Global Lithium Solid-State Battery Market By Type (Polyethylene-oxide (PEO), Lithium Phosphorus Oxy-Nitride (LiPON), Sulfide Glass), By End-Use (Automotive, Portable Electronics, Residential, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Lithium Solid-State Battery Market size is expected to be worth around USD 19.4 Billion by 2034, from USD 2.0 Billion in 2024, growing at a CAGR of 25.5% during the forecast period from 2025 to 2034.

The global lithium solid-state battery (SSB) industry is undergoing a structural transformation, fueled by rapid technological innovation and favorable policy support. Solid-state batteries, which employ solid electrolytes in place of conventional liquid or gel-based systems, provide key advantages such as superior energy density, enhanced thermal stability, and extended lifecycle. These characteristics make SSBs highly attractive for high-demand applications, particularly in electric vehicles (EVs), consumer electronics, and stationary energy storage integrated with renewables.

In the Indian context, strong government backing is accelerating the growth of the domestic battery ecosystem. Under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC), India is targeting 50 GWh of domestic manufacturing capacity by 2026, a move designed to reduce import dependence and promote value chain integration. Furthermore, the FY2025–26 Union Budget introduced customs duty exemptions on 35 capital goods specifically used in EV battery production, thereby lowering the capital investment barrier for local manufacturers.

One of the primary demand-side drivers for SSBs is the increasing global adoption of electric mobility. According to the International Energy Agency (IEA), 10 million EVs were sold globally in 2022, marking a 55% year-on-year growth. Projections suggest that EVs could account for 60% of new car sales by 2030, significantly boosting demand for next-generation batteries like SSBs, which offer both higher safety and better performance than traditional lithium-ion solutions.

Government policies continue to play a pivotal role in shaping the battery value chain. For instance, India’s Electric Mobility Promotion Scheme 2024 (EMPS 2024) has earmarked INR 500 crore to accelerate EV adoption through targeted subsidies across different vehicle segments. Such initiatives are expected to drive both consumer adoption and upstream investments in battery technology.

Additionally, efforts toward supply chain localization are gaining traction. To secure raw material availability, the Indian government removed customs duties on waste and scrap of 12 critical minerals, including lithium-ion battery waste, in early 2024. This step ensures an uninterrupted supply of essential inputs for battery manufacturing while fostering circular economy practices within the sector.

Key Takeaways

• Lithium Solid-State Battery Market size is expected to be worth around USD 19.4 Billion by 2034, from USD 2.0 Billion in 2024, growing at a CAGR of 25.5%.
• Lithium Phosphorus Oxy-Nitride (LiPON) held a dominant market position, capturing more than a 46.3% share.
• Automotive held a dominant market position, capturing more than a 48.4% share in the global lithium solid-state battery market.
• North America emerged as the leading region in the global lithium solid-state battery market, securing a dominant share of 43.5%, equivalent to approximately USD 0.87 billion.

By Type

Lithium Phosphorus Oxy-Nitride (LiPON) dominates with 46.3% share due to its high stability and compatibility in solid-state batteries.

In 2024, Lithium Phosphorus Oxy-Nitride (LiPON) held a dominant market position, capturing more than a 46.3% share in the global lithium solid-state battery segment by type. LiPON’s stronghold in the market can be attributed to its excellent electrochemical stability, superior interface compatibility with lithium metal anodes, and its proven performance in thin-film battery applications.

These properties have made LiPON a preferred choice for manufacturers focused on building safer, longer-lasting batteries for consumer electronics and electric vehicles. The technology continues to be widely adopted across research and commercial prototypes in 2025, reflecting growing confidence in its scalability and long-term reliability.

By End-Use

Automotive leads with 48.4% share in 2024, driven by rising demand for safer and energy-dense EV batteries.

In 2024, Automotive held a dominant market position, capturing more than a 48.4% share in the global lithium solid-state battery market by end-use. This dominance is primarily fueled by the growing push toward electric vehicles, where the demand for batteries offering higher energy density, faster charging, and improved safety is at an all-time high.

Solid-state batteries, particularly in the automotive sector, are seen as a game-changer in overcoming range anxiety and thermal runaway issues. As governments worldwide tighten emission norms and offer incentives for EV production and adoption, the automotive sector continues to anchor the majority of investments in solid-state battery development through 2025.

