Why battery cell formation consumes a third of production cost
Battery cell formation accounts for up to one-third of total cell manufacturing costs — a proportion that makes it the single largest cost driver at the end of the production line, yet one that has attracted comparatively limited dedicated patent activity relative to electrode materials and cell chemistry. The process transforms an assembled but electrochemically inert cell into a functional energy storage device through three interconnected process domains: electrochemical formation and finishing (charge/discharge cycling to establish the SEI layer, electrolyte wetting, and degassing); electrode manufacturing upstream of formation (slurry casting, dry electrode coating, calendering, and laser texturing); and advanced cell architectures requiring specialized formation, particularly all-solid-state batteries where formation involves vacuum deposition, sintering, and layer crystallization.
A 2023 literature review structured the formation step into pre-treatment, formation procedure, and quality testing sub-steps, explicitly framing cell finishing as representing approximately 30% of cell production cost. Formation also imposes major capital and floor-space requirements: cells must be cycled individually under controlled current profiles for extended periods, requiring large arrays of formation channels and significant energy input. As published by WIPO in its battery technology tracking, intellectual property in energy storage manufacturing is accelerating across all major jurisdictions — but the formation step remains underrepresented relative to its economic weight.
The solid electrolyte interphase (SEI) is a passivation layer that forms on the anode surface during the first charge cycle. Its quality — thickness, uniformity, composition — directly governs cycle life, safety, and rate capability. Formation protocols are designed primarily to control SEI formation conditions, making the SEI the central quality variable of the entire formation step.
Innovation in this field is increasingly bifurcated. One branch optimises existing liquid-electrolyte LIB formation for speed, cost, and digital traceability — targeting gigafactory floor-space and energy cost reductions. The other develops entirely new formation paradigms for next-generation solid-state cells, where “formation” more closely resembles semiconductor thin-film deposition than conventional battery cycling.
Battery cell formation — encompassing SEI layer creation, electrolyte wetting, degassing, and quality testing — accounts for up to one-third of total lithium-ion cell manufacturing costs, according to a 2023 review of cell finishing processes.
From 2013 to 2026: how the patent landscape evolved
The battery cell formation patent landscape has moved through four identifiable phases between 2013 and 2026, shifting from foundational hardware inventions toward protocol digitalization and solid-state vacuum deposition — with the most recent filings showing OEM-level verticalization of formation chemistry.
The foundational period (2013–2017) established core methodologies. Robert Bosch GmbH’s 2014 DE patent introduced block-shaped formation currents delivered via MOSFET switching with energy recuperation back into the supply network — a foundational step toward energy-efficient formation stations. Concurrently, Elevated Materials (operating as a US LLC) filed solid-state battery fabrication patents beginning in 2014, covering green tape casting and lamination-sintering approaches. Academic literature on ALD for LIBs appeared in this window.
The development cluster (2018–2021) saw intensity accelerate significantly. Dyson Technology Limited accumulated a portfolio of multilayer solid-state battery formation methods across US, WO, and CN jurisdictions (2019–2020). Applied Materials filed thin-film battery manufacturing methods in KR and EP. IBM filed two US patents on all-solid-state thin-film battery fabrication using lift-off CMOS-compatible processes (2018 and 2020). Academic literature on PVD cathode deposition, laser texturing, and curtain coating for solid-state electrolytes all appeared in this cluster.
The maturation and optimization phase (2022–2024) showed a pivot toward protocol optimization, digitalization, and cost reduction. A 2021 paper linking formation protocol design to long-term cycle life via early-life resistance diagnostics was followed by a 2024 KR patent from the University of Michigan formalizing this as an IP-protected method. Dry electrode manufacturing emerged as a distinct cluster, with a 2024 benchmark study cataloguing competing dry-coating technologies.
The emerging edge (2025–2026) includes Dyson Technology’s 2026 US patent for crystalline cathode layer formation via remote plasma sputtering, a 2025 CN patent from Changsha Xinkang New Materials on lithium phosphate solid electrolyte targets for PVD processes, LG Energy Solution’s 2025 US patent on pre-lithiation of solid-state battery anodes, and China FAW Group’s 2026 CN pending application on alloy-based battery fabrication for vehicles.
