Sodium-ion batteries

The Chinese battery industry appears to be accelerating its development of sodium-ion batteries, which can replace lithium-ion batteries in certain applications owing to advantages such as lower manufacturing costs, more abundant raw material resources, better low-temperature performance, and enhanced safety.

A faster-than-expected rollout of sodium-ion batteries — particularly in the energy storage sector — is likely to challenge the dominance of lithium-ion batteries, especially if volatile lithium salt feedstock prices weaken the latter's cost advantage.

Sodium-ion batteries typically become more economically viable for mid-to-low-end applications when lithium carbonate prices stay above 150,000 yuan/t ($21,6005/t) over an extended period, potentially renewing market interest in the technology.

Lithium carbonate, a key feedstock for lithium-ion batteries, has maintained an upward price trend over the past few months, reaching Yn160,000-165,000/t ex-works on 27 January. The increase was supported by delayed restarts at major lithium mines, temporary production suspensions among domestic producers, and policy changes such as China's adjustment of export rebates for lithium-ion batteries, which spurred early ordering.

Another factor destabilising the Chinese lithium market is the country's limited domestic mineral resources and high reliance on imports. China imported 7.75mn t of lithium concentrate (spodumene) in 2025, with Argus-assessed prices for 6pc Li₂O-grade material surging nearly 150pc to $2,000–2,400/t cif China on 27 January.

In contrast, sodium is far more abundant and evenly distributed globally. Sodium resources are approximately 450 times more plentiful than lithium, according to industry estimates. In terms of low-temperature performance, sodium-ion batteries can retain over 90pc of their capacity at minus 40°C, making them suitable for use in northern China's cold climates and in outdoor mobile devices.

Raw material costs for sodium batteries are about 40pc lower than those for lithium iron phosphate (LFP) batteries, although they generally offer lower energy density.

Due to their lower energy density, sodium-ion batteries are currently primarily used in back-up power systems for communication base stations, low-speed electric vehicles and large-scale energy storage. But ongoing technical research is expected to narrow the energy density gap with LFP batteries in the coming few years.

Commercialisation of sodium-ion batteries has gained momentum. Industry estimates suggest that as the supply chain matures over the next three years, production costs could fall significantly. At an industry capacity of around 100GWh, sodium-ion batteries could be priced about 30pc lower than LFP batteries.

Argus Consulting expects sodium-ion technology to enter the mainstream and become the only viable competitor to lithium-ion batteries this decade.

Accelerating developments

China’s Zoolnasm, a producer of sodium-ion battery cathode active materials (CAMs), has started production at its 10,000t CAM plant in Meishan, Sichuan. This marks a step-up from pilot-scale output of several thousand tonnes to industrial-scale production, accelerating the industrialisation of sodium-ion batteries. The facility is the first globally to achieve 10,000t-scale production of sodium iron sulphate cathode materials. Once fully built out, the site is designed to reach a total CAM capacity of 30,000 t/yr, with battery pack capacity rising to 5GWh.

Major Chinese battery makers are also advancing toward large-scale deployment. CATL plans to mass-produce its Tianxing II high-density sodium-ion battery, with an energy density of 175Wh/kg, for use in light commercial vehicles. This is not too far off CATL's Shenxing Plus LFP battery that has an energy density of 205Wh/kg.

Huan Gao, a spokesperson for CATL, noted that although sodium-ion technology is still nascent, its development trajectory is expected to mirror or even outpace that of lithium-ion batteries. CATL aims to produce sodium-ion batteries competitive with LFP batteries in both cost and energy density within the next three years.

Other CAM producers are also scaling up. Ronbay Technology announced on 17 November that it plans to expand its sodium-ion battery CAM capacity to 100,000t in 2026 through mergers, renovations and new projects, with a longer-term goal of 1mn t by 2030.

On the energy storage front, a 100MW/200MWh sodium-ion energy storage power station demonstration project in Honghu city — China’s largest under-construction energy storage project — recently passed the completion acceptance inspection conducted by China Electric Power Construction Corporation.

Author name: Meng Li, Graduate Trainee Editorial, and Ohmin Zhao, Market Analyst Team Manager, Metals.