Key Market Segments

By Type

• Polyethylene-oxide (PEO)
• Lithium Phosphorus Oxy-Nitride (LiPON)
• Sulfide Glass

By End-Use

• Automotive
• Portable Electronics
• Residential
• Others

Drivers

Government Incentives Fueling the Growth of Lithium Solid-State Battery Market

One of the primary drivers propelling the lithium solid-state battery market is the robust support from government initiatives aimed at accelerating electric vehicle (EV) adoption and enhancing domestic battery manufacturing capabilities.

In 2024, the Indian government introduced the Electric Mobility Promotion Scheme (EMPS) 2024, allocating ₹500 crore to subsidize the purchase of electric two-wheelers and three-wheelers. This scheme aimed to support the adoption of 3,72,215 EVs, including 3,33,387 two-wheelers and 38,828 three-wheelers, by providing financial incentives to buyers. The initiative emphasized the use of advanced battery technologies, thereby encouraging manufacturers to invest in solid-state battery development.

Building upon this, the government launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme in September 2024, with a substantial outlay of ₹10,900 crore over two years. This comprehensive program aims to support the deployment of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses. Additionally, ₹500 crore each has been earmarked for the deployment of e-ambulances and e-trucks, sectors that demand high-performance and reliable battery solutions, such as solid-state batteries.

To further bolster domestic manufacturing, the Union Budget 2025-26 proposed exemptions on customs duties for 35 additional capital goods used in EV battery production. This move is intended to reduce production costs and encourage the establishment of local manufacturing units, thereby decreasing dependence on imports and fostering innovation in battery technologies.

Restraints

High Production Costs and Manufacturing Challenges Hinder Widespread Adoption

One of the significant challenges facing the lithium solid-state battery market is the high production cost associated with manufacturing these advanced batteries. Unlike traditional lithium-ion batteries, solid-state batteries require complex fabrication processes and expensive materials, which contribute to their elevated costs.

For instance, the production of solid-state batteries involves the use of solid electrolytes, which are more costly to produce than the liquid electrolytes used in conventional batteries. Additionally, the manufacturing process demands stringent environmental controls to prevent contamination, further increasing operational expenses. These factors collectively result in solid-state batteries being significantly more expensive, making it challenging for manufacturers to achieve cost parity with existing battery technologies.

Moreover, scaling up production to meet commercial demands presents additional hurdles. The current manufacturing infrastructure is primarily designed for traditional batteries, and adapting it for solid-state battery production requires substantial investment. This includes the development of new equipment and processes tailored to handle the unique requirements of solid-state materials.

Despite these challenges, governments and industry stakeholders are actively working to address these issues. For example, the Indian government has introduced policies to support battery manufacturing, including customs duty exemptions on capital goods used in the production of electric vehicle batteries. These initiatives aim to reduce manufacturing costs and encourage the adoption of advanced battery technologies.

Opportunity

Government-Backed Manufacturing Initiatives: A Catalyst for Solid-State Battery Market Growth

One of the most significant growth opportunities in the lithium solid-state battery market lies in the robust support from government-backed manufacturing initiatives. These initiatives are fostering an environment conducive to innovation and large-scale production, particularly in countries like India.

The Indian government has launched the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approving a substantial budgetary outlay of ₹18,100 crore (approximately USD 2.4 billion). This program aims to establish a competitive domestic battery manufacturing ecosystem, reducing reliance on imports and promoting self-reliance in energy storage technologies.

Additionally, the Ministry of Heavy Industries has signed agreements with major industry players, such as Reliance New Energy Battery, to set up cell manufacturing facilities. These collaborations are expected to accelerate the development and commercialization of solid-state battery technologies in India.

These government initiatives are complemented by policy measures like reduced Goods and Services Tax (GST) rates on electric vehicles and batteries, as well as import duty exemptions on critical raw materials. Such incentives are designed to make battery manufacturing more affordable and attractive for investors and manufacturers.

Trends

Government-Driven Investments Fueling Solid-State Battery Advancements

A significant trend shaping the lithium solid-state battery market is the surge in government-led investments aimed at accelerating research, development, and commercialization of this advanced technology. These initiatives are fostering innovation and establishing a robust foundation for the future of energy storage.

