The most innovative companies in automotive for 2025

You know the dream: electric vehicles that can drive straight from New York to Chicago without needing to top off the battery. Robotaxis at your beck and call. Amphibious cars. The promise of next-generation travel hasn’t fully materialized yet, but legions of companies around the world are focused on bringing the vision to life.

This year’s list of the most innovative automotive companies recognizes both the upstarts and the incumbents advancing the next era in mobility. As the industry grapples with the larger questions of how to create viable solid-state batteries or commercialize robotaxi service, the companies listed here are focused on the incremental steps toward a fully autonomous future.

The result is EV technology that makes the erstwhile novelty car more powerful, more affordable, and more ubiquitous. China’s largest car company, BYD, became the world’s second-biggest EV maker in 2024 due to the rollout of its ultra-affordable models such as the $11,000 Seagull as it grows its global footprint.

Meanwhile, Southern California-based startup Rivian is disrupting the domestic EV industry with ultraefficient battery packs that can carry its pickup trucks and SUVs more than 400 miles on a full charge.

Some companies, like Northbrook, Illinois-based UL Solutions, are focused on making batteries safer and more reliable, while others focus on what to do with the batteries once they reach the end of their life cycle. Mercedes-Benz, which returns to the list for the second consecutive year, became the first car manufacturer to close the loop with an in-house battery recycling plant in Kuppenheim, Germany.

Of course, digital and connected features are becoming crucial to the user experience, and Nvidia, Qualcomm, and LG Electronics are racing to develop the computing power for faster processing and seamless service.

But for now, keep your eyes peeled on the road for Waymo, which tops our list this year, as it rolls out commercial robotaxi service around the U.S. and possibly in a city near you.

1. Waymo

For making robotaxis part of the streetscape

After 15 years, the original Google moonshot looks like it’s finally starting to reach escape velocity. Launched in 2009 as Google’s self-driving car unit, Waymo had its share of false starts before it began offering a limited version of its driverless ride-sharing service to customers in Phoenix in 2020. But in recent months, Waymo has emerged as the company ushering robotaxis out of the sci-fi realm and into reality. It’s paving the way for autonomous vehicles in five major U.S. cities, setting the bar for safety, transparency, and regulation for all other competitors, especially Tesla. And it’s making the general public comfortable with what now seems will be an inevitable part of the urban landscape. With wide-scale operations in San Francisco and Phoenix (and a limited rollout in Los Angeles), Waymo has been growing quickly—even with its emphasis on scaling responsibly. It is partnering with Uber and rolled out service in Austin in March, with plans to launch in Atlanta. Waymo also unveiled its Generation 6 automated driving system, an enhanced-technology suite designed handle tougher weather conditions. In October, the Waymo One taxi fleet reached 1 million autonomous miles driven. Waymo has made real what seemed unimaginable 15 years. It’s proven that Alphabet’s moonshot strategy can work.

Read more about Waymo, honored as No. 1 on Fast Company’s list of the World’s 50 Most Innovative Companies of 2025.

2. BYD

For making EVs that are ultra-affordable, ultrafast, and even amphibious

After almost 30 years as a battery supplier to mobile phone manufacturers, BYD has found explosive growth as an EV maker, catapulting over competitors to become a global juggernaut. The Warren Buffett-backed Chinese company shifted to building cars nearly two decades ago, applying its expertise in producing lithium iron phosphate (LFP) batteries to develop reliable, sub-$35,000 EVs. But the mid-2023 launch of BYD’s most affordable model—the four-figure Seagull compact car—ignited BYD’s exponential sales run. Boasting an all-electric range up to 252 miles, the Seagull became China’s top seller in August 2024 and solidified BYD’s status as the country’s largest automaker.

But BYD isn’t focused only on affordability. Shipments of its first supercar, the $238,000 Yangwang U9, began in February. Today, BYD is running neck and neck with Tesla for the top spot among global EV makers and it is the undisputed champion of the plug-in hybrid sector, with 40% of that market. Last year, BYD delivered more than 3.8 million passenger vehicles in 2024—surpassing its full-year target of 3.6 million. The year also saw the company’s rapid expansion across Asia and into Mexico, South America, Europe, and Australia. In November, BYD produced its 10 millionth battery-powered vehicle, becoming the first automaker to reach that milestone, and announced a new Blade EV battery to power its future long-range EVs. The next-generation Blade technology is expected to increase driving range as well as battery life cycle.

Whether BYD brings its cars to the U.S. is a question of geopolitics, but at least one top analyst says social media has helped spread the word among Gen Z and millennial shoppers, who are open to buying Chinese vehicles. “It’s only a matter of time before BYD is selling retail passenger vehicles in the U.S. market,” says Ed Kim, chief analyst at AutoPacific. “American consumers want them, and awareness of them is strong.”

