Foxconn Strengthens Solid-State Battery Investment, Eyes Two-Wheeler Market as Testing Ground, Says TrendForce
Hon Hai subsidiary Foxconn has recently established Foxconn New Energy Battery (Zhengzhou) Co., Ltd. in Henan, China. The newly formed company will focus on battery manufacturing, sales, and R&D into automotive components. Recent TrendForce investigations reveal that Foxconn’s initial approach to solid-state batteries will involve partnerships with other battery manufacturers—starting with lower-complexity manufacturing processes and focusing on building expertise in the two-wheeler market.
Solid-state batteries have become a critical area of focus for global battery manufacturers aiming to advance next-gen battery technologies. However, large-scale production has yet to be realized due to the high manufacturing difficulty and costs associated with these batteries. Companies like QuantumScape, Solid Power, and SES in the U.S. have invested over a decade in developing automotive-grade solid-state batteries but have yet to achieve mass production. Currently, only polymer-based automotive solid-state batteries and solid-state micro batteries for special applications are in commercial use.
TrendForce highlights that as a newcomer to the solid-state batteries, Foxconn will likely face challenges in quickly mastering the entire development and manufacturing chain—from materials and electrodes to cells, modules, and system integration. Consequently, the company is expected to enter the market by collaborating with established battery manufacturers and focusing on less complex manufacturing processes, initially adopting the role of a pack manufacturer. This approach aligns with its existing EV manufacturing business, laying the foundation for a future supply chain covering materials, cells, and battery packs.
In 2020, Foxconn announced its entry into solid-state battery technology and established its subsidiary, SolidEdge Solution, in Taiwan the following year to focus on solid-state battery materials R&D. In 2022, Foxconn broke ground on its first LFP battery plant in Kaohsiung. In 2023, Foxconn secured a significant partnership in solid-state batteries, signing an M.O.U. with SolidEdge Solution and Blue Solutions to jointly develop a solid-state battery ecosystem for electric two-wheelers, which initially targeted the Indonesian market.
TrendForce notes that Foxconn and Blue Solutions chose to focus on electric two-wheelers rather than electric cars as an entry point for refining solid-state battery technology. Automotive solid-state batteries must achieve balanced performance in cycle life, charge/discharge rates, energy density, and cell capacity. Additionally, the integration and manufacturing costs of battery systems for EVs are high. In contrast, two-wheeler batteries require lower power output, present less manufacturing complexity, and can accommodate the current higher cost of solid-state batteries, making the electric two-wheeler market an ideal “training ground” for Foxconn’s entry into solid-state battery manufacturing.
