scale, minor defects are no longer minor. They reduce yield, increase safety risk, and draw scrutiny from insurers and investors alike.
This marks a shift from the 2010s. The industry focused on accelerating adoption and validating technologies over eliminating scrap and process variability. But today, in what's been called the “Battery 3.0” era, the emphasis is switched from proving viability to proving durability.
is key to securing battery performance and longevity. High-precision imaging spots cracks, welding flaws, and contamination early in the process. This can help prevent defects that can lead to cell degradation and increase the chance of short circuits and fires. Quality control to move at the speed of production.
From rapid innovation to scaling and stability
Since 2020, research and development has shifted toward consolidation.
Battery manufacturing now operates at full commercial scale. Incidental flaws translate directly into financial loss, safety incidents, and increasing insurance scrutiny. Defects scale at the same rate as throughput. Quality systems must integrate seamlessly into high-speed production without slowing output.
Traditional manual inspection and offline sampling no longer meet the speed and volume needed. Automated, inline inspection supports consistent, high-quality output at scale. Machine vision sensors and high-speed cameras detect defects on electrodes, separators, and cell casings in real time. The result is improved yield, stronger traceability, and safer batteries.
Automotive remains the base volume driver, growing at 22 percent. The market is diversifying. Electric trucks grew more than 75 percent in 2024. They account for 3 percent of global EV battery demand today, with projections reaching 8 percent by 2030[KK1.1]. Last-mile delivery fleets are already fully electric, and heavy transport is closing the gap.
Investment is still flowing, but capital is more selective. Funding now favors companies grounded in real customer demand, disciplined execution, and resilient operations. Expansion plans are still ambitious, yet operational credibility drives confidence.
Collaborative ventures are also increasing. Komatsu Heavy Equipment acquired American Battery Solutions in 2023, integrating high-voltage lithium technology into electrified off-highway and mining equipment. Battery adoption now extends well beyond passenger vehicles.
Broadening global markets
China and the United States initially dominated lithium-ion production. Trade agreements and tariffs are reshaping supply chains. A 6 percent tariff agreement between China and Canada enables the import of 49,000 Chinese EVs annually, expanding lower-cost options. As competition intensifies, battery quality must remain consistent and demonstrable.
China still leads global lithium-ion battery production, while using roughly half of its output domestically. Production expanded from two EV battery manufacturers in 2005 to more than three quarters of global cell supply within two decades. Growing global demand is pushing other regions to build independent supply chains, from raw material sourcing to quality inspection.
Reliability drives growth
Large-scale failures highlight the importance of resilient energy systems. The 2003 Northeast Blackout affected 50 million people across eight US states and Ontario, Canada. A single local power line failure triggered the shutdown of 21 power plants within minutes. The event reinforced the need for reliable stationary power and dependable backup systems.
Battery systems now support grid stability, renewable integration, and electrified transport. The opportunity for market growth is still huge. But reliability under peak demand is essential. Insurers are increasing scrutiny. Allianz advises manufacturers on how to implement rigorous safety protocols for battery inspection and storage. Quality assurance has become both a technical and financial requirement.
Strategic scalability
Global manufacturing capacity for li-ion batteries could exceed 9TWh by 2030. Quality systems must scale alongside this growth. Confidence in electrification depends on visible, measurable safety and performance standards.
Fig 1. Cost breakdown of a lithium-ion battery cell. Materials account for ~72% of total cost, with the cathode (44%) and separator (17%) being the largest contributors. Source: AMETEK Surface Vision.
Factories will continue to be built. Those with scalable, data-driven quality systems are the ones that will endure. Incorporating
surface inspection as a defined process step strengthens product quality assurance and supports long-term operational resilience. The Battery 3.0 phase demands disciplined execution.
With
AMETEK Surface Vision’s inspection technology, manufacturers can build quality in from the start.
SmartView is the most advanced
surface inspection platform available to the market.
It enables meticulous examination at all critical stages of lithium-ion cell production, including anode/cathode coatings and thin-film separators, solid-stage battery, and fuel cell components. This provides crucial quality assurance, enhancing production yield, ensuring safety, and reducing costly, or even catastrophic defects.
Click here to learn more about implementing surface inspection solutions at your battery manufacturing facility