Solid-state batteries edge toward market after a decade of false starts

QuantumScape claims a manufacturing breakthrough as Toyota, CATL and Mercedes push the technology forward

By LineZotpaper

Published21 October 2026

Read Time3 min

Solid-state batteries, long billed as a few years away and capable of reshaping electric transport, are closing in on commercial reality. Bill Gates-backed QuantumScape says it has solved a ceramics manufacturing problem that has stalled the industry, while Toyota, CATL and Mercedes all reported progress in the past year.

The solid-state battery, which replaces the liquid electrolyte in lithium-ion packs with a solid ceramic or polymer, promises faster charging, longer life, more energy in smaller spaces and cooler operation, addressing the fire risk that has dogged conventional batteries.

For more than a decade the technology has been "just a few years away." In the laboratory it works, but two problems have held it back: dendrites and manufacturing at scale.

Dendrites are needlelike filaments that grow through the solid electrolyte during charging and eventually short the cell. Solid electrolytes are supposed to physically block them, but many crack as the projections break through. Mass production also requires large quantities of defect-free ceramic sheets and dry rooms, because the electrolytes react with water.

One American company says it has tackled both. QuantumScape, launched in Silicon Valley in 2010 and backed by Bill Gates, built its battery around a ceramic material it says is compatible with lithium, meaning no dendrite formation.

"We spent, then, like 10 years learning how to process it to satisfy all of the other requirements," says Tim Holme, cofounder and chief technology officer.

In 2025 the startup announced a proprietary, large-scale method for quickly producing and heat-treating the ceramic electrolytes. Where ceramics have been slowly cooked in ovens over days for 10,000 years, QuantumScape says it has shortened that to several minutes.

"Nobody has ever done this in the field of ceramics before," Holme claims.

Others are moving too. Toyota, which launched a research program in 2010, is partnering with energy company Idemitsu Kosan on a pilot plant, promising cars that can travel up to 745 miles after charging for 10 minutes or less. In China, CATL, the maker of roughly 40% of the world's batteries, put nearly $2.6 billion into solid-state research in 2024 alone. Mercedes equipped one of its EQS sedans with solid-state batteries last fall; after driving nonstop for 750 miles, the car still had range to spare.

Cost remains the open question. The first solid-state EV batteries will inevitably be more expensive, since any uptick in cost is typically passed on to buyers. Grid storage operators, facing the growing demands of data centers, may hesitate to adopt a technology that has not yet come down the cost curve, though the promise of storage lasting longer than lithium-ion's typical eight hours could help persuade them.

Some companies are taking a page from the fusion playbook: focus on near-term markets with better margins to fund development. Solid Energies of California and Arizona-headquartered Sion Power are looking at selling batteries to the aviation industry or the military.

"Those are sectors that are less sensitive to cost, and they typically require lower volumes as well," says Evelina Stoikou, head analyst for battery technologies and supply chains at the consultancy BloombergNEF. "It's a good way to prove your concept, then go through and fund the pilot plant where you can make that and eventually scale up."

Analysis

Why This Matters

Solid-state batteries could cut fire risk and improve range and charging for electric vehicles, easing the shift away from fossil fuels
Grid storage that lasts beyond lithium-ion's typical eight hours would help meet the rising demands of data centers
If costs stay high early, the first benefits may flow to premium vehicles and niche buyers such as aviation and the military

Background

Lithium-ion batteries have dominated energy storage for decades, powering everything from personal electronics to large grid systems. Their liquid electrolyte carries a fire risk and limits how fast packs can charge and how long they last. Solid-state designs replace that liquid with a ceramic or polymer, but dendrite growth and difficult mass manufacturing have kept them out of the market despite years of laboratory success. Most producers expect prices to fall in line with lithium-ion packs sometime in the mid-2030s.

Key Perspectives

[Automakers and manufacturers]: Companies including QuantumScape, Toyota and CATL argue the manufacturing hurdles are being solved and that scale will bring costs down. QuantumScape says its fast ceramic production method is unprecedented in the field. [Cost-sensitive buyers]: Grid storage operators and mainstream EV buyers may wait before adopting a technology that has not yet come down the cost curve, and early batteries will carry a price premium. [Market analysts]: BloombergNEF's Evelina Stoikou suggests aviation and military customers, which are less sensitive to cost and need lower volumes, could fund the pilot plants and help the technology scale up.

