Foxconn Partners with Blue Solutions to Develop Solid-State Batteries for Electric Two-Wheelers

Foxconn Technology Group, the world's largest electronics contract manufacturer and a major supplier of Apple, has announced a partnership with Blue Solutions, a Canadian company specializing in the design and manufacturing of solid-state batteries.

According to a statement on Foxconn's official website, the two companies signed a memorandum of cooperation on September 28. Their collaboration aims to jointly develop a solid-state battery ecosystem for the electric two-wheeler market, with Foxconn's subsidiary, SolidEdge Solution, and Blue Solutions playing key roles.

Initially, the partnership will focus on the Indonesian market, where electric two-wheelers are popular and have significant growth potential. In subsequent phases, the collaboration will explore the application of solid-state batteries to other types of electric vehicles beyond two-wheelers.

Solid-state batteries are considered the next generation of power batteries due to their higher energy density, longer lifespan, and improved safety compared to the widely used liquid lithium-ion batteries in electric vehicles today. Many carmakers and battery manufacturers that have lagged behind in the liquid battery field are investing heavily in solid-state battery technology, aiming to catch up with or surpass their competitors.

Foxconn is among these companies. In 2020, the company announced its intention to enter the battery manufacturing business and invest in solid-state battery technology, as well as other related fields such as fast charging, low-temperature optimization, high-energy density batteries, and new processes without precious metals. Foxconn's goal is to reduce battery weight and volume by 50% while increasing the battery cycle life by more than 10%.

However, Foxconn's progress in battery production has been relatively slow. Construction of the company's first battery factory in Taiwan began in June of the previous year, and it plans to commence trial production of lithium iron phosphate batteries in the first quarter of the upcoming year. The planned capacity of 1.27 GWh is only 1/300th of CATL, China's leading battery maker.

In September of the previous year, Foxconn also formed a joint venture called Foxconn Indika Motor with Indika Energy, an Indonesian coal company, with the aim of producing batteries and electric vehicles in Indonesia. The recent partnership with Blue Solutions, a Canadian solid-state battery company, marks another step forward in Foxconn's battery production ambitions.

However, despite the potential of solid-state batteries, mass production and large-scale installation still pose significant challenges. Toyota, which has made substantial investments in solid-state batteries, initially planned to produce them in 2020 and achieve mass production by 2025. However, the mass production target has been postponed to 2027-2028. SNE, a South Korean new energy analysis agency, predicts that the solid-state battery market, which will start mass production in 2027, will account for 10%-13% of the total market by 2035.

Nevertheless, niche markets such as drones and specialized products are currently serving as "test fields" for solid-state batteries until they achieve mass production and large-scale installation. These niche products have lower power consumption and higher requirements for battery safety and endurance, making them more receptive to the higher prices of current solid-state and semi-solid batteries.

The solid-state batteries developed through the collaboration between Foxconn and Blue Solutions will initially be applied to two-wheelers. Gradually expanding to niche scenarios and eventually scaling up mass production and installation as the technology matures and costs decline is a suitable path for progressive advancement.