“The formation step alone drives major capital and floor-space requirements in cell factories — yet formation protocol IP is underprotected relative to materials IP.”
The four technology clusters shaping formation innovation
Patent and literature data across 2013–2026 resolve into four distinct technology clusters, each addressing a different dimension of the formation cost and quality problem — from electrochemical protocol speed to vacuum deposition physics for solid-state cells.
Cluster 1: Electrochemical formation protocol optimization
This cluster addresses the charge/discharge cycling sequence applied to assembled liquid-electrolyte LIB cells. The core technical challenge is balancing formation speed (which reduces cost and floor space) against SEI quality (which governs cycle life and safety). A 2021 literature study demonstrates that cell internal resistance at low state-of-charge, measurable in seconds at end-of-line, correlates with cycle life and can serve as a rapid screening signal for new formation protocols — eliminating the need for long-duration aging tests. The Regents of the University of Michigan formalized this as an IP-protected method in a 2024 KR patent, comparing internal resistance of cells formed under different protocols to select optimal formation conditions. Current optimization vectors identified in a 2023 review include EIS-based quality inspection, second electrolyte filling for prismatic cells, and degassing process improvements.
A 2021 study demonstrated that cell internal resistance at low state-of-charge — measurable in seconds at end-of-line — correlates with long-term cycle life and can serve as a rapid screening signal for new battery formation protocols, eliminating the need for extended aging tests.
Cluster 2: Dry electrode manufacturing and solvent-free processing
Eliminating the solvent-based slurry coating and energy-intensive drying steps is the most active cost-reduction frontier in conventional LIB manufacturing. A 2024 benchmarking study cataloguing competing dry-coating technologies identifies PTFE-based fibrillation and related dry routes as front-runners, assessed against readiness level, energy savings potential, and scale-up feasibility. A 2023 literature survey of PTFE binder technology covers its impact on electrode loading, energy density, and formation behavior. A 2022 IN pending patent from Roorkee Institute of Technology describes a dry blending and warm activation process producing electrodes with comparable performance to slurry-cast counterparts. According to IEA analysis on battery manufacturing energy intensity, solvent drying is one of the most energy-intensive steps in conventional cell production, making dry electrode routes a structurally important decarbonization lever as well as a cost reduction tool.
Map the full dry electrode and formation process patent landscape in PatSnap Eureka — filter by assignee, jurisdiction, and filing date.
Explore Formation Patents in PatSnap Eureka →Cluster 3: Physical vapor deposition and thin-film formation for solid-state batteries
For all-solid-state thin-film batteries, “formation” is redefined as sequential vacuum deposition of cathode, electrolyte, and anode layers combined with annealing, crystallization, and plasma treatment steps. This cluster is highly active across CN, US, and WO jurisdictions. Dyson Technology Limited’s 2026 US active patent claims remote plasma generation to sputter-deposit crystalline cathode layers, enabling controlled phase formation without post-deposition annealing. Southern University of Science and Technology’s 2024 CN active patent discloses simultaneous multi-target magnetron sputtering of current collector, electrode, LLZTO electrolyte, and counter-electrode films in a single vacuum environment to improve solid-solid interfacial contact. IBM’s 2018 US patent covers CMOS-compatible lift-off patterning for LiCoO₂ thin-film batteries at sub-200 nm cathode thicknesses, targeting microelectronics integration. Research published in journals indexed by Nature has tracked the rapid maturation of ALD and PLD as precision deposition tools for solid-state electrolyte layers.
Cluster 4: Digitalization and simulation-based formation line planning
Formation lines require large floor area, high energy consumption, and long cycle times. Digital modeling of the process chain — from electrode microstructure to formation outcome — enables optimization before physical investment. A 2021 literature review covers digital twin frameworks applicable to the formation step and their integration with data acquisition infrastructure in gigafactories. A 2022 publication presents a process-chain model predicting quality outcomes from formation parameters, enabling knowledge-based rather than trial-and-error process decisions. A separate 2022 literature paper uses discrete event simulation to optimize formation line layout, machine utilization, energy flow, and output, with explicit treatment of regulatory and cost constraints. Standards bodies including ISO are developing data exchange frameworks for battery manufacturing digital twins, signalling that digitalization of formation is transitioning from academic research to operational infrastructure.
