Global battery demand is exploding, and so are the stakes. Costs have plummeted from over $700 per kilowatt-hour a decade ago to around $115 today, with analysts expecting prices to drop below $80 by 2026. At the same time, the industry is racing to build gigafactories, but many still face scrap rates of 20–30 percent, burning through hundreds of millions in wasted materials each year. In this environment, the real challenge isn’t just new chemistries or faster production. It’s mastering quality, yield, and traceability across the chain, which, in my eyes, is the hidden key that determines if batteries can be made safely, affordably, and at scale.

Demand is Surging, but Costs Must Fall

The battery industry is charging ahead at a speed few imagined just ten years ago. While electric vehicles steal the spotlight, demand is also surging in robotics, power tools, and energy storage. Across Europe, the US, and Asia, gigafactories are springing up to meet this appetite.

Figure 1. Cost breakdown of a lithium-ion battery cell. Materials account for ~72 percent of total cost, with the cathode (44 percent) and separator (17 percent) being the largest contributors. (Image: AMETEK)

Yet there is a paradox: while demand rises, costs must continue to fall. By 2030, analysts say prices will need to halve again if electrification is to remain commercially viable. That pressure explains the rush towards innovations like dry electrode coating, which could eliminate 20-30-meter drying ovens from production lines, slashing both capital and energy costs.

At the same time, new technologies are entering the market: solid-state batteries, still expensive but promising; flow batteries for stationary storage; and 3D-printed batteries with flexible geometries for niche uses. The rise of fully automated, lights-out manufacturing 24/7 plants run entirely by robots shows an industry in flux.

But these advances cannot reach their full potential without strong quality assurance.

The Costly Reality of Defects

Every manufacturer knows that defects come at a cost. In batteries, the impact multiplies at every stage. Catch a flaw in electrode coating early, and you lose only foil and slurry. Miss it until cell assembly or pack integration, and the cost multiplies 10 to 50 times. By then, you’ve added electrolyte filling, cycling, modules, casings, and weeks of testing. A single defective cell can compromise an entire pack.

And the consequences aren’t just financial. Safety is on the line. Microscopic particles that pierce the nine-micron separator foil between cathode and anode can cause short circuits, leading to thermal runaway.

Where Defects Arise and Why Early Detection Matters

In practice, defects can occur at almost every stage of production:

  • Raw materials: aluminum and copper foils must be defect-free before coating begins.

  • Coating: slurry may contain air bubbles or foreign particles.

  • Drying: as solvents evaporate, hidden particles can surface.

  • Calendaring: compressing the electrodes can expose voids or create delamination.

Slitting and notching are cutting steps that can cause edge defects or release metal and coating particles. This makes inspection at every stage essential. For high-volume manufacturers, even a small drop in rejects can mean big savings.

One customer shared that cutting defects by just 0.1 percent saved them six figures a day. That’s a monetary indication of how much is at stake. Catching problems early does more than save money; it keeps hazardous cells off the market and shields the hard-earned reputations of your business.

Quality Isn’t Enough: Why Traceability Matters

Quality is no longer just about yield. Increasingly, it is about accountability.

Beginning February 2027, new EU rules will require every industrial and EV battery sold in Europe to carry a digital “battery passport,” a comprehensive record of its materials, production, and lifecycle. Manufacturers will need to log the provenance of raw materials, the carbon footprint of each production batch, performance data, and even levels of recycled content.

Traceability systems are no longer optional. Every roll of electrode and every cell must be tagged and tracked. Surface inspection systems now feed terabytes of data into Manufacturing Execution Systems (MES), which link each detected defect to a cell ID. If a battery pack fails in the field, engineers can trace it back to the exact roll of foil, coating line, or shift that produced it.

Figure 2. Production process for lithium-ion battery cells. Illustration of the main manufacturing stages from input materials to final output, with average value-added share per process step. (Image: AMETEK)

Investors and automakers are demanding this transparency even before the rules take effect. Shareholders expect supply chains free of human-rights risks, and regulators want proof of carbon reductions. Non-compliance could mean fines of up to €10 million ($11.6 million) or 2 percent of global turnover. The reality is simple: reducing scrap improves both profitability and sustainability. It also produces fewer wasted materials, less wasted energy, and lower emissions.

Figure 3. Battery software operating models. Examples of surface inspection approaches, including standard inspection, lane-based, gap-based, and sheeting inspection, showing how software adapts to different production formats. (Image: AMETEK)

Learning from Other Industries

Batteries may be a young sector, but other industries have walked this path before.

The paper industry refined coating and calendaring decades ago, developing inspection systems to catch tears or spots that could ruin entire print runs. The steel industry was forced by automakers to achieve near-zero defect sheet metal, leading to today’s sophisticated surface-vision systems. Each of these sectors shows the same lesson: when the cost of failure is high, investment in inspection and traceability pays back many times over.

For batteries, the stakes climb even higher. A single faulty electrode is not just wasted material; it could spark a safety crisis or trigger a billion-dollar recall.

Battery Inspection: A Moving Target for Quality Assurance

Batteries are especially challenging because the defect landscape is constantly shifting. As the industry moves from wet to dry coating, many of today’s defects may disappear, only to be replaced by new ones. As solid-state chemistries mature, inspection techniques will need to adapt again. Even 3D-printed batteries present novel challenges, with printed structures introducing their own defect types instead of moving webs of film.

That’s why I describe battery quality assurance as a moving target. Success will depend on flexible inspection systems, continuous learning, and a mindset that quality is not a box to tick, but a process of constant improvement.

The Hidden Key

Ultimately, the success of the battery industry will not be determined solely by breakthroughs in chemistry or capacity. It will be judged by its ability to manufacture at scale, safely, sustainably, and affordably. And that only hinges on quality assurance. By catching defects early, reducing scrap, and building robust traceability into every cell, we can unlock enormous value - financial, environmental, and social.

Each tiny gain in yield is a victory worth celebrating. Every defect intercepted before leaving the factory is a triumph for both profit and safety.

The real key to battery manufacturing success? Quality, plain and simple.

By Volker Koelmel, Global Manager of Plastic, Nonwovens and Paper, and Jacqueline Peintinger, Product Marketing Manager at AMETEK Surface Vision. For more information, visit here  .



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Battery & Electrification Technology Magazine

This article first appeared in the June, 2026 issue of Battery & Electrification Technology Magazine (Vol. 50 No. 6).

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