Q&A with Ilika

Suppliers are increasingly exploring solid-state batteries (SSBs) as a potential solution for the automotive industry, particularly as manufacturers seek to enhance the performance and safety of electric vehicles. Unlike traditional lithium-ion batteries that use liquid electrolytes, SSBs use solid electrolytes, which have several advantages, including improved energy density, greater safety and longer life cycles. However, while these benefits are promising, the technology is still in the developmental phase, and several challenges must be addressed before widespread adoption can occur.

The enhanced safety profile of SSBs is one of the primary advantages. Solid electrolytes reduce the risk of flammability associated with liquid electrolytes, which can be hazardous in the event of battery damage or overheating. This safety aspect is particularly critical for automotive applications, where battery failures can have severe consequences. Additionally, the potential for higher energy density means that SSBs could provide greater range for EVs, addressing consumers’ range-anxiety concerns.

Despite these benefits, several hurdles remain. The current manufacturing processes for SSBs are not yet fully optimized for mass production, which raises concerns about scalability and cost. Presently, SSBs tend to be more expensive than their lithium-ion counterparts, which limits their viability for mainstream automotive applications. Price parity is a crucial factor for automakers, who must balance performance improvements with consumer affordability. To gain further insights, we spoke with Graeme Purdy, CEO of Ilika. Founded in 2004, the company specializes in battery chemistry and manufacturing processes, with a focus on improving safety and performance in energy storage solutions.

Key takeaways:

• Safety and performance: Solid-state batteries are generally considered safer than traditional lithium-ion batteries due to their solid electrolytes, which reduce the risk of leaks and fires. They also offer the potential for improved performance, including higher energy density. However, practical implementation and scalability remain challenges that need to be addressed.
• Cost considerations: Achieving price parity with lithium-ion batteries is a key goal for SSB manufacturers, with some estimates suggesting this could happen by the early 2030s. However, this will depend on advancements in manufacturing processes and the ability to efficiently scale production. Currently, SSBs tend to be more expensive, which limits their adoption primarily to premium markets.
• Target markets: SSBs will first find applications in high-end sectors, such as EVs and specialized equipment, where performance and safety are critical. Over time, as production scales and costs decrease, broader applications may emerge, including consumer electronics and grid storage.
• Environmental impact: SSBs may offer some environmental advantages over conventional batteries, such as potentially lower energy requirements in manufacturing and easier recyclability. However, the overall sustainability of SSBs will depend on the sourcing of materials and the life cycle management of the batteries.

The following is an edited transcript of the conversation.

S&P Global Mobility: Could you provide an overview of Ilika, including the technologies you specialize in, your key customers and your core capabilities in the battery sector?

Ilika is a solid-state battery developer based in Southampton, UK. Established in 2004, we focus on developing and commercializing two distinct solid-state battery technologies. 

The first is Stereax, a miniature solid-state battery designed to power active medical implant devices. With over 20% of adults in the US living with chronic pain, there is an enormous addressable market for Stereax batteries as they are smaller, easier to implement, and have a much longer lifespan than existing technologies. In 2023, Ilika licensed Stereax batteries to US-headquartered medical device company Cirtec with the partnership intended to bring Stereax batteries to market.

The second product line is Goliath, a large format battery designed for EVs and cordless appliances. For EV users, Goliath batteries have the potential to provide greater range, faster charging times and better safety performance. Currently in the pre-production phase, Goliath is undergoing rigorous development and testing, with ongoing engagement with potential customers.

Our core capability lies in our deep understanding of solid-state battery chemistry and manufacturing processes. We are experts in materials science, cell design and scale-up strategies, enabling us to innovate and advance solid-state battery technology.

Solid-state batteries typically require high compression at the pack level to achieve a reasonable cycle life, which often necessitates complex pack designs that can negate the energy density advantages of SSBs. How do you evaluate this challenge, and do you have potential solutions to address it?

We expect that some solid-state batteries will require compression for optimal usage with different chemistries requiring more or less. However, we believe that advances in manufacturing and pack integration will mitigate this challenge. For example, integrating compression within the cooling system could minimize the added weight and size of the battery pack. Ilika is evaluating the compression needs of both Stereax and Goliath batteries through ongoing testing, which is informing our design choices and ensuring our batteries deliver optimal performance in real-world applications.

