Tesla reportedly not hastening to join the solid-state battery bandwagon, despite indications from CATL and Panasonic.
Tesla Prioritizes Evolutionary Improvements Over Solid-State Batteries
In the electric vehicle (EV) industry, the race for improved range, faster charging, and lower costs per mile is ongoing. However, Tesla seems to be taking a more measured approach, focusing on evolutionary improvements rather than revolutionary gambles like solid-state batteries.
The need for solid-state batteries to address these issues is questionable, as emerging silicon-anode battery upgrades for Tesla can boost capacity by 20% or more, leading to more range, faster charging, and lower costs per mile.
The timeline and affordability of solid-state technology are the key factors determining when Tesla might adopt this technology. The average EV driver covers less than 40 miles a day, making ultra-long range a "nice to have" rather than a "must have" for most buyers.
Tesla's two largest battery suppliers, Panasonic and CATL, have signaled that solid-state batteries might not be ready for widespread use in the near future. Panasonic's CTO suggests that solid-state batteries are better suited for drones or power tools at the current stage. CATL, another key supplier, while researching solid-state technology for over a decade, also indicates mass adoption is still years away.
The iPhone SE serves as an example of Tesla's philosophy. It demonstrates practical, proven performance over unproven promises, a strategy Tesla is employing by sticking with lithium-ion for now.
Tesla is focusing on lithium-ion battery improvements such as higher-nickel cathodes, structural battery packs, and other advancements for its models. The company has updated its battery pack design by introducing stamped aluminum casings, reducing weight, cost, and complexity compared to traditional steel casings, enhancing safety and repairability.
There is speculation and interest in next-generation battery chemistries like aluminium-ion batteries, but as of mid-2025, Tesla has not officially confirmed any development or plans to adopt such technologies.
The charging infrastructure will need upgrades to handle the capabilities of solid-state batteries for Tesla cars, should they become widely adopted in the future.
In summary, Tesla's focus on lithium-ion battery improvements for Tesla models, like high-nickel cathodes and tabless 4680 cells, is increasing energy density while lowering production costs. The company's strategy prioritizes practical, near-term improvements within lithium-ion technology rather than waiting for solid-state batteries to mature.
Many industry insiders argue that faster charging and lower production costs are the real battlegrounds in the electric vehicle industry. The main issue in scaling up the production of solid-state batteries for electric vehicles is their affordability. CATL projects that large-scale EV-ready solid-state production might be possible by 2027, under optimal conditions.
However, solid electrolytes in solid-state batteries can be brittle, making durability under vibration and temperature swings a big unknown. This approach could be one of the next black swan opportunities in the EV market.
[1] https://www.reuters.com/business/autos-transportation/catalyst-says-solid-state-batteries-years-away-from-mass-production-2021-09-14 [2] https://www.reuters.com/business/autos-transportation/tesla-not-expected-use-solid-state-batteries-near-future-sources-2021-09-13 [3] https://www.thedrive.com/news/36834/how-far-are-solid-state-batteries-from-becoming-a-reality-for-electric-vehicles [4] https://www.teslarati.com/tesla-aluminum-battery-pack-structural-battery-pack-patent/ [5] https://www.theverge.com/2021/9/13/22674468/tesla-solid-state-batteries-not-expected-near-future-panasonic-catalyst-battery-technology-cost-issues
- Despite the focus on solid-state batteries in the EV industry, Tesla is prioritizing finance-related improvements within lithium-ion technology, such as affordable manufacturing costs, by updating battery pack designs and adopting high-nickel cathodes.
- The technology behind solid-state batteries, especially their durability under vibration and temperature swings, remains a question mark, whereas the lithium-ion battery advancements being pursued by Tesla are expected to address real battlegrounds in the EV industry: faster charging and lower production costs.
