Generic Hero BannerGeneric Hero Banner
Latest market news

Germany to develop sodium-ion battery technology

  • : Battery materials
  • 24/10/02

A German consortium of 15 working groups led by battery supplier Varta has started development of industrial-scale sodium-ion battery technology, as Europe looks to compete with China on the next battery chemistry set to reach commercial production.

The consortium has officially started development on the Entise project, after gaining approval and €7.5mn ($8.31mn) of investment from Germany's education and research ministry in May.

The EU has funded several other sodium-ion initiatives, including the €925mn public-private BATT4EU project, which launched in 2021 to drive battery research and innovation. A undisclosed portion of BATT4EU funding has been dedicated to sodium-ion batteries.

And the European Commission has invested €8mn each in two projects — SIMBA and NAIMA — which are both made up of consortiums looking to bring sodium-ion battery technology closer to production.

Some companies are also making investments without public funding, with Swedish battery producers Northvolt and Altris and US firm Fluor leading the way on commitments — although sluggish international demand for electric vehicles (EVs) has disrupted progress. Weak demand for EVs and low prices for battery materials have weighed on battery makers' revenues, reducing the incentive for research and development into future battery chemistries, such as sodium-ion batteries.

Germany is set to account for 21pc of Europe's lithium-ion battery production capacity by 2030 — the largest share of any country in the region (see graph), ahead of Hungary at 16pc and France at 13pc, according to UK government-funded research group the Faraday Institution.

China leads the way

China is the region with the most lithium-ion battery production capacity at present, and is set to have 395GW of capacity, or 52pc of the global total, by 2030, according to energy watchdog the IEA. And some Chinese firms are also turning to sodium-ion batteries, with the world's largest EV maker BYD and technology firm Huaihai signing a contract late last year to build a 30 GWh/yr sodium-ion battery plant.

Sodium-ion batteries are expected to account for less than 1pc of global battery demand by 2030, according to the IEA (see chart). They are set to be used in a range of applications, from grid-scale storage and transport, to consumer electronics, industry, aerospace and defence. And sodium-ion batteries could potentially power products including toothbrushes, mobile phones and EVs.

Sodium-ion batteries are slightly bigger but potentially cheaper to produce than lithium-ion batteries. The anode is made from hard carbon, which can be manufactured from wood or biowaste, while the cathode can be made from Prussian white, which contains iron — a cheap and abundant metal.

European lithium-ion gigafactory capacity to 2030 GWh

European lithium-ion gigafactory capacity forecast, 2030 pc

Global EV battery production, as per stated policies TWh

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/05/20

China's CATL raises $4.6bn from Hong Kong IPO

China's CATL raises $4.6bn from Hong Kong IPO

Beijing, 20 May (Argus) — China's largest battery producer CATL has raised $4.6bn from the sale of 135.6mn of its shares on the main board of the Hong Kong Stock Exchange today. This is likely to be the world's largest initial public offering (IPO) in 2025. CATL's shares hit a high of HK$299.80 ($38.40) in the morning trading session, up by 14pc from its listing price of HK$263. CATL's Hong Kong IPO is expected to enhance its international brand influence and finance its expansions in the global battery market, according to industry participants. CATL is not only a battery component manufacturer and system solution provider, but also aims to be a pioneer of the global zero-carbon economy, said company chairman Zeng Yuqun at the listing ceremony. The world's total investments in vehicle electrification will hit $3 trillion by 2030, and more than $10 trillion will be invested in renewable energy by 2050, according to CATL. CATL's electric vehicle battery installations rose by 40pc on the year to 84.9 GWh in January-March, accounting for 38pc of the world's total installations, data from South Korean market intelligence firm SNE Research show. Its total battery capacity is projected to reach 700-1,000 GWh/yr in 2025, making it the world's first TWh-level battery manufacturer, according to market participants. The firm has been accelerating expansions outside China in recent years, with projects in Germany, Hungary, Spain, and Indonesia. The company is also facing geopolitical pressure because of the US' higher tariffs on Chinese battery imports and accusations by some US politicians of having supply chain connections to forced labour. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global battery demand rises close to 1TWh in 2024: IEA