Given that price has become a paramount priority for car manufacturers, how do you assess the cost of SSBs compared with liquid electrolyte lithium-ion batteries? Do you believe SSBs will ever reach price parity with lithium-ion batteries, or will they remain more expensive, catering primarily to the premium sector?

Our cost modelling indicates that price parity with lithium-ion batteries is achievable by the early 2030s. A key factor contributing to this projection is the availability and scalability of the materials used in Goliath batteries, all of which can be manufactured at the megaton level. Furthermore, our analysis suggests that approximately 70% of the manufacturing equipment used for lithium-ion batteries can also be utilized for solid-state battery production. We are collaborating with partners to design the remaining 30% of specialized equipment, minimizing the capital expenditure required for solid-state battery manufacturing.

However, achieving price parity hinges on reaching gigawatt-scale production and commoditization through large-scale manufacturing. These factors will be crucial for driving down costs and making solid-state batteries competitive across a broader range of applications, including creating access to price-sensitive EV markets.

Ilika is using silicon for the anode, while many other SSB suppliers are pursuing lithium metal. How do you compare these two choices in terms of technology maturity, scalability, supply chain readiness and cost implications?

Ilika selected silicon as an anode material (along with oxide electrolytes) to emphasize the safety aspect of our technology. We have modelled that inherently safer cell design can provide important energy density gains at the pack level. This means that pack designers could reduce the need for robust safety structures and simplify cooling systems, resulting in lighter and more efficient packs. This focus on safety-driven design is a core element of our approach. The silicon supply chain is already being established for use in conventional lithium-ion batteries, enhancing supply chain readiness for its use in solid state.

As SSB adoption increases, how do you foresee the competitive landscape evolving? Which specific industries do you believe will benefit the most from the widespread implementation of solid-state battery technology?

Solid-state batteries represent a superior alternative to existing lithium-ion technologies, offering enhanced safety and performance. Initially, we anticipate that SSBs will penetrate premium markets such as high performance automotives. Their potential for superior temperature tolerance may also make them attractive for applications in demanding environments, such as powering mining equipment or storing residential energy in hot climates.

The solid-state battery industry is still in its nascent stages. As we gain a deeper understanding of SSB characteristics, we will uncover additional market opportunities. Furthermore, variations within solid-state battery technologies will likely emerge, with different chemistries and designs optimized for specific applications. 

The lithium-ion battery market has been predominantly dominated by Asian suppliers. How do you view the potential of solid-state batteries as a pathway for Western players to achieve competitiveness with Chinese and Korean manufacturers? Can SSB technology play a role in freeing Western countries from the dominance of Greater China over the battery supply chain?

Understandably, Asian manufacturers are also pursuing the solid-state opportunity. All innovators, regardless of geography, have an opportunity to take a leadership position in the SSB space by developing truly disruptive technologies that offer significant advancements in performance, safety and other key metrics. By prioritizing innovation and delivering superior products, Western players can capture a substantial share of the growing solid-state battery market and contribute to diversifying the global battery supply chain. 

What role do you envision for SSBs in the transition to renewable energy solutions, and how does Ilika plan to position itself within this emerging market?

We have collaborated with organizations such as HSSMI sustainable manufacturing innovation consultancy to model the potential impact of solid-state battery technology on the sustainability of the battery industry. Our analysis suggests that SSBs can offer environmental advantages due to less energy-intensive manufacturing processes and potentially easier recyclability compared with liquid electrolyte batteries.  Furthermore, the lighter weight of SSBs can contribute to reduced energy consumption in transportation and other applications. Ilika is committed to developing and commercializing sustainable battery solutions that support the transition to a cleaner energy future.

Unlock insights from our latest report, "High-voltage Electric Vehicle Battery Recycling Outlook," based on S&P Global Mobility’s comprehensive study. This report delves into the evolving landscape of battery recycling throughout this decade, focusing on key markets in Greater China, Europe and North America.