Imagine an electric car charges in minutes, not hours, and can travel from New York to LA on a single charge. Although it’s still in its early stages, that’s the potential of solid-state battery technology. These next-gen power cells would also make EVs safer by reducing fire risk, thanks to a much wider stable thermal range. It’s no wonder companies of all sizes are vying for a slice of this market. In this guide, we’ve tiered the top solid-state battery stocks based on their pure-play exposure. Our ranking methodology considers business model, revenue concentration, and vertical integration.
Tier 1: Pure-Play Solid-State Battery Developers
These companies are going all-in on solid-state batteries. That usually means developing the best solid-state batteries to license to car companies or big battery makers. Investors who want the full upside – and risk – can consider these solid-state battery stocks.
QuantumScape (QS)
QuantumScape (QS) offers investors exposure to the bleeding edge of solid-state battery technology with the potential for high risk, high reward.
QuantumScape develops ceramic-based solid-state batteries, targeting the high-end automotive market. These types of batteries have the potential for extremely high density and performance, and much faster charging times. It’s bleeding-edge technology, which means high-risk, high-reward. Compared to other solid state battery stocks on this list, QS has more technical hurdles to overcome.
That said, QuantumScape invests heavily in R&D, especially in cathode loading (i.e. how much “active” ingredient you can cram into the battery). Their prototype cell had over 95% energy retention after 1,000 full cycle equivalents. This is huge because current lithium-ion EV batteries degrade significantly after 500 charges.
For a pure-play solid state battery stock, strong partnerships are a key signal. And QS has at least one major player on their side. In 2012, Volkswagen Group became one of QS’s early investors, and then doubled down in 2018 and again in 2020. But it’s not just funding – Volkswagen is also building a pilot production line for QS’s solid-state cells, with the room to scale up to 20 gigawatt-hours. These types of partners will be key for bringing such a novel technology to market.
Solid Power (SLDP)
Solid Power (SLDP) is an attractive play for investors seeking a balance of innovation and reduced manufacturing risk.
Solid Power has a two-part strategy for efficient growth. First, they focus on perfecting their sulfide-based solid-state battery design. Then, they partner with major automakers to test it and handle large-scale manufacturing. This lets them tap into existing factories and expertise, saving them the huge cost of building their own.
Secondly, Solid Power aims to become a key supplier of their special sulfide electrolyte. This material is extra conductive, meaning faster charging, more battery power, and potentially smaller and lighter batteries that hold the same energy. This two-pronged approach could open up multiple ways for them to make money.
Solid Power is making real progress. They’ve increased electrolyte production to 1.1 metric tons per month and delivered their first EV cells for testing – a major step towards selling their batteries commercially. The company’s partnerships with big names like Ford, BMW, and SK On give them a strong position within the industry.
Ilika (IKA.L)
Ilika (IKA.L) offers investors a more targeted bet, with a focus on licensing their technology rather than taking on the full risks of mass production.
Ilika, a UK company, develops solid-state batteries for EVs, medical devices, and industrial sensors. Ilika has a line of tiny solid-state “Stereax” batteries, which are used for medical devices and industrial wireless sensors. They’re now applying that experience to building larger batteries as well: the Goliath battery.
What makes Ilika’s Goliath battery unique in this space is the addition of a silicon anode to further improve performance. Silicon has a theoretical capacity ten times greater than traditional graphite anodes. This means it can hold more lithium ions per unit of weight or volume, increasing energy density. Silicon’s structure could also lead to much faster charging times if paired with the right electrolyte.
Ilika has a focused licensing model. They focus on research and development rather than full-scale manufacturing. They then license their unique Goliath solid-state battery design to manufacturers. Thus, Ilika offers investors a way to enter the solid state battery market with less exposure to manufacturing risks.
Tier 2: Established Companies with Solid-State Battery Investments
These big, well-known car brands are investing heavily in solid-state battery technology. As automakers, they’re also well positioned to integrate these batteries into their EVs, once available. Investors who want a more balanced exposure can consider these solid-state battery stocks.
Toyota (TM)
Toyota (TM) is a compelling choice for investors seeking a major automaker with strong potential to successfully scale this technology.
Toyota is already a household name known for its reliable cars. The Japanese automaker is now developing solid-state batteries for its future electric vehicles. The company is working towards batteries that could potentially provide up to 745 miles of range, with ambitions to extend this to 900 miles.
Toyota stands out in the solid-state battery race due to its existing massive manufacturing capabilities. Once the technology matures, Toyota could be one of the first to produce it at scale. The company is focused on sulfide-based solid electrolytes and developing methods for mass production with the goal of commercial sales by 2027. These methods include innovative ideas like giga-casting and self-propelling assembly lines. Toyota has also partnered with Panasonic to further strengthen its solid-state development efforts.
Nissan (NSANY)
Nissan (NSANY) seeks to be the first to bring affordable solid-state batteries to end consumers, and could have a potential early-mover advantage in the EV market.
Nissan is actively developing solid-state batteries for their electric vehicles. They aim to use these batteries to offer longer range, faster charging times, and lower costs compared to current options. Unlike some competitors, Nissan is developing these batteries in-house, aiming for full control of the value chain. Basically, Nissan wants to be the first to get solid-state batteries into cars at prices regular people can afford.
Nissan’s goal is to launch their first solid-state battery car by 2028. They’ve even opened a prototype production facility for 2025, a major step towards making this happen. Nissan still faces challenges in scaling up production and driving costs down, but their focus and ambition position them as a serious player in the race for better EV batteries.
