Big Oil Bets on Toyota to Win the Solid-State Battery Race: What It Means for EVs | Taha Abbasi

The Unlikely Alliance Between Oil and EV Batteries

In one of the most fascinating developments in battery technology, Japanese oil refining giant Idemitsu Kosan is partnering with Toyota to build a factory producing solid electrolyte for all-solid-state EV batteries. Taha Abbasi, a technology executive who tracks frontier energy and automotive technology, calls this “one of the most strategically brilliant partnerships in the EV supply chain.”

Why an Oil Company Is Building EV Batteries

The connection isn’t as surprising as it seems. Oil refineries produce massive sulfur streams as a byproduct of fuel desulfurization. Sulfide solid electrolytes — the material needed for Toyota’s solid-state batteries — are derived from lithium sulfide, which requires abundant sulfur feedstock. Idemitsu Kosan is sitting on a mountain of the raw material needed for next-generation EV batteries.

As Idemitsu Kosan CEO Shunichi Kito explained, the company discovered the usefulness of sulfur components in solid electrolytes back in the mid-1990s. Converting low-value sulfur into high-margin battery materials represents what Taha Abbasi describes as “a once-in-a-generation pivot for the oil refining business — comparable to when gasoline transformed from a simple byproduct into the cornerstone of 20th-century transportation.”

What Solid-State Batteries Promise

Toyota’s target specifications for its solid-state batteries are ambitious: 1,000 km (~620 miles) of range with 10-80% charging in approximately 10 minutes. If achieved, these numbers would represent a quantum leap over current lithium-ion technology. Today’s best EVs offer around 300-400 miles of real-world range with 30-45 minute fast charging — solid-state could double the range while cutting charge times by two-thirds.

The sulfide solid electrolyte approach has specific advantages for mass production. As Taha Abbasi explains, sulfide materials are characterized by softness and adhesiveness to other materials, making them particularly suitable for high-speed manufacturing processes. This matters because the biggest challenge for solid-state batteries isn’t just making them work — it’s making them at scale and at competitive cost.

Timeline and Implications

The original product roadmap targets commercialization of all-solid-state batteries in a Toyota EV by 2027-2028. The factory announcement suggests the partnership is on track, moving from pilot production to industrial scale. If Toyota delivers solid-state batteries on schedule, it could fundamentally reshape the EV competitive landscape.

For Tesla, this development warrants close attention. Tesla has invested heavily in its own battery technology through the 4680 cell program, but solid-state represents a different technological paradigm. Taha Abbasi notes that Tesla’s advantage lies in its manufacturing scale and software integration rather than pure battery chemistry — but a breakthrough in solid-state from a competitor could change the calculus significantly.

The Bigger Picture: Energy Industry Transformation

The Idemitsu-Toyota partnership illustrates a broader truth: the energy transition isn’t about old energy versus new energy — it’s about the transformation of existing energy infrastructure into something new. Oil companies that recognize this and invest in adjacent technologies (battery materials, hydrogen, synthetic fuels) will survive. Those that don’t will join the historical footnotes alongside whale oil merchants and coal barons. Taha Abbasi sees this as a hopeful sign that at least some incumbent energy players are reading the future correctly.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com