Solid-State Batteries: Manufacturing Progress, Costs and the Road to Mass Adoption

Large-scale manufacturing remains one of the biggest challenges for solid-state batteries. Because solid electrolytes can react with water, mass production requires defect-free sheets of ceramic-like material, along with a dry room for battery assembly. Potential costs vary by manufacturer, but most estimates suggest solid-state batteries could become comparable in price to conventional lithium-ion batteries by the mid-2030s.

Solid-State Battery Manufacturing Is Making Progress

Although solid-state batteries are still an emerging technology, they are already moving beyond the laboratory. QuantumScape, one of the United States’ most advanced solid-state battery companies, says it is close to bringing its products to market.

Backed by Bill Gates, QuantumScape was launched in Silicon Valley in 2010 to develop batteries built around a ceramic material compatible with lithium. The design does not form dendrites, which can damage batteries and create safety risks. “Then it took us about 10 years to learn how to process it to meet all the other requirements,” says Tim Holme, QuantumScape’s co-founder and chief technology officer.

In 2025, the startup announced a large-scale manufacturing process for rapidly producing and heat-treating the ceramic electrolytes used in its batteries. “No one in the ceramics field has done this before,” Holme claims. Ceramic production has traditionally involved slowly heating starting materials in ovens over several days. QuantumScape says it has reduced that process to minutes.

Several other companies are pursuing solid-state battery technology. Toyota, the world’s largest automobile manufacturer, has researched solid-state batteries since 2010 and is partnering with global energy and oil company Idemitsu Kosan on a pilot plant. The partnership promises electric vehicles capable of traveling up to 745 miles on a charge and recharging in less than 10 minutes, provided the technology performs as expected.

In China, battery giant CATL, which accounts for about 40% of the global battery market, is actively developing all-solid-state batteries. Approximately $2.6 billion was planned for solid-state battery research programs in 2024 alone. Meanwhile, Mercedes installed solid-state batteries in one of its EQS sedans last fall. After driving 750 miles nonstop, the car still had some range remaining.

Will Solid-State Batteries Reach the Mass Market?

The potential market is enormous, making automotive batteries an attractive area for investment. However, early solid-state electric-vehicle batteries will likely cost more than today’s lithium-ion batteries. Even a modest increase in manufacturing costs is typically passed on to consumers.

Grid-storage buyers serving the growing energy needs of data centers may also hesitate to adopt technologies that have not yet reached the required cost levels. Solid-state batteries could nevertheless become more attractive if their longer-lasting energy storage outperforms the typical eight-hour duration of existing systems.

A Strategy for Scaling Solid-State Batteries

Some companies are following a strategy used by other emerging technologies: targeting profitable short-term markets to finance development and reduce costs. Solid-state battery companies such as California-based Solid Energy and Arizona-based Sion Power are considering supplying batteries to the aviation and military sectors.

“These areas are less cost-sensitive and typically require lower production volumes,” says Evelina Stoikou, lead analyst for battery technology and supply chain at BloombergNEF. “This is a good way to prove a concept, fund a pilot plant that can bring it to fruition, and ultimately scale it up.”

Solid-State Battery Progress Meter: 7/10

The technology is working, investment is available and demand is developing. However, significant manufacturing and cost uncertainties remain before solid-state batteries can reach widespread commercial use.