Dry Electrode Technology Industry Research: with a projected market growth from US$41 million in 2024 to US$575 million by 2031

According to the recent report from QYResearch, Dry Electrode Technology is entering a decisive stage of industrial validation. After years of laboratory and pilot-scale development, the past two years have brought concrete progress in pilot lines, customer shipments, and OEM acceptance testing. With a projected market growth from US$41 million in 2024 to US$575 million by 2031 at a CAGR of 46.5% (2025-2031), the industry is now positioned to make solvent-free manufacturing a mainstream solution in batteries and capacitors.

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Leading Companies

Tesla
LiCAP Technologies
GMCC Electronic Technology
Plannano Technology
Sakuu
LG
AM Batteries
Tsingyan Electronic
Panasonic
PowerCo

Applications

Capacitors
Lithium Batteries
Other

Classification

Adhesive Fibrillation Method
Spraying Method

Latest Data

· Market Title: Global Dry Electrode Technology Market Outlook, In-Depth Analysis & Forecast to 2031

· Forecasted Market Size 2031: US$575 million

· CAGR (2025-2031): 46.5%

· Years Covered: 2025-2031

· Regions Covered: North America, Europe, Asia Pacific, South America, Middle East & Africa

· Segmentation by Type: Adhesive Fibrillation Method; Spraying Method

· Segmentation by Application: Capacitors; Lithium Batteries; Other

· Coverage: Revenue and volume forecast, company share, competitive landscape, growth factors and trends, value chain overview, strategic recommendations

2025 Company Achievements

AM Batteries - In late 2024, the company shipped its first rolls of dry-coated electrodes from an engineering pilot line and opened a Customer Success Center in Massachusetts. Recognized for energy and CO2 reductions of up to 40 percent, AM Batteries has positioned its Powder-to-ElectrodeTM technology as a direct path for gigafactories.

LG Energy Solution - Established a pilot dry-electrode line at its Ochang facility by the end of 2024, targeting stepwise commercialization in 2028. This program marks one of the most structured industrial roadmaps for solvent-free electrode production.

Tesla - Tested 4680 cells with dry-coated cathodes for use in Cybertruck battery packs during 2024. Although challenges remain in throughput, Tesla is committed to scaling dry-coating processes across its in-house production.

PowerCo (Volkswagen Group) - In 2025, PowerCo completed factory acceptance testing of a dry-coating system developed with Koenig & Bauer. Early trials demonstrated up to 30 percent energy savings and 15 percent floor-space reduction compared to conventional lines.

LiCAP Technologies - In 2025, LiCAP produced more than 500 meters of dry-coated cathode film using its Activated Dry Electrode® process. The company also entered a strategic partnership with Dürr and Cellforce to establish a pilot plant in Germany, planned for operation in 2026.

Panasonic Energy - Opened a new facility in Osaka in 2024 to validate dry-coating technologies at production scale. The site is focused on shortening the development-to-industrialization cycle for next-generation batteries.

Equipment Providers - China's LEAD announced a high-speed dry-coating process capable of reducing energy consumption by more than 35 percent and costs by more than 20 percent. Fraunhofer IWS continued advancing its DRYtraec approach, emphasizing solvent-free manufacturing as an upcoming industry standard.

Product Snapshots

Tesla - 4680 Cell with Dry-Coated Cathode

· Pre-industrial variant of Tesla's cylindrical 4680 cell.

· Uses dry coating on the cathode in addition to earlier dry anode work.

· Vehicle-level testing carried out in 2024 for Cybertruck packs.

· Potential to reduce cost and CO2 footprint by eliminating solvents and drying ovens.

LG Energy Solution - Ochang Pilot Line

· Pilot dry-electrode process for both anode and cathode materials.

· Transition from lab to pilot completed in late 2024.

· Mass-production readiness targeted for 2028.

· Designed for rollout across multiple global production sites.

AM Batteries - Powder-to-ElectrodeTM Dry Deposition

· Solvent-free spray deposition of powders directly onto current collectors.

· Eliminates long drying ovens and solvent recovery steps.

· First customer rolls delivered in 2024 from a pilot line.

· Demonstrated potential energy and CO2 savings up to 40 percent.

LiCAP Technologies - Activated Dry Electrode® (ADE)

· Solvent-free pressing method to create dense, conductive films.

· In 2025, produced over 500 meters of continuous cathode film.

· Collaborative pilot plant with Dürr and Cellforce to begin operation in 2026.

· Targets lower costs and environmental impact compared to slurry methods.

PowerCo (Volkswagen Group) - Dry Coating System

· Roller-based dry coating co-developed with Koenig & Bauer.

· Factory acceptance test completed in 2025.

· Demonstrated around 30 percent energy savings and 15 percent footprint reduction.

· Planned integration into gigafactories in Europe and North America.

Downstream Customers

Volkswagen Group
Porsche AG
Tesla, Inc.
Cellforce Group GmbH
Siemens AG
ABB Ltd.
Škoda Transportation a.s.
Medcom Sp. z o.o.
Koenig & Bauer AG
Hitachi Energy Ltd.
CAF S.A.
Alstom SA
General Motors Co.
BMW Group
Hyundai Motor Company

Market Trends

Lab-to-Pilot Transition

2024 and 2025 marked the transition from laboratory-scale demonstrations to tangible pilot operations. AM Batteries began shipping customer-ready electrode rolls, while LiCAP produced long continuous cathode films. LG Energy Solution established its first pilot line, underscoring that the industry is entering a validation phase with direct customer engagement.

Equipment Industrialization

Equipment development is advancing rapidly. PowerCo's acceptance testing of its dry-coating system demonstrates readiness for factory deployment. LEAD's high-speed lines highlight that solvent-free coating can meet industrial throughput standards while reducing energy costs.

Energy, Footprint, and Compliance Gains

One of the strongest drivers is the reduction of manufacturing energy and space requirements. Reported savings range from 30 to 40 percent in energy and up to 15 percent in factory footprint. Eliminating solvents like NMP also reduces compliance costs and accelerates permitting for new facilities.

Enabling High-Loading Electrodes

Dry electrode methods are enabling thicker, high-loading electrodes, improving energy density per cell. By removing long drying steps, manufacturers can shorten cycle times while producing higher-performance electrodes. This supports roadmaps for fast charging and higher-capacity packs.

OEM Engagement and Partnerships

Automakers and battery cell developers are increasingly involved. Tesla is testing dry-coated cathodes in vehicles, PowerCo validated its first systems, and Porsche's Cellforce is co-building a pilot facility with LiCAP and Dürr. These moves show OEMs no longer view dry coating as distant research but as an industrial option.

Capacitors Lead in Deployed Systems

While lithium-ion batteries dominate headlines, dry-electrode supercapacitors are already deployed at scale. Siemens, Medcom, and Škoda use solvent-free electrodes in rail and industrial braking energy recovery systems. These applications provide proof of durability and cycle life, strengthening the case for lithium-ion adoption.

Geographic Distribution

Germany is central, with PowerCo, Cellforce, and Siemens active in dry electrode development. The United States hosts AM Batteries' pilot and customer center. Japan's Panasonic advances process validation, while Korea's LGES has set a timeline to mass production. China's LEAD pushes ahead in equipment, creating a globally diversified landscape.

Risks and Challenges

Scaling to industrial production is not without issues. Tesla's efforts show the challenge of balancing throughput and yield with dry cathodes. Binder fibrillation, powder flow, and calendaring uniformity remain critical. Manufacturers are therefore expanding cautiously through pilot lines before committing to full gigafactory adoption.

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