China is making moves in the battery world, investing a whopping $A1.3 billion into solid-state battery research for electric vehicles. But are batteries following Moore’s Law? Morgan Stanley thinks they could be on a similar development path, with advancements in battery technology potentially doubling every two years. If solid-state battery development sticks to this trend, we might see commercialization between 2028-2030.
What?
China is pouring money into solid-state battery tech for electric vehicles, aiming to overcome the challenges associated with higher energy density but difficult mass production of all-solid-state batteries (ASSBs). With this investment, China is primed to maintain its dominance in the global battery industry.
Why does it matter?
Morgan Stanley’s analysis suggests that battery technology could be on a compounding growth trajectory akin to Moore’s Law, with advancements improving EV battery performance significantly every two years. China’s strategic investment in solid-state R&D not only highlights its commitment to innovation but also signals its intentions to lead the way in the global battery market.
How is it going to shape the future?
By aligning with the potential of Moore’s Law for batteries, solid-state technology could see commercialization sooner rather than later, revolutionizing the electric vehicle industry. However, protectionist measures in the US and Europe against Chinese EVs could hinder progress in decarbonizing road transport. With transport emissions on the rise globally, the need for affordable EVs is more pressing than ever. The move to restrict access to affordable electric vehicles could be a detrimental setback in the fight against climate change, leaving legacy car manufacturers scrambling to keep up with the technological shift.
Daniel Bleakley’s insights shed light on the urgency of transitioning to electric vehicles and the adverse effects of protectionist policies on the global decarbonization effort. As the world grapples with reducing emissions and shifting towards sustainable transportation, the investments and decisions made today will shape the future of the automotive industry and our planet’s health.