Electric vehicle battery tech: The latest breakthroughs and their impact on global supply chains

The automotive world is buzzing with electricity – literally. Electric vehicles (EVs) are no longer the future but the present. In 2024, over 30 countries hit the EV tipping point, where at least 5% of new car sales were fully electric, signaling the start of mass adoption. Global EV sales hit a new record, rising 25% to over 17 million cars.¹

After years of much talk and little action by major carmakers, why is the industry finally stepping on the accelerator? One reason is undoubtedly demand. Consumer interest is high, driven partly by the increasingly noticeable effects of climate change. And now that so many countries have reached the pivotal EV tipping point, automakers expect sales to skyrocket.

The other reason is that electric vehicle battery technology has made remarkable advances in recent years. As EV battery costs have fallen, range has increased, and charging infrastructure has expanded, EVs have become more economical and competitive. This has led to the production of smaller electric cars, which have tighter profit margins, and heavy-duty e-trucks, which have been a challenge to decarbonize economically. 

There are two reasons why it helps to understand EV battery technology and the electric vehicle supply chain. First, many drivers still aren’t sure whether EVs are right for them, often because of the price, perceived low range, and lack of charging stations. Second, EVs are transforming logistics – how we operate our logistics networks and the automotive supply chains we manage.

That’s why we keep up with the latest EV news and monitor developments in electric vehicle battery technology. After all, we ship EV batteries, which are classified as dangerous goods, worldwide every day.

Here’s what everyone interested in the electric vehicle value chain should know, with links to more info for anyone who wants to geek out on the subject. 

Technology remains the number one hurdle to widespread adoption of electric vehicles. There are challenges, but let’s bust a few myths first.

For many of us, electric vehicles make a lot of sense: No emissions on our roads, no noise in our neighborhoods, no gas tanks to fill up, and fewer moving parts to maintain.

Myth #1: EVS are too expensive.

Many people assume EVs are more expensive than traditional internal combustion engine (ICE) vehicles because of the price tag. Most EVs have higher upfront costs, but the total cost of ownership is often lower. Fuel savings, tax incentives, and minimal maintenance make EVs more cost-effective over time. As battery technology advances and production scales, prices will continue to drop.

Myth #2: EVs don’t have enough range or charging stations.

Early EVs had limited range, but today’s models can travel over 480 km (300 miles) on a single charge. Charging infrastructure is also expanding fast. By the end of 2023, there were over four million public charging points worldwide, a 40% increase from 2022. With the International Energy Agency predicting over 15 million by 2030, range anxiety is quickly becoming a thing of the past.²

Myth #3: EVs require expensive replacement batteries.

Another growing misconception is that you’ll have to replace the batteries at some point at a high cost. But the lifespan of an EV battery is longer than most people think, with batteries lasting between 12 and 15 years. All EV manufacturers currently offer at least an eight-year, 100,000-mile (160,000-km) warranty on EV battery packs.³

If you want to dive deep into EV battery technology, you’ll find some links at the end of the article. Read on for some basics and what is important to us as logistics providers.

Lithium-ion batteries

Lithium-ion is the most common type of electric vehicle battery – and, in fact, the most common form of rechargeable battery in the world. Why? Mostly because lithium-ion batteries have a high power-to-weight ratio. That means they pack a lot of energy into a small, lightweight package, which reduces an EV’s weight while increasing its performance and efficiency. A lighter, more powerful battery allows the car to travel further.

All lithium-ion batteries function the same. What varies are their materials and chemistries. The three main cathode formulas used in vehicles today are nickel, manganese, and cobalt (NMC), nickel, cobalt, and aluminum (NCA), and lithium-phosphate (LFP).

What’s so important about the chemistry? The materials used in the cathode can make or break the battery’s cell density and, therefore, its performance. Here are some advantages and disadvantages of the three main formulas:

The race for better EV battery technology is heating up, with researchers and manufacturers chasing the next big breakthrough. The goal? Cheaper, more efficient, and more sustainable alternatives to lithium-ion batteries.

Why look beyond lithium-ion? While these batteries power most EVs today, they rely on scarce and expensive materials like cobalt and nickel. Mining these elements raises costs, ethical concerns, and environmental challenges. There’s also a safety risk. Lithium-ion batteries are energy-dense and contain highly flammable material. That’s why scientists are developing next-generation batteries that use more abundant and nonflammable materials, improve performance, and reduce costs.

Here are three key innovations shaping the future of EV batteries.

1. Solid-state batteries – the ultimate game-changer?

Solid-state batteries are widely considered the next big leap in electric vehicle battery technology. Unlike conventional lithium-ion batteries, they replace the liquid electrolyte with a solid conductor, making them safer, more compact, and more powerful.

• Twice the energy density = longer driving ranges
• Faster charging times = less time plugged in
• Non-flammable materials = reduced fire risk

While promising, solid-state batteries aren’t mass-produced yet. Their biggest challenge? High production costs and scalability. Some automakers hoped 2025 would be a pivotal year, but widespread commercialization will take longer. That said, several companies have begun pilot production of vehicles with semi-solid-state batteries. And with heavy investments from major players, solid-state batteries are poised to redefine EV performance in the coming years.

2. Sodium-ion batteries – affordable and abundant

Sodium-ion battery technology is emerging as a low-cost alternative to lithium-ion batteries. Sodium is far more abundant and cheaper than lithium, reducing supply chain risks and cost fluctuations.

