Hyundai May Test Solid-State Batteries In 2025: Report

As I wrap up a three-week trip home to India—the world’s third-largest passenger car market after China and the U.S.—two things have been on my mind. First, in the U.S. we often overlook how global the EV transition really is. Second, electrification isn’t just about cars. It’s about all of transportation: vans, buses, two-wheelers and tuk-tuks (or auto-rickshaws as we call them here).

While the U.S. remains polarized about EVs, let’s not forget that automakers are global. Beyond the jurisdiction of the anti-EV incoming Trump administration, automakers seem to continue to double down on EV research and development, regardless of how uneven the sales might be stateside. One case in point is Hyundai’s plan for solid-state batteries.

Welcome back to Critical Materials, your daily round-up of news and events shaping up the world of EVs and all things related. Also on today’s radar: Research firms predict EV sales in China will outpace combustion engine cars for the first time next year, reaching its EV goals 10 years ahead of schedule. Plus, Toyota will get millions in federal funding to establish a supply chain for end-of-life batteries in the U.S.

30%: Hyundai’s Solid-State Battery Dreams May Be Coming True

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If the EV battery industry sustains its current momentum, the next few years could be the springboard for solid-state batteries. Several major automakers and battery companies, including Toyota, Honda and Nissan plan to deploy solid-state batteries in passenger cars. Hyundai has no plans to be left behind.

Solid-state batteries are considered the next big thing in the EV industry. These batteries offer a solution to everything we dislike about traditional lithium-ion batteries, with lower fire risk, longer driving range, faster charging speeds and broader operating temperatures. But they’re more expensive to manufacture and OEMs still have to figure out scalability.

Battery companies and automakers, however, believe that those issues can be ironed out over time. Now the Hyundai Motor Group is in the final stages of launching its first solid-state battery pilot production line at the Uiwang Research Institute in Gyeonggi-do, South Korea, according to The Korean Car Blog.

Here’s more from that report:

An official familiar with the project stated that equipment installation for individual processes is nearing completion, with only the construction of logistics automation facilities remaining. Full-scale operations are expected to commence in January of the coming year.

According to the report, the batteries coming out of this pilot production line will be used in prototype EVs for real-world testing in 2025.

Unlike the traditional liquid or gel electrolyte found in most lithium-based batteries, solid-state batteries use a solid electrolyte, which facilitates the movement of charge-carrying ions during a battery’s charge and discharge cycles. This solid electrolyte enhances safety, energy density and longevity compared to traditional batteries.

That’s why several automakers are going all-in on this tech.

Hyundai’s approach seems to be similar to Honda’s plans. The automaker built a 300,000-square-foot demonstration line for these batteries in Sakura City, Japan, this year to figure out full-scale manufacturing. Toyota is also set to be among the first automakers to produce solid-state batteries after the Japanese government approved its 2026 production plans earlier this year.

It may take a few more years for Korean and Japanese automakers to bring this technology to the U.S., but the trajectory suggests range anxiety could finally have a lasting solution.

60%: EVs To Overtake Combustion Car Sales In China In 2025

China is unapologetically reshaping the automotive world order. Research firms expect its leadership in global EV sales to reach new heights in 2025.

China’s new energy vehicle (NEV) sales, which include fully electric models and plug-in hybrids, are expected to grow 20% year-over-year in 2025 to more than 12 million cars, according to data obtained by the Financial Times from four investment firms and research groups. If that happens, China will have doubled its NEV sales from 2022, when nearly six million NEVs hit the streets.

The broader impact? EV sales could outstrip combustion cars for the first time in China’s history, catapulting the country years—if not decades—ahead of Western nations still navigating a rocky road to electrification. If the projections are accurate, the outcome would surpass China’s own targets for NEV sales in 2025 and outperform international forecasts as well, as per the report.

Here’s another mind-blowing detail from the Financial Times:

While the pace of Chinese EV sales growth has eased from a post-pandemic frenzy, the forecasts suggest Beijing’s official target, set in 2020, for EVs to account for 50% of car sales by 2035, will be achieved 10 years ahead of schedule.

Of course, it’s not all good news. Concerns are still looming over China’s EV production overcapacity spilling over to other countries and causing disruption there. There’s also an ongoing price war in China, intense competition that will most likely wipe out many of the smaller players and increasing concerns over labor malpractices after “slavery-like” conditions were reported at a BYD factory in Brazil.

90%: DOE Grants $4.5 Million To Toyota For Battery Supply Chain Research

President Biden’s climate legacy will likely be remembered for years to come.

His administration is fast-tracking several climate-focused agendas in his final days in the White House, locking in a flurry of last-minute loans and grants before Trump takes over and threatens to reverse years of progress. That includes a $4.5 million award to Toyota for developing a domestic EV battery supply chain.

Bear with me for the following acronyms. The U.S. Department of Energy (DOE) awarded the funds to Toyota under its Advanced Research Projects Agency-Energy (ARPA-E). Toyota will work with the Oak Ridge National Laboratory to find solutions for the bottlenecks in the battery supply chain, automate battery pack disassembly and find solutions for cell degradation.

“Together, these innovations envision a scenario where end-of-life lithium-ion batteries are systematically evaluated, classified and reused prior to being considered for recycling,” Toyota said in a press release.

This seems crucial because true EV sustainability hinges on how batteries are managed at the end of their life.

100%: Which Future EV Technology Excites You The Most?

Automakers flexed their technology muscles this year. Hyundai left us smitten with the fake-shifting gears on the Ioniq 5 N. General Motors ditched Apple CarPlay but aced the factory-fitted Android Automotive-based system. Tesla showcased the Robotaxi without a charging port but with wireless charging capability.

Now, with things like solid-state batteries on the horizon, what EV technology are you excited about the most? Leave your thoughts in the comments.

Have a tip? Contact the author: suvrat.kothari@insideevs.com