How does battery companies’ R&D expenditure vary?
R&D is key to how any future-facing market evolves, and in batteries, it determines which company will lead the next wave of energy innovation. Across leading cell manufacturers, R&D spending highlights sharply contrasting strategies and substantial differences within the global battery supply chain.
CATL leads the way in R&D
CATL has consistently led R&D investment, spending $2.58bn in 2024 and $1.39bn in H1 2025. This far outweighs the investments made by any of the next-largest players. Samsung SDI and LG Energy Solution (LGES) invested $0.95bn and $0.80bn, respectively, in 2024, and $0.49bn and $0.85bn in H1 2025. The remaining Chinese manufacturers – including Sunwoda, EVE Power, and Gotion High-tech – each invested less than $500m, although they remain important contributors to China’s broader innovation ecosystem.
LG is expanding its R&D investments
LGES’s R&D investment in H1 2025 surpassed that of the entire 2024 total by around 6%, underscoring its focus on developing a wide spectrum of battery technologies.Benchmark battery technology analyst Varnika Agarwal said, “When we talk about new technology, LG ES seems to be everywhere. From publicly disclosed information, it is working on high-voltage mid-nickel cathodes, the GM collaboration on lithium manganese-rich (LMR) materials, as well as solid-state and sodium ion chemistries. They’ve also spoken publicly about lithium sulphur and plan to begin LFP production in Europe soon and have started in the US already. In addition to this, it is likely they are working on other niche applications behind the scenes.”
What role will start-ups play in future battery tech?
While established battery manufacturers remain central to commercial scaling, but start-ups are helping push the boundaries of innovation, particularly in early-stage materials and cell design. However, uncertainty persists over the commercial readiness of many start-up technologies.Agarwal added, “Solid-state remains a key area of focus for battery start-ups, with sodium ion and lithium sulphur receiving attention to a lesser extent. Many of these companies have been operating for five to ten years, partnering with large OEMs, but true market success has yet to be demonstrated as timelines extend into the next decade.”
Yet, momentum around battery start-ups – particularly those outside China – has grown sharply. Markets have begun recognising their potential to diversify supply chains and reduce reliance on Chinese production.Benchmark’s battery start-up index has risen by more than 100% between January and November 2025, while Benchmark’s major battery cell index rose 13% over the same period reflecting this surge in investor interest and strategic relevance.
> 
> 
> 
> 
> 
> 
> 
>