25/05/15
25/05/15

Global battery demand rises close to 1TWh in 2024: IEA

Singapore, 15 May (Argus) — Global battery demand across electric vehicle (EV) and storage applications rose to almost 1TWh in 2024, according to energy watchdog the IEA, in its latest report. Demand was largely driven by EV sales growth, with EV battery demand growing by more than 25pc on the year to over 950GWh, mainly propelled by electric cars which accounted for over 85pc of EV battery demand, said the IEA in its EV Outlook 2025 . The almost 1TWh of demand is expected to more than triple to over 3TWh in 2030 under the IEA's stated policies scenario (Steps), which is based on countries' prevailing policies , with more demand from electric trucks despite electric cars still making up the majority of demand. EV battery demand rose by more than 30pc on the year in China, and currently takes up 59pc of total global EV battery demand. US demand has also grown, with the country taking up 13pc of the total share, on par with the EU. The IEA expects critical minerals supply surplus to persist over the next few years but cautioned that depressed prices could dissuade future investments and lead to supply shortages for lithium and nickel by 2030. "It will take about a decade before recycling has a significant impact on reducing primary mineral demand," said the IEA, citing feedstock limitations. Recent raw material prices for battery recyclers in China, the largest battery recycling market, remain higher than their battery recycling yields such as recycled lithium, nickel and cobalt, a Chinese battery recycler told Argus . Domestic battery recycling plants operating rates are "not high," the battery recycler said, with very thin activity in the domestic black mass market. Excessive battery capacity Global battery cell manufacturing capacity grew by almost 30pc in 2024 to 3.3TWh, more than triple the battery demand, according to the report. South Korean battery manufacturers accounted for over 400GWh of overseas battery manufacturing capacity in 2024, much higher than the 60GWh from Japanese manufacturers and 30GWh from Chinese manufacturers. South Korea's battery manufacturing is poised to further expand to more than 1TWh in 2030, almost double that of Chinese manufacturers, if all announced projects materialise. Global manufacturing capacity could grow to about 6.5TWh in 2030, about double the demand projected under IEA's Steps scenario, if all committed projects are realised. This would also entail China's share of global manufacturing capacity weakening from 85pc in 2024 to two-thirds by 2030. LFP battery share rises Lithium-iron-phosphate (LFP) batteries made up nearly half of the global EV battery market in 2024, said the IEA. Nearly all electric car LFP batteries sold in Europe or US were produced in China, which has a "de facto monopoly", said the IEA, with LFP becoming more attractive to European original equipment manufacturers looking to cut production costs. South Korean battery makers' market share in the EU fell to 60pc last year, down from 80pc in 2022, displaced by Chinese battery producers because the chemistry of LFP makes it more competitive, according to IEA. But top South Korean battery makers — LG Energy Solution , Samsung SDI , SK On — have all unveiled plans to mass produce EV LFP batteries over the coming years, looking to compete in the space. Japanese battery makers meanwhile saw their US market share fall to around 48pc, eroded by South Korea. South Korea took up 35pc of US market share last year, up from 20pc in 2022. Japanese domestic LFP development is also facing challenges, with Japanese carmaker Nissan recently cancelling a LFP plant in Kyushu as it goes through a restructure. LFP's penetration in the southeast Asia, Brazil and India markets is rising even quicker, with LFP battery electric car shares surpassing 50pc in each of the countries in 2024, according to the report. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IDB to finance R1.4bn for Sao Paulo's EV fleet


25/05/14
25/05/14

IDB to finance R1.4bn for Sao Paulo's EV fleet

Sao Paulo, 14 May (Argus) — The Interamerican Development Bank (IDB) will provide R1.4bn ($250mn) in financing for Brazil's Sao Paulo city to further expand its electric vehicle (EV) bus fleet. Sao Paulo has 527 electric buses and forecasts more 2,200 clean fuel buses by 2028, the government said. The city has a total fleet of 12,000 buses. In April, the Bank of China approved $100mn for Sao Paulo to buy more electric buses. But the city did not disclose how many buses it would buy. Sao Paulo also received R2.55bn from Brazil's development bank Bndes to buy 1,387 electric buses in December. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nissan cancels LFP battery plant, cuts 15pc of jobs


