Source to Blue Solutions, Blue Solutions has signed a memorandum of understanding with Foxconn and its subsidiary, SolidEdge Solution Inc., to jointly develop a solid-state battery ecosystem for the electric two-wheeler market.

Blue Solutions is a Bolloré Group entity and global industrial-scale designer and manufacturer of solid-state batteries, which have been marketed since 2011. The company has signed a memorandum of understanding (M.O.U.) with Foxconn – the world’s largest electronics manufacturing services provider – and its subsidiary SolidEdge Solution Inc., which designs battery materials. The aim of the agreement is to jointly develop a solid-state battery ecosystem.

The partners have agreed to combine their expertise, technologies, and resources to develop and produce batteries for two-wheeled vehicles. The partners’ objective is to co-develop batteries using Blue Solutions’ exclusive solid-state cell technology. Specifically, they will use Blue Solutions’ innovative Gen4 technology and SolidEdge Solution’s materials to equip two-wheeled vehicles to serve the target markets. According to the terms of the agreement, variants of these battery systems may also be adapted for other electric vehicles.

The cooperation between Blue Solutions and Foxconn will initially target the Indonesian market. According to McKinsey’s estimates, the global two-wheeled vehicle market will be worth about $218 billion by 2029, with a CAGR of 8.7% and the main growth momentum will come from electric motorcycles. The country’s ultimate goal is to have the number of electric motorcycles reach 13 million by 2030, a fraction of what it is now.

As a pioneer, Blue Solutions has an extensive background in solid-state batteries with research going back to the 1980s. It is the sole producer in the world, and since 2011, of solid-state cells, modules, and packs with production lines located both in France and in Canada. At this date Bolloré group has already invested €3 Billion in Blue Solutions and its activities, leading to more than 3 million cells delivered to the market.

Foxconn’s subsidiary, SolidEdge Solution, was founded in 2021 and is a pioneer in the development of battery materials in Taiwan. The goal of this innovative work is to develop common materials for each of the main components of a battery cell.

Toyota announced during a technical conference on June 13, 2023, that Toyota has identified suitable materials to commercialize solid-state battery technology around 2027-2028, intending to introduce new energy vehicles powered by these batteries to the market.

Out of the 2.17 million electric vehicles (including BEV, PHEV, HEV, FCV) sold by Toyota in 2022, BEVs accounted for less than 1%, indicating a significant lag behind its competitors in the BEV sector. However, Toyota possesses over 100 solid-state battery patents and showcased a solid-state battery prototype as early as 2020, finally catching up in the solid-state battery race.

According to TrendForce’s analysis, current new energy vehicles primarily use nickel-cobalt-manganese (NCM) or lithium iron phosphate (LFP) as cathode materials, and graphite as anode material. NCM batteries offer higher energy density, with a system limit of around 250-260Wh/kg, but come with higher costs and a risk of thermal runaway. On the other hand, although LFP batteries are safer, less prone to thermal runaway, and more cost-effective, their energy density is significantly lower than that of NCM, with a system limit of approximately 160-170Wh/kg.

To achieve energy densities surpassing 300Wh/kg and reaching the 400-500Wh/kg target, lithium batteries will primarily focus on adjusting anode materials in the future. This includes incorporating higher-capacity materials such as silicon oxide, silicon carbon, or metallic lithium to increase the capacity of individual battery cells. However, using these high-activity anode materials in combination with traditional liquid electrolytes carries a higher risk of triggering thermal runaway during the charging and discharging processes.

In contrast, solid-state electrolytes provide structural stability, effectively preventing short circuits in batteries. By removing the separator film, solid-state batteries achieve a more compact size and higher energy density compared to liquid lithium batteries. In summary, solid-state batteries solve the challenge of balancing safety and energy density that traditional lithium batteries face, making them the most promising battery solution for future new energy vehicles.

However, during the development of solid-state battery technology, Toyota encountered an increase in interface impedance and a decrease in electrode-electrolyte adhesion due to the transition from liquid to solid electrolytes. These issues lead to battery capacity decline and affect cycle life, posing one of the many technical challenges in the current development of solid-state batteries.

Considering the difficulties involved, some battery manufacturers have shifted their focus to semi-solid-state batteries, such as CATL and Welion. Given Toyota’s current reliance on Chinese liquid battery technology for their development of solid-state batteries, it seems like a formidable task to achieve a breakthrough. Even if they overcome these challenges, the ability to replicate the success from the lab to actual vehicles remains uncertain.

Nevertheless, considering Toyota’s current situation, it may be more reasonable to place their bet on solid-state batteries rather than persistently chasing after the liquid battery sector. Although this strategic move carries high risks, it represents Toyota’s best and potentially last opportunity for overtaking competitors in the new energy vehicle field.

(Photo credit: Toyota Motor Corporation)