The battery industry is at a turning point, balancing the urgent need to scale production with the push for next-generation battery innovations, according to the latest report by the Capgemini Research Institute.
While lithium-ion batteries continue to dominate due to their proven performance and established supply chains, solid-state batteries and other alternative chemistries are gaining traction, offering higher energy density, faster charging, and improved safety. However, scaling production remains a challenge—76{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of manufacturers need to upgrade or build new production lines to support the future of battery technology.
“Innovation is driving a sustainable and competitive battery industry. As manufacturers navigate production ramp-ups and explore next-generation chemistries, a solid digital foundation will be crucial for the industry’s future.”
— Pierre Bagnon, Global Head of Intelligent Industry Accelerator, Capgemini
Key APAC Highlights: Rise of Battery-as-a-Service (BaaS) and Digital Innovation
Battery-as-a-Service Gains Momentum
- 98{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of battery production in APAC remains focused on lithium-ion technology, with lead-acid batteries (18{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be}) still in use.
- 70{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC automotive companies are exploring battery leasing models to lower upfront EV costs, compared to 65{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} globally.
- 58{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC automotive firms are testing BaaS, rental, and subscription-based EV models, outpacing the 52{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} global average.
- 75{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC energy and utility companies are adopting BaaS, surpassing 69{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} globally.
- 83{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC energy companies plan to pair solar farms with battery storage, well above the 67{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} global average.
Gigafactories, Raw Material Access & Industry Challenges
- 59{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC and global battery manufacturers cite long gigafactory construction timelines as a major challenge.
- 77{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC manufacturers say they will need to upgrade production lines for next-gen batteries.
- 53{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC manufacturers struggle with thermal management expertise—a major skills gap.
- 62{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC respondents predict that fleet operators and heavy transport will face the biggest disruption from battery innovation in the next decade.
- 58{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} believe railways will see a major shift to battery-powered solutions.
Sustainability & Circular Economy: A Work in Progress
- 74{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC organizations are experimenting with in-house battery recycling facilities.
- 68{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} are testing battery take-back programs, aligning with global efforts.
- 67{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC firms are forming cross-industry partnerships for battery reuse and recycling.
The Digital Shift: Unlocking the Battery Industry’s Future
- 74{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC battery manufacturers are using Generative AI for new material discovery.
- 70{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} believe IoT can revolutionize battery health monitoring and traceability.
- 65{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} are integrating blockchain for secure, transparent tracking of battery components.
- 80{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} of APAC firms see collaboration as essential for accessing new technologies, compared to 76{95328d58e7f9e3e54ea8d2b4dc0d5643e4ddd71e34bd972defa4643c55aab0be} globally.
As batteries become central to decarbonizing transportation and advancing renewable energy, Capgemini highlights the need for collaboration, digitalization, and innovation. With data-driven manufacturing and intelligent lifecycle management, the industry can overcome challenges and unlock new opportunities.