Hyundai (HYMTF)
Hyundai (HYMTF) has a dual approach of collaboration and internal development, giving investors exposure to potential breakthroughs from multiple angles.
Hyundai is in the solid-state battery race with a two-pronged approach – collaboration and internal development. They have partnered with companies like Factorial Energy, a US-based solid-state battery specialist. This allows them to tap into dedicated expertise and share research costs.
The company has also applied for their own solid-state battery patents. Hyundai’s battery stands out with its focus on maintaining constant pressure within each cell. This is to address the key challenge of keeping contact between parts as they expand/contract during charging/discharging.
BYD (BYDD.F)
BYD (BYDD.F) is not only a bet on solid-state batteries, but also a bet on the Chinese EV market as a whole.
BYD is a major EV maker in China with a growing interest in solid-state batteries. Unlike many other companies investing in solid-state batteries, BYD is highly vertically integrated. The company produces everything from batteries to whole vehicles, potentially giving them an edge in scaling new technologies like solid-state.
BYD’s current Blade Battery, a lithium-ion design, has been recognized for its safety and energy density. It’s passed extreme tests like nail penetration and overcharging without fire or explosion. Its safety features and compact design make it a distinctive offering in the EV market, especially for smaller EV models.
BYD already has a strong brand and distribution network in China, and is expanding with plans to build its first European car factory in Hungary, partnering with the Hungarian government. The company’s success has even attracted investment from high-profile investors like Warren Buffett’s Berkshire Hathaway.
Tier 3: Potential, But Sensible Solid-State Involvement
These are companies that could indirectly benefit from the growth of the solid-state battery market. Or, they could sensibly pivot to the space, bringing transferable expertise for a competitive edge. Investors who only want to dip their toes can consider these solid-state battery stocks.
Albemarle (ALB)
Albemarle (ALB) allows investors to bet on the essential supply chain for solid-state batteries, as it benefits from increased lithium demand.
Albemarle is a global leader in lithium mining. Lithium is essential for batteries, and it’s going to be even more crucial for solid-state batteries. ALB is a unique solid-state battery stock in that it’s a play on the raw material supply side.
The company operates in key regions across South America, Australia, and North America. This wide reach gives them a big advantage in securing lithium supplies and reaching customers worldwide. The company is vertically integrated, from mining lithium ores to producing lithium compounds. This means that as electric vehicles drive up lithium demand, Albemarle will be especially well positioned to benefit.
Panasonic (PCRFY)
Panasonic (PCRFY) takes a cautious approach and could appeal to investors seeking established expertise within the battery industry.
Panasonic is a big name in batteries, but they’re taking a cautious approach to solid-state. Unlike startups betting everything on this new tech, Panasonic wants to use their experience as a major lithium-ion battery maker to their advantage. So, instead of building new factories, they’re researching how to adapt their current ones for solid-state. This could potentially speed up how quickly solid-state batteries become widespread. Panasonic is working closely with Toyota to make this happen.
TDK Corporation (TTDKY)
TDK Corporation (TTDKY) brings materials science and miniaturization expertise and could become a key supplier for solid-state battery components.
TDK Corporation might not be a household name, but their expertise could make them a key player in the solid-state battery revolution. They’re not solely focused on batteries, but their deep knowledge of materials science and electronics puts them in a great position to innovate. TDK could be the company that develops a breakthrough solid electrolyte or separator – crucial parts that control how energy moves inside the battery. They’re also experts in miniaturization, and could be crucial for packing this tech into devices like tiny medical implants. Their potential contributions make them a company to watch in the solid-state battery space.
Murata Manufacturing (MRAAY)
Murata Manufacturing (MRAAY) focuses on safe and compact solid-state battery designs for the promising niche of wearables and IoT devices.
Murata Manufacturing (MRAAY) is best known for making electronic components, but they could bring unique skills to the table. Murata’s expertise is in materials science and miniaturization. This could help them design super compact batteries, perfect for powering tiny gadgets. Murata’s tech prioritizes safety and stability, which is key when you’re talking about something worn directly on your body. So while they’re not aiming at the EV market, they could find a strong niche for solid-state batteries in wearables and the IoT.
Freyr Battery (FREY)
Freyr Battery (FREY) is a leader in semi-solid battery technology, which could be a key stepping stone before solid-state battery adoption.
Freyr Battery isn’t directly involved in solid-state batteries currently, but it’s still a company to watch. Freyr is a leader in semi-solid batteries, a key stepping stone towards wider adoption of solid-state ones.
Compared to current liquid batteries, semi-solids are less flammable and less prone to leaking. They also have higher energy density than liquid batteries (albeit as high as solid-state). At the same time, semi-solid batteries are easier to manufacture than pure solid-state ones. While solid-state batteries are promising, they still face hurdles to large-scale production. Semi-solid technology is closer to widespread adoption. Freyr’s expertise in semi-solid technology could give them a strong foundation to move into solid-state batteries in the future.
Solid-state batteries could change the game for electric cars, but keep in mind that this is a long-term play. The technology isn’t ready yet, but the promise of longer range, faster charging, and safer batteries makes it something exciting for investors to watch. The companies we’ve discussed offer different ways to invest in this space. Whether you want the high-risk, high-reward potential of companies focused only on solid-state, the reliability of big carmakers, or the essential role of suppliers, there’s likely a stock out there for you.