What to Watch

Whether QuantumScape's rapid ceramic production method holds up at large scale
Toyota's pilot plant with Idemitsu Kosan and its promised 745-mile range after 10-minute charging
The pace of cost declines toward lithium-ion parity, expected by most producers in the mid-2030s

Sources

Solid-state batteries · MIT Technology Review

Checked

12 claims in this story checked against 1 source: 7 supported.

Show each claim

Partly supportedSolid-state batteries are edging toward market after a decade of false starts.MIT Technology Review: “Solid-state batteries have been “just a few years away” for more than a decade now. ... Solid-state batteries have already seen high-profile missteps. But one of America’s most advanced solid-state-battery companies says it’s closing in on being able to bring its product to market.”
Partly supportedQuantumScape claims a manufacturing breakthrough, while Toyota, CATL and Mercedes are pushing the technology forward.MIT Technology Review: “In 2025, the startup announced a proprietary, large-scale manufacturing method for quickly producing and heat-treating the ceramic electrolytes used in its batteries. ... Plenty of other companies are pushing the tech forward as well.”
Partly supportedQuantumScape says it has solved a ceramics manufacturing problem that stalled the industry.MIT Technology Review: “But one of America’s most advanced solid-state-battery companies says it’s closing in on being able to bring its product to market. ... In 2025, the startup announced a proprietary, large-scale manufacturing method for quickly producing and heat-treating the ceramic electrolytes used in its batteries.”
Partly supportedToyota, CATL and Mercedes all reported progress in the past year.MIT Technology Review: “Toyota ... launched a research program on solid-state batteries way back in 2010. It’s now partnering ... on a pilot plant... In China, CATL ... [was] pumping nearly $2.6 billion into a research program in 2024 alone. Mercedes, meanwhile, equipped one of its EQS sedans with solid-state batteries last fall...”
SupportedTim Holme said, “We spent, then, like 10 years learning how to process it to satisfy all of the other requirements.”MIT Technology Review: ““We spent, then, like 10 years learning how to process it to satisfy all of the other requirements,” says Tim Holme, QuantumScape’s cofounder and chief technology officer.”
SupportedHolme said, “Nobody has ever done this in the field of ceramics before.”MIT Technology Review: ““Nobody has ever done this in the field of ceramics before,” Holme claims.”
SupportedQuantumScape says it shortened ceramic production from days of oven cooking to several minutes.MIT Technology Review: “For 10,000 years, producing ceramics has involved slowly cooking the starting materials in an oven over the course of days. “We figured out a way to shorten that down to several minutes,” he says.”
SupportedToyota is partnering with Idemitsu Kosan on a pilot plant, promising cars that can travel up to 745 miles after charging for 10 minutes or less.MIT Technology Review: “It’s now partnering with the global energy and petroleum company Idemitsu Kosan on a pilot plant, promising cars that can travel up to 745 miles after charging 10 minutes or less—a huge leap, if it works out.”
SupportedCATL put nearly $2.6 billion into solid-state research in 2024 alone.MIT Technology Review: “In China, CATL, the giant behind roughly 40% of the global battery market, is aggressively pursuing solid-state batteries too, pumping nearly $2.6 billion into a research program in 2024 alone.”
Partly supportedCATL makes roughly 40% of the world’s batteries.MIT Technology Review: “CATL, the giant behind roughly 40% of the global battery market”
SupportedMercedes equipped an EQS sedan with solid-state batteries last fall, and it still had range after driving nonstop for 750 miles.MIT Technology Review: “Mercedes, meanwhile, equipped one of its EQS sedans with solid-state batteries last fall; after driving nonstop for 750 miles, the car still had some range to spare.”
SupportedEvelina Stoikou said, “Those are sectors that are less sensitive to cost, and they typically require lower volumes as well,” and called it “a good way to prove your concept, then go through and fund the pilot plant where you can make that and eventually scale up.”MIT Technology Review: ““Those are sectors that are less sensitive to cost, and they typically require lower volumes as well,” says Evelina Stoikou, head analyst for battery technologies and supply chains at the consultancy BloombergNEF. “It’s a good way to prove your concept, then go through and fund the pilot plant where you can make that and eventually scale up.””