Due to the superior performance of solid-state batteries in terms of energy density, safety and cycle life compared to traditional liquid electrolyte lithium batteries. This makes solid-state batteries widely regarded as the best battery technology path for the next generation.
And although it will be some time before full-solid-state batteries are mass-produced and installed in vehicles, semi-solid-state batteries are now on the agenda, so it is necessary to layout in advance.
Here are three companies that are currently at the forefront of developing solid-state battery technology, and investors can start paying close attention to them now.
QuantumScape (NYSE:QS) is focused on bringing breakthrough battery technology to market in the next few years, with a focus on solid-state batteries capable of charging from zero to 80% in 15 minutes, which is much faster than the charging time for most existing lithium-ion electric vehicle batteries. The company is investing heavily in the development of solid-state battery technology, which has the potential to extend the range of electric vehicles and reduce charging times. However, the company is still in the investment phase and has yet to start generating revenue, with mass production expected to begin within a few years.
The good news is that the company is already ahead of its main goal of 2024, which is to start delivering Alpha-2 prototype batteries to customers. Given its disruptive potential and the encouraging technology milestones achieved, QuantumScape has the potential to be a battery stock that generates several times the returns if all goes well.
Solid Power (NASDAQ:SLDP) is a Colorado-based startup that is eyeing to begin mass production of solid-state batteries by 2024, with the backing of BMW and Ford Motor Company. Management recently revealed plans to begin pilot production soon, with the goal of delivering sample batteries to Ford and BMW by the end of the year.
One of Solid Power’s strengths is its ability to produce solid-state batteries using existing manufacturing tools and processes currently used for lithium-ion battery cells. This approach has the potential to allow Solid Power to save significantly on capital investment in plant infrastructure compared to companies such as QuantamScape.
However, this strategy also means that Solid Power may have less direct control over the manufacturing process. Investing in Solid Power’s battery stock is largely based on its future potential. The company’s manufacturing methods, coupled with technology that is still in the validation phase, present a degree of investment risk. However, the company is in a good financial position, with $146 million in cash and $232 million in long-term investments, enough to support the company’s operations through 2026. The company expects its cash burn rate to decrease in the future as it reaches certain growth targets with its partners.
In summary, Solid Power stock should have a lower risk profile than many other solid-state battery stocks given the liquidity on the balance sheet and existing partnerships.
Toyota (NYSE:TM) has not only invested heavily in solid-state battery technology, it has also made significant progress, having filed more than 1,000 patents in the field. As a staunch advocate of solid-state battery technology, Toyota has publicly announced that it plans to launch its first car with solid-state batteries in 2025, envisioning it as a hybrid model.
Toyota executives say the latest batteries will be able to travel up to 750 miles per charge and take just 10 minutes to recharge, making them truly touch-and-go. This will address some of the biggest concerns of electric car buyers, namely range and charging time. What’s more, Toyota plans to partner with Idemitsu Kosan (OTCMKTS:IDKOY) to produce solid-state batteries. It’s unclear when solid-state batteries will be commercially available on a large scale.
However, Toyota’s current technological advances and collaborations are enabling the company to capitalise on this future-generation battery technology. As the world’s largest automaker, Toyota can promote solid-state batteries as one of the most competitive electric vehicle solutions available today.
If you are interested in solid-state battery technology, please pay close attention to First Phosphate (CSE: PHOS) (FSE: KD0). This is the only publicly listed company that is fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry. LFP batteries operate similarly to other lithium-ion batteries. They have the advantage of being non-toxic, having superior fire safety, longer cycle life and lower cost. The company is the Building Block for a North American LFP Battery Ecosystem, the company holds a total of 1,500+ sq. km of royalty-free land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada consisting of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid high concentrations of harmful elements.
Disclaimer: NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.