The dataset reveals that formation protocol optimization — including resistance-based early-life diagnosis and fast formation cycling — has generated limited patent filings compared to electrode and electrolyte materials patents. R&D teams entering this space face lower freedom-to-operate risk on protocol methods, but should monitor the University of Michigan’s 2024 KR filing and related US equivalents as this gap closes.
Geographic and assignee concentration: where IP is accumulating
China accounts for the largest volume of patent filings in the retrieved dataset, spanning both conventional LIB formation optimization and advanced thin-film solid-state architectures — a dual focus that distinguishes China’s formation IP strategy from most other jurisdictions.
Chinese assignees in the dataset include Southern University of Science and Technology (two active CN patents on all-solid-state thin-film LIB fabrication via magnetron sputtering, 2022 and 2024), Shenyang Haoxun Microelectronics Technology (two CN patents on stacked all-solid-state thin-film batteries, 2020 active and 2023 active), China FAW Group (one CN pending patent on vehicle battery fabrication, 2026), Guoxuan High-Tech (two CN active patents on PLD in-situ fabrication of micro solid-state thin-film LIBs, 2016 and 2019), and Changsha Xinkang New Materials (one CN pending patent on PVD solid electrolyte targets, 2025). Tianneng Battery (Wuhu) holds two CN active patents on battery grid curing processes (2019, 2021).
Dyson Technology Limited is the most prolific single assignee in the dataset, with filings across US, WO, GB, and CN jurisdictions from 2019 to 2026, covering multilayer solid-state battery thermal processing, crystalline cathode layer formation via remote plasma sputtering, and continuous manufacturing methods with polymer interlayers. This multi-jurisdiction coverage creates structurally important blocking positions for parties seeking to commercialize PVD-based solid-state battery formation at scale.
US assignees include IBM (two now-inactive US patents, 2018–2020, covering CMOS-compatible thin-film battery fabrication), Elevated Materials US LLC (three US patents, 2014–2022, all inactive), Sakti3 (one US active, 2016), LG Energy Solution (one US active, 2025, on solid-state anode pre-lithiation), and Applied Materials (EP and KR filings on thin-film battery manufacturing). Germany is represented solely by Robert Bosch GmbH’s 2014 DE patent on formation hardware with energy recuperation — the only purely formation-hardware patent in the set. Korea’s filings include Applied Materials (2015 and 2019, both inactive) and the University of Michigan’s formation protocol optimization patent (2024, pending). According to EPO patent analytics on clean energy technologies, battery manufacturing is among the fastest-growing filing categories across major patent offices, with Asian applicants — particularly from China and South Korea — accounting for a growing share of global grants.
Dyson Technology Limited is the most prolific single assignee in the battery cell formation patent dataset covering 2013–2026, with active filings across US, WO, GB, and CN jurisdictions covering remote plasma sputtering for crystalline cathode layer formation, multilayer solid-state battery thermal processing, and continuous manufacturing methods with polymer interlayers.
Track Dyson Technology, LG Energy Solution, and other key formation assignees — monitor their new filings in real time with PatSnap Eureka.
Monitor Assignees in PatSnap Eureka →Six emerging directions redefining formation process design
The most recent filings and publications (2023–2026) within the dataset point to six specific technical directions that are redefining what “formation” means — moving it beyond the conventional charge/discharge cycle into plasma physics, chemical pre-treatment, simulation environments, and materials infrastructure.
1. Remote plasma sputtering for crystalline cathode formation without post-annealing. Dyson Technology’s 2026 US patent (active) and its WO and GB predecessors represent a clear trajectory: eliminating high-temperature annealing steps from solid-state cathode formation by controlling crystal phase directly during deposition via remote plasma. This reduces the thermal budget and enables temperature-sensitive substrate compatibility.
