The Battery Boom
Demand for batteries has grown dramatically since 2010, driven largely by electric cars. Sales of EVs hit a record in 2025, accounting for about a quarter of all cars sold globally. Shipping containers packed with batteries are also being used to store electricity from renewable sources like solar. Storage capacity for solar farms has grown significantly in just five years.
This boom has fueled a frenzy in battery research and development. “In the past five years, innovation went very, very fast,” says Teo Lombardo, a former battery chemist and now an analyst for the International Energy Agency. “In 2024, over 40 percent of energy-related patents were on batteries. That’s never happened before. That tells you how quickly the market is evolving, and how much interest there is.”
Lithium-ion batteries remain the gold standard for lightweight, high-powered energy storage in laptops, power tools, smartphones, drones, and electric cars. But two new technologies are emerging: cheap but bulky sodium batteries for budget EVs and grid storage, and expensive but powerful solid-state batteries for luxury EVs. “The battery market is becoming so large that it’s not a matter of one technology replacing another,” says Lombardo. “It’s about specializing to serve different parts of the market.”
Improving Lithium-Ion
Since 1991, lithium-ion battery energy density has tripled, and the price has dropped around tenfold. Today’s EV batteries are almost all lithium-ion, typically providing 250 to 370 miles per charge. A decade ago, most EV batteries were nickel manganese cobalt (NMC) variants, but these have been overtaken by cheaper lithium iron phosphate (LFP) batteries, which have lower energy density but are more heat stable and can be charged in about 10 minutes.
Sodium-Ion: A Cheap Alternative
Sodium is chemically similar to lithium but far more common and easier to source. Sodium-ion batteries also work well at very cold temperatures. However, sodium atoms are larger and heavier, giving these batteries an energy density about [missing] less than lithium-ion, limiting range to about 220 miles for an average SUV. Work is ongoing to optimize components and architecture.
Few tens of thousands of sodium-ion-powered EVs entered the Chinese market in 2023, and the first car slated for mass production was launched in February. Analysts expect sodium to add a cheaper battery option to the mix, potentially with domestic supply chains. “The more technologies you have, the more resilient the market will be,” says Lombardo.
Grid Storage Potential
Sodium’s bulk is no issue for stationary applications. In May, CATL signed a deal to provide 60 gigawatt-hours of sodium batteries for energy storage in Ningde, Fujian — enough to run thousands of homes for a year. Solar farms currently use lithium-ion batteries, but sodium offers easier-to-source ingredients.
Solid-State: Power for the Future
Solid-state batteries swap liquid electrolyte with a solid, like ceramic, eliminating flammable components and enabling higher energy density—potentially doubling range to 620 miles. Toyota and Nissan forecast availability by around 2028. Solid Power is working with BMW and Ford, QuantumScape signed a deal with Honda in June, and CATL is also researching the concept. Some variants are entirely solid; others are hybrid systems with gel-like electrolytes.
“Commercialization by 2030 is probably realistic,” says Lombardo, but they will be expensive, making robotics a viable starter market.
Beyond the Mainstream
Other battery types are also being pursued: flow batteries for grid storage, lithium-sulfur (high energy density but longevity issues), lithium-air (extremely lightweight for aviation), and anodes swapping lithium for magnesium, calcium, aluminum, or zinc. Artificial intelligence is speeding material discovery, but progress remains incremental. “You don’t expect miracles in batteries; they don’t change overnight,” says Jagjit Nanda of SLAC-Stanford Battery Center.
The Environmental Challenge
Researchers are working to eliminate toxic solvents and to recycle batteries. The average EV lifespan is about 15 years, and the boom started around 2020, meaning by 2035 there will be a flood of retired batteries. Responsible recycling is needed to avoid fires and leaching of heavy metals. Lead-acid batteries are already among the most recycled products.
What Lies Ahead
Solid-state batteries currently make up just 1 percent of global manufacturing capacity, and sodium just 4 percent. “By 2035, lithium-ion will definitely still be the majority, sodium-ion will have very likely a share, solid-state might be there,” says Lombardo. After that, “it’s probably too early to say.”