[DigitalToday reporter Jinju Hong] Nissan has moved to secure price competitiveness for all-solid-state batteries, seen as a core next-generation EV technology. It aims to cut production costs by using sulfur-based materials instead of expensive nickel and cobalt, and to gain an edge in battery competition with Chinese companies.

Electrek, an electric vehicle outlet, reported on June 4 that Nissan is pursuing a development project for a “Cost-effective, Resilient Solid-state Li-S” battery with UK battery company Gelion, Nissan Technical Centre Europe (NTCE) and the University of Oxford.

The project will run for 3 years with a total budget of about 3.4 million pounds ($4.5 million). Of that, Gelion will receive about 2.4 million pounds ($3.2 million) in the form of UK government support.

The focus is to develop an all-solid-state lithium-sulfur battery using a sulfur-based cathode material. Gelion’s sulfur-based cathode active material, called “NES,” features replacing costly nickel and cobalt used in conventional batteries with sulfur, a relatively cheap and abundant resource.

The three organisations plan to focus on developing an all-solid-state lithium-sulfur battery pack that can deliver both high energy density and high output. Nissan will provide its all-solid-state battery technology capabilities, while Gelion will be responsible for sulfur-based cathode technology.

The industry is watching whether the technology can be an alternative to respond to price competition led by Chinese battery makers. Investment firm Longspur Capital said in a recent report that Gelion’s sulfur-based cathode technology could be used to improve the performance of sodium-ion batteries as well as existing lithium-ion batteries. It also assessed that all-solid-state electrolyte technology is highly likely to become a key innovation in the next-generation battery market, and analysed that Gelion is also developing cathode technology in that field.

The commercialisation timeline also ties in with Nissan’s EV strategy. Gelion is targeting the release of a commercial prototype during fiscal 2027, which is similar to Nissan’s schedule after it said it would launch its first EV based on all-solid-state batteries in 2028. Longspur Capital forecast that Nissan will actively use Gelion’s sulfur-based technology to secure price competitiveness for future all-solid-state EVs.

Project leader Adrien Amig said, “This collaboration can be a game changer for the UK, Nissan and Gelion,” adding, “Sulfur-based technology can create particularly strong synergy with all-solid-state batteries.”

Nissan is also accelerating work to build production infrastructure. The company built its first all-solid-state battery pilot production line at its Yokohama plant in Japan in January, and is also working on mass-production cooperation with U.S. battery technology company LiCAP Technologies. Nissan expects that using LiCAP’s dry electrode process can reduce the drying and solvent drying steps required in the existing battery manufacturing process, bringing cost reductions and efficiency gains.

Still, the all-solid-state battery technology race is not Nissan’s alone. In China, several companies including BYD are already testing all-solid-state battery prototypes, and some companies are preparing to unveil vehicles equipped with all-solid-state batteries within months. BYD is also developing sulfide-based all-solid-state batteries and plans to start small-scale production from next year, then build a mass-production system around 2030.

Separately, Nissan is also expanding investment in its Sunderland plant in Britain. The company recently signed a memorandum of understanding to review the possibility of cooperation on vehicle production at the Sunderland plant with Chinese automaker Chery. It is pursuing battery technology development and a reorganisation of its production system at the same time as it moves to strengthen competitiveness in the EV market.