Similarly, the United States is making significant strides. The Inflation Reduction Act allocates $3 billion to enhance domestic production of advanced batteries and materials for EVs across 14 states. This initiative aims to reduce reliance on foreign supply chains and bolster the U.S. position in the global battery market.

These government initiatives are complemented by policy measures like tax credits and incentives for EV adoption. For instance, the Inflation Reduction Act offers tax credits up to $7,500 for new EV purchases, encouraging consumers to transition to electric mobility and stimulating demand for advanced battery technologies.

Regional Analysis

North America Leads Solid-State Battery Market with 43.5% Share in 2024

In 2024, North America emerged as the leading region in the global lithium solid-state battery market, securing a dominant share of 43.5%, equivalent to approximately USD 0.87 billion. This leadership is driven by significant investments in electric vehicle (EV) technology, robust research and development activities, and supportive government policies aimed at advancing clean energy solutions.

The United States plays a pivotal role in this regional dominance. Major automotive manufacturers, including General Motors and Ford, are actively investing in solid-state battery technologies to enhance EV performance and safety. For instance, General Motors has invested $650 million in the Thacker Pass lithium mine in Nevada, aiming to secure a domestic supply of lithium, a critical component for battery production.

Government initiatives further bolster the market. The U.S. Department of Energy has prioritized research into next-generation batteries, including solid-state solutions, to enhance energy storage capabilities. Additionally, the Inflation Reduction Act provides tax incentives for EV purchases and investments in domestic battery manufacturing, fostering a conducive environment for market growth.

Canada also contributes significantly, with projects like the Snow Lake lithium mine in Manitoba, which aims to produce enough lithium to power approximately 500,000 EVs annually. This project underscores the region’s commitment to developing a sustainable and self-reliant battery supply chain.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Altairnano is known for its advanced lithium-titanate battery technologies and has made progress toward integrating solid-state elements in its energy storage solutions. Headquartered in Nevada, USA, the company focuses on grid-scale storage and transportation sectors, where battery safety and fast charging are critical. While Altairnano primarily serves public utilities and heavy-duty transport, its growing R&D in solid-state chemistry is aimed at improving energy density and cycle life. Their work aligns with the global shift toward next-generation battery innovation.

Ampcera Inc., based in the U.S., is a prominent developer of solid-state electrolyte materials, especially sulfide- and oxide-based ceramics. The company supplies materials for prototype-scale and commercial lithium solid-state batteries. Its key strength lies in scalable, cost-efficient electrolyte technology, which supports both lithium metal and silicon anodes. Ampcera has ongoing collaborations with EV and aerospace OEMs to improve battery safety and performance. It plays a strategic role in enabling high-capacity energy storage systems through cutting-edge materials science.

Beijing Weilan New Energy Technology is one of China’s leading innovators in solid-state lithium battery technology. The company has attracted attention through partnerships with major Chinese automakers to supply high-performance solid-state cells for EVs. Its solid-state solutions boast improved safety and extended cycle life, with prototypes achieving energy densities of over 360 Wh/kg. Backed by strong domestic support and industrial demand, Weilan is expected to contribute significantly to China’s ambitions of leading the global battery transition.

Top Key Players in the Market

• Altairnano
• Ampcera Inc.
• Beijing Weilan New Energy Technology Co., Ltd
• Bollore SE
• BYD Co. Ltd.
• Future Electronics
• Ganfeng Lithium Group Co., Ltd
• Hitachi Zosen Corp.
• Ilika
• Ion Storage Systems
• Johnson Energy Storage Inc.
• Murata Manufacturing Co. Ltd.
• Poly Plus Battery Co.
• ProLogium Technology Co. Ltd.
• Samsung SDI Co. Ltd.

Recent Developments

In May 2025, Ampcera launched breakthrough nano sulfide solid electrolytes and began global shipments to solid-state battery manufacturers, marking a significant milestone in the commercialization of its technology.

In 2024, Blue Solutions, a subsidiary of Bolloré SE, significantly advanced its position in the lithium solid-state battery market. The company announced a €2 billion investment to establish a gigafactory in Mulhouse, France, aiming for a production capacity of 25 GWh by 2030. This facility is set to produce next-generation solid-state batteries offering 20-minute charging times and a driving range of up to 1,000 km, with energy densities 30–40% higher than current top lithium-ion cells.

Report Scope