2. Pre-lithiation as a formation step for all-solid-state anodes. LG Energy Solution’s 2025 US patent describes pre-lithiation of solid-state battery negative electrodes at 45–80°C for 1–4 weeks, forming a uniform SEI on solid-electrolyte particle triple points. This represents a new formation paradigm: chemical rather than electrochemical SEI establishment, potentially decoupling formation from the cell assembly line.
3. Vehicle-specific alloy anode formation. China FAW Group’s 2026 CN pending application addresses formation of alloy-based battery cells with tuned metal fusion ratios to simultaneously meet stress-buffering and ion-transport performance requirements for automotive deployment. This signals OEM-level verticalization of formation chemistry for specific vehicle specifications.
4. Multi-target single-vacuum sequential deposition. Southern University of Science and Technology’s 2024 CN active patent on simultaneous multi-target sputtering for in-situ solid-solid interface formation — eliminating vacuum breaks between layer depositions — addresses interfacial instability as the primary failure mode of thin-film battery formation.
5. Simulation-driven formation line design for solid-state gigafactories. A 2023 literature publication introduces modular factory simulation specifically accounting for dry-room environment requirements of solid-state battery production — treating formation environment (controlled dew point, HVAC capital costs) as an optimization variable alongside protocol parameters.
6. Solid electrolyte target engineering for PVD formation. Changsha Xinkang New Materials’ 2025 CN pending patent on lithium phosphate solid electrolyte sputtering targets — optimized via spark plasma sintering at controlled ramp rates and pressures — represents enabling materials infrastructure for high-throughput thin-film formation lines.
LG Energy Solution’s 2025 US patent describes a chemical pre-lithiation formation method for all-solid-state battery negative electrodes conducted at 45–80°C for 1–4 weeks, forming a uniform SEI layer at solid-electrolyte particle triple points — a departure from conventional electrochemical formation cycling.
Strategic implications for R&D and IP teams
Five strategic signals emerge from the battery cell formation patent and literature landscape for R&D directors, IP counsel, and manufacturing strategy teams evaluating this space in 2026.
Formation protocol IP remains underprotected relative to materials IP. R&D teams entering formation protocol optimization — including resistance-based early-life diagnosis and fast formation cycling — face lower freedom-to-operate risk than in electrode or electrolyte materials. However, the University of Michigan’s 2024 KR filing and any US equivalents should be monitored closely as this gap begins to close. The gap also represents a filing opportunity for manufacturers with proprietary protocol data.
Dyson Technology Limited holds a structurally important position in crystalline thin-film formation. With active patents across US, WO, GB, and CN jurisdictions covering remote plasma sputtering, thermal processing of multilayer cells, and continuous manufacturing with polymer interlayers, Dyson represents a blocking position for any party seeking to commercialize PVD-based solid-state battery formation at scale. IP landscape analysis prior to product development in this space is advisable. A patent landscape analysis via PatSnap can surface the full scope of these blocking positions and design-around opportunities.
Dry electrode formation is the highest-ROI near-term process innovation for conventional LIB lines. The 2024 benchmarking study identifies dry coating as eliminating the single largest energy cost in formation-upstream processing. Combined with PTFE-binder solvent-free approaches, this cluster is approaching commercialization readiness and represents a defensible differentiation vector for cell manufacturers competing on cost.
China’s manufacturing research infrastructure is building formation capability across both present-generation and next-generation chemistries simultaneously. Multiple CN assignees are filing in thin-film ASSB formation at the same time Chinese literature dominates conventional LIB manufacturing optimization reviews. This dual focus suggests structural depth rather than a narrow technology bet.
Formation digitalization will become a competitive differentiator at gigafactory scale. Discrete event simulation, process-chain mechanistic modeling, and digital twin frameworks for formation lines are transitioning from academic outputs to operational tools. Teams who integrate formation parameter data with cell performance prediction models will achieve quality and yield advantages that are difficult to replicate through protocol adjustment alone. PatSnap’s innovation intelligence platform supports this kind of cross-domain signal integration across patent, literature, and technology readiness data.
“China is building formation capability across both present-generation and next-generation chemistries simultaneously — a dual focus that suggests structural depth rather than a narrow technology bet.”