commercially. These Na-ion batteries are attracting interest because they show promise in offering superior rate capabilities and improved functionality in cold temperatures—areas where conventional Lithium Iron Phosphate (LFP) batteries often struggle. Additionally, they provide insurance against possible disruptions in the supply chain of materials used for Li-ion batteries. Recently, Contemporary Amperex Technology Co., Ltd. (CATL) launched its Na-ion electric vehicle (EV) battery under the brand name Naxtra, signaling a major advancement towards practical implementation. While startups in Europe and North America are making strides with new developments in electrode and cell chemistries, China remains ahead when it comes to increasing manufacturing capacity. Leading Chinese manufacturers specializing in anodes and cathodes have already established dedicated facilities for producing Na-ion components, and progress in full-cell fabrication is considerably advanced compared to global counterparts.

The IDTechEx’s Battery and Energy Storage subscription offers up-to-date insights and reports on advancements in Li-ion and Na-ion battery technologies, as well as emerging trends and market shifts.

Global contest: Stand out or vanish?

China’s ascendancy is causing alarm among Western manufacturers. The difficulties encountered by European and North American battery companies, like the bankruptcy of Northvolt and reduced investment strategies from firms such as ACC, PowerCo, Umicore, and Ford, underscore the significant hurdles they face in staying competitive.

The slowdown in EV adoption during 2024 has made cost and performance parity with internal combustion engine (ICE) vehicles a renewed priority, and as current Li-ion designs near their performance limits, especially in terms of energy density, new and advanced battery technologies take on added importance. For companies outside China, breaking through with next-generation technologies may be the only path to survival and relevance. Here, the relatively large number of European and North American start-ups developing next-gen battery technologies provides some hope.

Solid-state batteries remain a long-promised innovation, offering enhanced safety and high energy densities when combined with lithium-metal or anode-free designs. Challenges in scalability, cost, and long-term performance remain, though developments such as Stellantis’ recent validation of solid-state cells from Factorial highlight ongoing progress. In the shorter term, the commercialisation of high silicon content anodes continues, with data from numerous companies highlighting their potential for improved energy density and fast charge capability. At the cathode, ultra-high nickel materials push the performance envelope but will not offer the cost reductions that are highly sought after. The low-cost of LFP batteries has driven their rapid increase in market share from 2020 but further adoption would ingrain global reliance on Chinese supply chains with close to 100% of LFP cathode material production located in China.

At present, there is growing interest in lithium-manganese-rich (Li-Mn-rich) cathodes. These materials offer a balanced solution: they boast higher energy density than LFP batteries but come at a lower cost than NMC batteries. Consequently, Li-Mn-rich cathodes could serve as a viable substitute for LFP batteries within the European and North American markets, potentially opening up new avenues for supply chain diversity. However, like many emerging technologies, these cathodes face ongoing challenges related to material stability and have yet to achieve widespread commercial adoption due to lingering uncertainties about their long-term reliability.

Innovation, scale, and strategy

Many cutting-edge and future-oriented lithium-ion battery technologies are currently under development. These advancements will enhance battery efficiency, thereby boosting the feasibility of electric vehicles and stationary storage systems globally. Beyond Asia, notably China, the progress on these innovative technologies may significantly influence the growth of robust local battery industries. Given the uncertainties surrounding electric vehicle and energy storage system deployments due to policy shifts and geopolitical dynamics, it becomes essential to create affordable yet highly efficient battery options along with regional manufacturing capabilities.

The IDTechEx report titled "Advanced Li-ion Batteries 2025-2035" examines numerous crucial developments in sophisticated and future-oriented Li-ion batteries. This includes innovations such as silicon and lithium-metal anodes, manganese-rich cathodes, ultra-high nickel NMC cells, LMFP technology, and lithium-sulfur batteries. The report also delves into improved cell and battery design optimizations and provides insights into major companies and emerging startups operating in this field.

*Alex Holland, PhD, Research Director at IDTechEx