The global search for the next generation of energy storage is in full swing. Lithium-sulfur batteries are increasingly becoming the focus of research and industry because they promise immense energy densities. But despite increasing investments, the technology stands at a crucial interface between the laboratory and the mass market.
Lithium-sulfur batteries come with three key promises. Firstly, there would be a significantly higher gravimetric energy density, i.e. more energy with a significantly lower weight. Secondly, the material costs should be lower in contrast to classic lithium batteries. And thirdly, this also reduces the dependence on raw materials such as nickel, cobalt and graphite.
It hardly seems surprising that the combined annual funding volume for research in this sector in Germany and Europe has increased from a few million euros in the 2010s to around 10.5 million euros in 2025.
However, although the analysis period of the funded research projects extends from 2012 to 2027, publicly funded science and industrial commercialization have so far largely formed separate ecosystems. This is the result of an analysis by the Fraunhofer Institute for Systems and Innovation Research (ISI). Accordingly, direct transfer into industrial prototypes or process technology is still weak.
So far, results have come primarily from other continents
The global patent landscape is currently heavily dominated by China and a few international players. So far, Europe has only appeared selectively in global events surrounding intellectual property. In general, the landscape presents a very heterogeneous picture. There is a structural difference between focused start-ups that advance the technology with high strategic consistency and established large Asian manufacturers.
In the latter case, lithium-sulfur batteries compete more as a long-term option to lithium-ion batteries. Although Europe has scientific expertise in materials, electrolytes and cell concepts, it is hardly able to translate this into a strong market position or industrial value creation. Instead, it is primarily agile pioneers from overseas who dictate the pace.
The US company Lyten is currently acting as a clear industrial pioneer, is already supplying cells for unmanned aerial vehicles (UAV) and is quickly building an international manufacturing base. In addition to a planned gigafactory in Nevada with an annual capacity of up to ten gigawatt hours, the company acquired European Northvolt capacities.
This also includes production for battery energy storage systems (BESS) in Poland with a capacity of up to six gigawatt hours. Lyten’s pilot line in São José has a yield of over 90 percent, with conversion of existing lithium-ion lines requiring less than three percent capital expenditure (capex).
International pioneers and ambitious roadmaps for lithium-sulfur batteries
According to the manufacturer, its cells are up to 50 percent lighter than nickel-manganese-cobalt batteries (NMC) and up to 75 percent lighter than lithium iron phosphate batteries (LFP). At the same time, other companies, such as Zeta Energy and Stellantis, are aiming for cooperation on electric vehicles by around 2030.
Solidion Technology, on the other hand, communicated a value of 380 watt hours per kilogram for 2025/2026. The target value here is 450 watt hours per kilogram and the cost target is less than 65 US dollars per kilowatt hour.
The German start-up Theion GmbH is pursuing a three-phase roadmap for lithium-sulfur batteries. In the final stage, the company plans to achieve 1,000 watt hours per kilogram, 1,000 cycles with a charging time of less than ten minutes and a reduction in costs and carbon dioxide footprint by around a third each.
Even established giants are testing the field: SVOLT tested solid-state sulfur battery prototypes with 20 amp hours for electric vehicle ranges of up to around 1,000 kilometers in 2022 and LG Energy Solution demonstrated a sulfur cathode in an all-solid-state architecture with around 1,500 milliamp hours per gram in pouch format in 2026.
The technological bottlenecks and the market potential in the niche
Despite these parameters from the laboratories, one thing should not be forgotten. There is currently no evidence of a widely available cell suitable for the automotive mass market. The technical data publicly communicated by the companies is only comparable to a limited extent.
Because they often refer inaccurately to different levels such as pure active material, coin cells, pouch cells or purely strategic milestones. Vehicle manufacturers therefore classify real series use as a medium-term option from 2030 onwards.
The first and most likely market opportunities therefore lie not in the mass market, but in weight-critical special niches. Examples include unmanned aircraft, aerospace and the defense industry. The growing defense market and the increased pursuit of battery technologies with lower raw materials and technological sovereignty could serve as a powerful catalyst.
However, the evolution from pure materials science basic research (2012-2018) through initial cell concepts (2019-2022) to application-oriented solid-state hybrid approaches and process scaling since 2023 makes it clear that development is progressing. Even if the big breakthrough still needs some time.
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