Catch up with China and South Korea? Japan Bets All Solid State Batteries

Our special correspondent in South Korea, Ding Ling, Gao Xin, Song Yi

The Japanese automotive industry, which fell behind rivals such as China and the United States in the automotive new energy vehicle revolution, has recently seen an increase in exposure. At the Tokyo Auto Show, which opened on the 25th, local Japanese automakers announced their latest pure electric models, showing a strong stance of starting anew on this track. However, the news that caught the industry's attention came on the eve of the auto show. On October 12th, Toyota Motor Corporation and Japanese petrochemical company Yuguang Xingsan announced that they will collaborate in mass production of "all solid-state batteries" for electric vehicles, with the goal of achieving practical mass production of "all solid-state batteries" from 2027 to 2028. The collaboration between Toyota and Chuguang Xingsan is believed to be aimed at preempting the dominant position for the "next generation battery revolution".

According to an analysis by Japan's Jiji News Agency, the background of the collaboration between Toyota and Chuguang Xingsan in the research and development of all solid-state batteries is the rapid growth of car companies such as Tesla in the United States and BYD in China in the electric vehicle field. The two companies are seeking to salvage the unfavorable situation through cross-border "Japan alliance".

According to SNErresearch, a global information agency, the top five global power battery installation rankings for the first half of 2023 were dominated by Chinese, Japanese, and Korean companies, with Ningde Times and BYD occupying the top two with over 36% and 13% respectively, followed by LG, Panasonic, and SKon. Four Chinese battery companies, including China Innovation Airlines, Yiwei Lithium Energy, Guoxuan High Tech, and Xinwangda, were also shortlisted in the top ten. The overall market share of six Chinese enterprises has reached 62.6%. Compared to 56.7% last year, it has significantly increased by 5.9 percentage points.

It is worth noting that the main products of Chinese and South Korean enterprises such as Ningde Times, BYD, LG, SK, etc., including ternary lithium batteries and lithium iron phosphate batteries, are all liquid electrolyte batteries. Japanese media believe that if the mass production of all solid-state batteries can be achieved at a low cost, the global electric vehicle market's sphere of influence may be redefined.

All solid-state batteries are considered as power batteries applied in the next generation of electric vehicles, attracting the participation and research of multiple car companies around the world, including European car companies such as Volkswagen, BMW, Mercedes Benz, and Chinese car companies such as BYD, NIO, and GAC. Compared with the liquid electrolyte batteries widely used in electric vehicles, solid-state batteries charge faster, have longer range, and have improved safety and lifespan.

Global Times special correspondent learned from Toyota that the disadvantage of all solid-state batteries lies in their durability. During the charging and discharging process, the battery repeatedly expands and contracts, which easily leads to cracks between the positive electrode, negative electrode, and solid electrolyte, leading to deterioration of battery performance. The cooperation between Toyota and Chuguang Xingsan aims to achieve the goal of balancing performance and durability of products.

The Daily News quoted an analysis by Osaka Public University associate professor Dun Zuoda, who has long been engaged in the research and development of next-generation battery materials, stating that Japan has a highly concentrated number of related enterprises and a strong talent cultivation system in the field of all solid-state battery research and development. In order to maintain its leading position, Japan needs to continue to increase investment in this field.

The announcement of a joint venture between two Japanese companies in the development of next-generation batteries has attracted attention from South Korea. South Korea's "Today's Facts" 26 daily reported that in the research track of high-energy and high-density batteries, new generation battery products are emerging one after another. At present, the strength of the Korean battery industry lies in high nickel ternary lithium batteries, while Japanese companies are in a leading position in solid-state battery research and development.

But the report also believes that the development of this type of battery is still in its early stages and will not pose a significant threat to existing battery products. Industry insiders in South Korea expect that the commercialization of all solid-state batteries will take a long time, and the market penetration rate of electric vehicle all solid-state batteries is expected to not exceed 15% by 2035.

On the 27th, Mo Ke, Chief Analyst of Chinese research institution Zhenli Research, told Global Times that the key to achieving fundamental breakthroughs in battery technology is to study relevant materials. In the field of battery materials, Japan's strength cannot be underestimated, and overall it is ahead of China and South Korea. Toyota's latest trends should be taken seriously by domestic enterprises. At present, the technological advantages of Chinese battery companies such as Ningde Times are based on existing liquid lithium battery products. For revolutionary new battery technologies, they may not have an advantage compared to Japanese companies. At present, there are many technological breakthroughs needed for solid-state batteries, and it may even take 8 to 10 years to see results. Battery companies in China, Japan, and South Korea are all working hard to overcome these challenges.