Read more about BYD, honored as No. 5 on Fast Company’s list of the World’s 50 Most Innovative Companies of 2025.

3. UL Solutions

For developing cutting-edge automotive battery and energy storage testing

EV batteries can catch fire or explode in the event of a collision, mechanical failure, or weather catastrophe, making battery safety crucial as more electric vehicles hit the road.

Northbrook, Illinois-based safety science company UL Solutions has emerged as a key player in the space, conducting rigorous tests to determine how EV batteries handle a host of hazards, from thermal runaway to electric shock. The company launched an initial public offering in April 2024 at a roughly $7 billion valuation, and four months later, it opened a 90,000-square-foot advanced battery lab in Auburn Hills, Michigan. The company’s largest-ever laboratory investment puts performance and safety testing under one roof. The state-of-the-art lab is one of the most extensive electric and hybrid vehicle and industrial battery testing laboratories in the U.S., conducting electrical, mechanical, and environmental testing against standards and goals set by the International Electrotechnical Commission, United Nations, Society of Automotive Engineers, and others. The company grew revenue 7.2% to $2.9 billion in 2024, thanks to business from customers in more than 110 countries. It plans to construct a new Advanced Automotive and Battery Testing Center in South Korea to serve more customers across the Asia Pacific region and to add EV charger testing.

4. Nvidia

For powering the autonomous vehicle revolution

Nvidia dominates the market for the semiconductors that power AI platforms in automotive and a range of other industries. Its GPUs are well-suited to the demands of AI model training, making Nvidia’s technology crucial to the creation and widespread adoption of self-driving cars. Top automakers from around the world (including BYD, Mercedes-Benz, Rivian, and Volvo) utilize the latest technologies from Nvidia (Drive AGX, Drive Orin, Drive Thor) to power their autonomous driving systems, and in early January 2024, Nvidia secured its pole position in the race to build better autonomous driving systems when it announced at CES that the world’s largest car manufacturer, Toyota, would be deploying its technology to build its next-generation vehicles. All this has put Nvidia on a tear, with revenue and market cap surging. In November, Nvidia replaced Intel on the Dow Jones Industrial Average.

5. Mercedes-Benz

For advancing battery chemistry and developing a recycling economy

Mercedes-Benz is pulling ahead in the race to build a sophisticated battery economy. In October 2024, the automaker opened a state-of-the-art battery recycling factory in Kuppenheim, Germany. The factory—Europe’s first to house an integrated mechanical-hydrometallurgical process within a single plant—makes Mercedes the first automaker to close the ponderous battery recycling loop with its own in-house facility. Mercedes says the factory’s integrated process boasts a recovery rate of more than 96%, enabling a true circular economy of battery materials from old cars. The batteries come from test vehicles and production ramp-ups, as well as from returned vehicles from Mercedes-Benz. The plant will play a significant role in the battery life cycle, from shredding of battery modules to processing active battery materials to recovering scarce raw materials such as lithium, nickel, and cobalt. The downstream hydro-metallurgical process handles the “black mass,” the active materials that make up the electrodes of the battery cells. The factory, which began production in October 2024, is expected to generate enough material to produce more than 50,000 new battery modules annually. The knowledge gleaned from the project could help scale up production volumes in the medium- to long-term. Meanwhile, the automaker continues to roll out new EVs. In April, Mercedes-Benz launched an electric version of its rough-and-tumble G-Wagen truck, showing that electrification is possible for virtually any vehicle.

6. Rivian

For disrupting the EV industry with ultraefficient battery packs

It’s tough to start a car company. Just ask any of the fledgling EV companies that folded last year. The road has been rocky for Rivian, but the startup EV maker proved its staying power in June with the introduction of the second-generation R1S utility vehicle and R1T pickup truck. Together, the vehicles are challenging Tesla, General Motors, and other automakers thanks to their hearty, long-range power trains that are designed, engineered, and manufactured in-house. The second-generation battery packs offer up to 420 miles of range, while a new lithium iron phosphate-based battery pack can achieve an EPA-estimated 270 miles. Despite challenging sales, supply shortages, and layoffs, the company continues to plow ahead as a leader in the battery-electric sphere. In March, Rivian introduced a new midsize platform for smaller and more affordable vehicles, and followed that with the opening of its Rivian Adventure Network of DC fast chargers to all EVs. In October, the company announced that Volkswagen will invest $5.8 billion as part of a joint venture focused on developing vehicle software. In November, Rivian secured a $6.6 billion loan from the U.S. Department of Energy to revive its plans to build an EV factory in Stanton Springs, Georgia.

