"K-Battery Must Secure Leadership in Physical AI with All-Solid-State Technology"

PwC Consulting Releases Report

As interest in humanoid robots increases, expectations are rising for the commercialization of physical artificial intelligence (AI). There is an analysis suggesting that domestic companies need to take the lead in all-solid-state batteries, which are being discussed as the next-generation solution for physical AI.

On May 7, PwC Consulting announced the publication of a report titled "All-Solid-State: A Step Closer to the Dream Battery." The report diagnoses the reasons behind the growing strategic importance of all-solid-state batteries in light of the spread of physical AI and humanoids, and presents the global technological competitive landscape as well as future directions for Korean batteries.

According to the report, current major humanoid robots are structurally forced to undergo frequent charging and replacement due to limited battery space and weight restrictions. This results in reduced work continuity and idle time. The analysis indicates that there are still constraints before their deployment in actual industrial sites. Therefore, the report identifies "high-energy density batteries that last long on a single charge" as the key competitive factor in the race to commercialize physical AI.

All-solid-state batteries are products that replace the liquid electrolyte—one of the core materials of lithium-ion batteries—with a solid electrolyte. They are considered next-generation batteries capable of improving both safety and energy density simultaneously. The report explains that all-solid-state batteries can achieve energy density two to three times higher than conventional lithium-ion batteries, making them especially suitable for the field of physical AI, which demands both high safety and energy efficiency.

In particular, the report forecasts that robots, drones, aerospace, and defense industries will be the first to see limited adoption. Since the price per kWh of all-solid-state batteries is estimated to be about five to six times that of lithium-ion batteries, it is likely that early commercialization will focus on areas where performance outweighs cost considerations. On the other hand, the electric vehicle market is highly price-sensitive, and the characteristics of all-solid-state batteries may differ from the existing lithium-ion battery-based vehicle platforms, safety certifications, and standards systems, meaning it will take more time before widespread adoption occurs.

The global competition surrounding all-solid-state batteries is also rapidly intensifying. Japan is enhancing its leading position by increasing technological completeness, mainly through its public-private demonstration project for next-generation all-solid-state batteries (SoliD?NEXT). China is seeking to set global standards by establishing its own technical standards for all-solid-state batteries. In contrast, South Korea has seen a rapid increase in all-solid-state battery-related patent applications, but it is still in a catch-up phase in terms of development speed and scale.

At the corporate level, major battery and automaker companies are moving to mass-produce all-solid-state batteries around 2027–2030. Overseas, leading players include Toyota, CATL, BYD, Gotion, and Factorial. In Korea, companies such as Samsung SDI, LG Energy Solution, SK On, and Hyundai Motor are pursuing the development of all-solid-state batteries. Competition is unfolding simultaneously across the value chain, from raw materials to solid electrolytes and battery cells.

The report evaluated that these changes could represent an important turning point for Korea's battery industry. The transition to all-solid-state technology could partially ease the China-centered material supply chain structure, and in particular, lithium metal anodes and anode-free structures, which are gaining attention in all-solid-state batteries, have the potential to reduce reliance on conventional graphite anodes. It is expected that this will contribute both to mitigating supply chain risks and strengthening the "K-battery premium."

Additionally, since all-solid-state battery technology is still at an early stage, the report advised that Korea should proactively strengthen its influence on the international standardization stage. To this end, the report highlighted the following main tasks: reviewing and transforming the supply chain in response to all-solid-state batteries, leading the establishment of international technical standards, strategic integration with downstream industries, and effective financial and policy support. The full report is available on the PwC Consulting website.

Woochul Jeong, Partner at PwC Consulting, stated, "Victory in the competition for physical AI technology depends not only on how smart it is, but also on how long it operates," adding, "It is time to shed light on the strategic value of the secondary battery industry, alongside the recent investment and policy focus on AI and semiconductors."

This content was produced with the assistance of AI translation services.