Solid State Battery Market Size

Solid State Battery Market Size

Solid State Battery Market was valued at USD 826.8 million in 2023 and is projected to expand at more than 38.2% CAGR from 2024 to 2032, owing to the burgeoning demand for electric vehicles.

Mounting expenditure on consumer electronics globally is driving the industry growth. The increased miniaturization of portable electronic devices, including laptops, smart cards, RFID, mobile phones, tablets, and other wearable technologies, has fostered the demand for SSB due to their narrow rectangular designs, quicker charging times, and longer battery lives, which is boosting investments in portable electronic gadgets. In 2021, Lenovo, a consumer electronic leader, sold about 268 million units of laptops impelled by the rising demand for notebook PCs.

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Furthermore, the growth in the renewable energy sector is also fostering the industry outlook. Solid state batteries are likely to become more prevalent in this sector as various nations are defining their renewable energy objectives to cut carbon emissions and provide efficient and clean power generation. For instance, in January 2023, Solid Power, a solid-state battery manufacturer, received an award from the U.S. Department of Energy (DOE) ARPA-E alliance to resume production of nickel and cobalt-free SSB cells with an expected funding of USD 5.6 million under the Electric Vehicles for American Low-carbon Living program.

High initial costs may restrain industry progression

Despite a positive outlook for product adoption, the solid state battery market faces a major hurdle in the form of extensive capital investment required for the production and distribution of solid state batteries. The development of these batteries is challenging and costlier compared to conventional batteries, which is hampering product uptake. The vast potential of lithium and its easy availability can further impede product demand. Nonetheless, continuous efforts by manufacturers to leverage the benefits of solid state batteries are likely to help them overcome this issue.