7. LG Vehicle Solution

For bringing entertainment into the car

LG is leading the lucrative race to bring entertainment into the car. In 2024, the South Korean juggernaut showed that it can adapt its expertise in consumer electronics for in-vehicle use, tailoring its user-friendly entertainment technology for automotive customers including Hyundai and Kia. In May, LG debuted a new infotainment platform with the launch of the Kia EV3 compact utility vehicle. The system brings LG Channels, an expansive network of entertainment, news and other content, into the car, eliminating complex app-based logins.

The following month, the company rolled out its AlphaWare suite of customizable software to help automakers integrate advanced software and connectivity features across their lineups as seamlessly as possible. The comprehensive system addresses five key areas powering the vehicle, such as PlayWare for infotainment and VisionWare for safety.

In November, LG presented its vision for the future of automotive interiors: a Digital Cockpit gamma featuring a 12.3-inch transparent OLED screen displaying real-time navigation, current speed, and points of interest, as well as a 14.2-inch retractable plastic OLED display embedded in the center console. A handy AI-based virtual assistant can detect driver fatigue, order a coffee from a shop nearby, and help you pay for the transaction through the screen’s built-in fingerprint-recognition sensor.

8. Qualcomm

For creating a scalable cloud-based platform for the automotive industry

Qualcomm is expanding beyond mobile phones, transferring its expertise in chip technology to the automotive industry as cars become a new computing space. The system-on-chip technology that Qualcomm has honed for mobile phones is becoming crucial for the automotive industry as it evolves toward centralized computing.

In October, the chipmaker announced a significant advance in automotive semiconductor technology with the launch of a scalable platform based on its fastest CPU. Qualcomm’s ultrafast Oryon CPU will power the latest version of its Snapdragon Digital Chassis, comprised of Snapdragon Cockpit Elite, which supports in-vehicle experiences like entertainment, and Snapdragon Ride Elite, which provides automated driving capabilities. The Snapdragon Digital Chassis can handle parallel AI workloads, such as processing data from multiple sensors and cameras to prevent a collision. It also allows different systems—such as infotainment and safety systems—to operate independently, which enables the car to process different types of data faster to make better-informed decisions. The cloud-connected platforms give customers like General Motors, Mercedes-Benz, Rivian, BMW, Ford, Honda, and Hyundai the flexibility to develop features such as customizable dashboards and over-the-air updates after the car has been purchased. In February, Qualcomm reported robust Q1 2025 growth, with automative bringing in $961 million, representing 61% year-over-year growth.

9. Michelin

For creating sustainable tires to support next-gen EVs

Tires, perhaps the last part of a car to modernize, are finally undergoing a paradigm shift. Since 1960, cars have grown larger and heavier—increasing 21% in height, 14% in width, and 3% in length—putting more pressure on the tire, the humble component that supports the entire car. Now EVs, with their heavy batteries, are increasing weight by roughly 20%, an industrywide shift that necessitates more durable and more sustainable tires to support the extra heft.

“Everything on electrification is pushing the market for bigger tires,” says Bruno de Feraudy, Michelin’s senior vice president of original equipment. Michelin’s Pilot Sport EV tires have been on the market since 2021, and at the 2024 Le Mans race in June, the company demonstrated a sustainable, track-oriented tire for the all-electric Porsche Cayman GT4 ePerformance race car. The motorsports tire at Le Mans is composed of 71% sustainable renewable and recycled raw materials, while the average tire uses 200 components that are difficult to recycle. These sustainable tires make greater use of rubber, recycled carbon black, oils such as sunflower oil and bio-sourced resins, silica from rice husks, and recycled steel.

10. Formula 1

For pioneering the hybrid technology powering passenger cars

Formula 1 has shot to the cultural forefront with the Netflix documentary Drive to Survive, now in its seventh season, but it’s also the world’s foremost test bed for the hybrid technology that trickles down into passenger cars. In June 2024, its governing body, the Fédération Internationale de l’Automobile (FIA), announced the racing series’s most ambitious plans for going carbon neutral. The regulations, which go into effect in 2026, call for each team to build a power unit that derives half its power from a V6 turbo engine and half from its battery and electric motor.

FIA’s ever-changing regulations breed innovation by requiring teams to continually reengineer their cars and push technology to the limit. Each car competing in Formula 1, arguably the world’s most technically advanced sport, features thousands of sensors taking more than 1 million data points per second to optimize performance as the driver hurls the car up to 225 miles per hour. The sport has more eyes on it than ever, gaining momentum stateside with the recent addition of Grand Prix in Miami and Las Vegas.

Explore the full 2025 list of Fast Company’s Most Innovative Companies, 609 organizations that are reshaping industries and culture. We’ve selected the companies making the biggest impact across 58 categories, including advertising, applied AI, biotech, retail, sustainability, and more.