• Lower cost = more affordable EVs
• Cold tolerance = better performance in low-temperature conditions
• Fewer critical minerals = more sustainable

Initially, sodium-ion batteries had low energy density, limiting their use to e-bikes, scooters, and city cars. However, recent advances have narrowed the gap with lithium-ion technology. Companies like Chery and JAC have already launched EV models powered by sodium-ion batteries. As energy density continues to improve, sodium-ion batteries could become a viable option for a wider range of electric vehicles.

3. LFP batteries – the cost-effective alternative

Lithium iron phosphate (LFP) batteries are already gaining traction, especially for affordable EV models. While they have a lower energy density than NMC batteries, they offer other advantages:

• Cheaper to produce = low EV prices
• Longer lifespan = better long-term value
• Safer chemistry = lower risk of overheating

LFP batteries have traditionally been used for shorter-range EVs, but recent improvements have pushed their range above 500 km (310 miles). As their performance improves, more automakers are switching to LFP batteries to reduce costs and expand EV accessibility. 

4. Lithium-sulfur batteries – lighter, cheaper, better?

Lithium-sulfur (Li-S) battery technology has made strides recently, attracting attention as a high-energy, low-cost alternative to lithium-ion technology. By replacing expensive metals like cobalt and nickel with abundant sulfur, these batteries promise lower production costs and higher sustainability.

• High (theoretical) energy density = longer driving ranges
• Abundant and inexpensive = lower production costs and supply chain risk
• Fewer rare metals and toxic materials = more sustainable and environmentally friendly

Li-S batteries also have the potential to charge faster and weigh less than current lithium-ion options. One of the challenges developers have faced is a lower lifespan as Li-S batteries degraded faster than lithium-ion. But many companies are developing the technology, and we’ve seen notable progress in the last year alone.

Range anxiety may be fading, but a new concern has taken its place: charge anxiety. How fast can I charge? Where can I find the next station? Potential EV buyers worry less about how far they can drive and more about where, how quickly, and how conveniently they can charge.

Their concerns are valid. Charging infrastructure is currently one of the greatest challenges, with rural areas often underserved and accessibility in urban areas varying widely. Drivers frequently require multiple apps and memberships, making the charging process confusing. Reliability and user-friendliness must improve to match the convenience of refueling conventional vehicles.

The good news is that charging technology is advancing rapidly, making it faster, easier, and more seamless to power up an EV. For example, the latest ultra-fast 350 kW chargers can nearly match the convenience of filling up a gas tank, adding hundreds of miles of range in just 15-20 minutes. New battery components are also improving charging speeds. For instance, some lithium-ion batteries with silicon anodes can now charge to 80% capacity in under 10 minutes. Wireless and AI-powered charging systems are also in development, which could make charging more convenient and home charging more efficient.

What’s more, battery swapping systems, which are particularly popular in China, may change the game as well, smoothing the transition to commercial EVs, for example. These systems allow EV drivers to exchange depleted batteries for fully charged ones in minutes.

With faster charging, smarter technology, and expanding infrastructure, charge anxiety is set to become a thing of the past, making the switch to an EV much easier.

You only have to go back a few years to find a completely different market for electric car batteries. As the technology changes, so do EV battery supply chains. In fact, the entire EV value chain has evolved, adding new raw materials and suppliers – and, therefore, new complexity. How can logistics companies keep up?

One way is to stay plugged into the EV industry. At DHL, we rely on our Team EV – a specialized group of EV logistics experts in our DHL Customer Solutions & Innovation unit. They track industry trends, investigate emerging solutions, and provide our business units and customers with the needed EV logistics expertise. Team EV works out of a growing network of DHL EV Centers of Excellence around the world, which serve as one-stop destinations for customers to access everything they need to optimize the entire electric vehicle supply chain.

Even more important is getting the logistics experts involved in the process from the get-go. That means exploring the logistics of new EV battery technologies and components as the tech is developed and not afterward. How you handle, transport, and store batteries depends on many factors, such as size, weight, power, and battery components. We’re already managing many of the EV supply chain challenges – and they will only increase as demand increases, more gigafactories go online, and new EV batteries enter the market.

EV battery logistics are evolving as fast as the technology itself. At DHL, we’re not just adapting, we’re leading the charge. From handling hazardous goods to building seamless reverse logistics networks for EV battery recycling, we’re helping shape the future of mobility – working with some of the world’s biggest automotive companies to tackle the unique challenges and develop EV battery supply chain solutions.

Don’t reinvent the wheel

As EV battery supply chains evolve, EV logistics expertise becomes a real game-changer. EV battery manufacturers and carmakers don’t want to revamp their supply chain whenever a new technology is developed. Batteries can represent up to 40% of an EV’s value and are classified as dangerous goods, meaning it’s essential to comply with regulations and maintain security and control across the value chain.

But new technologies do introduce new flows into the value chain. What’s more, the ever-changing dynamics of the EV market also force carmakers to adjust inventories and aftersales services frequently. Battery recycling is a must and even required by law in some markets, making sustainable handling and reverse logistics solutions crucial.

The internet of things (IoT) is becoming a vital tool in electric vehicle battery logistics. State-of-the-art sensors and centralized platforms allow supply chain managers to track individual batteries across the entire supply chain. We expect IoT technology to monitor a battery across its entire lifespan – or even track each battery component, creating a complete audit trail from production to the final use of the parts. This has enormous implications for battery recycling and end-of-life processing. 

The future of mobility is electric. There’s no doubt about it. But keeping up isn’t enough – we have to stay ahead. The EV revolution is transforming global supply chains, and battery logistics is at the heart of it. As battery developers and carmakers push forward, EV supply chain experts must innovate, collaborate, and create sustainable solutions that power the transition.

That’s precisely what we’re doing. Learn more about our Team EV and their efforts to help drive the mobility (r)evolution by following the link below.