25/05/14
25/05/14

Nissan cancels LFP battery plant, cuts 15pc of jobs

London, 14 May (Argus) — Japanese carmaker Nissan has announced a sweeping restructuring plan that will see it cut global manufacturing capacity and reduce its workforce by 20,000 — or 15pc — including cancellation of a lithium iron phosphate (LFP) battery plant in Kyushu. The ‘Re:Nissan' strategy will consolidate vehicle plants from 17 to 10 by the 2027 fiscal year, while streamlining power-train sites and scaling back product complexity. The company did not say whether the closures and workforce cuts would target electric vehicle (EV), hybrid or internal combustion engine (ICE) production, but said it would pause advanced vehicle programmes beyond the 2026 fiscal year. The plant cancellations and reprioritisation of resources suggest a near-term shift away from EV expansion, which could erode demand for Argus -assessed metals for use in batteries, motors and other applications, alongside phosphate used in LFP chemistries. The firm said 3,000 engineers will be redeployed from future model work to support immediate cost cutting. Nissan is targeting ¥500bn ($3.2bn) in savings, split evenly between fixed and variable expenses. The company also said it will cut the number of platforms it operates to 7 from 13 by 2035 and reduce parts complexity by 70pc. It is not clear whether cuts to product development or headcount are linked directly to the LFP project cancellation. Carmakers across Japan and outside China have slowed battery investment in response to an increasingly uncertain EV demand environment in which purchasing incentives have been rolled back and competition from Chinese brands has intensified. Nissan will continue EV development through partnerships, including a new battery EV project for Mitsubishi in North America and collaboration with Honda on vehicle intelligence and electrification. By Chris Welch Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Quotas most likely option for DRC cobalt export restart


25/05/14
25/05/14

Quotas most likely option for DRC cobalt export restart

London, 14 May (Argus) — The resumption of cobalt exports from the Democratic Republic of Congo (DRC) under a quota system appears almost inevitable, market participants said ahead of the Cobalt Institute's annual conference in Singapore this week. With cobalt prices rising and stocks tightening globally, market participants increasingly expect that the DRC's blanket cobalt export ban — implemented in late February — will transition into a more sustainable quota system. The current freeze has pushed up global cobalt prices, but also blocked the flow of royalties to the Congolese treasury, creating what several traders described as a politically deliberate but ultimately transitional phase. "This is not [Congolese trading and mining firm] Gecamines — it's Kinshasa, it's the ministry of mines, and ultimately it's the presidency," one trader said, emphasising the centralised nature of the decision-making this time around. The government's key grievance is financial, multiple sources agreed. Cobalt royalty revenues have collapsed in recent years, according to several market participants. "They've lost billions," said one source with direct links to the ministry of mines. "This only makes sense if they replace the ban with something dynamic that keeps prices up and restarts the royalty flow." Prices up, revenues frozen Prices for cobalt hydroxide have nearly doubled since February, from $6/lb cif China to close to $12/lb — a sharper jump than during than any previous bans on DRC exports, including the ban on Chinese producer CMOC's Tenke Fungerume mine in 2022, now the largest cobalt mine in the world ( see graph ). But with exports halted, the Congolese government has reaped none of the upside. "They got the prices up, sure — but right now, there's nothing coming in. No exports mean no royalties," one trader noted, "A quota is the only real way forward." Market participants expect any such quota regime to be modelled loosely on Opec, with the DRC restricting supplies in a co-ordinated way to support pricing. "The officials running this are oil and gas guys," one source who has met with the DRC delegation said. "They want Opec on steroids. They've said that outright." Others draw comparisons with Indonesia, which already operates a quota system for its nickel ore mining permits and mixed-hydroxide-precipitate (MHP), which contains cobalt. "Indonesian quotas are real, but they're built into nickel flows. It's not exactly apples to apples," a trader said. "So for Indonesia to reduce cobalt output, they'd have to reduce nickel output, which they don't want to do." Stockpiles thinning, squeeze ahead Record-high first-quarter cobalt hydroxide production by CMOC and global trafing and mining firm Glencore — at 30,000t and 9,500t, respectively — suggests a healthier supply picture than is really the case. "Production hasn't stopped, but that's the point — if exports don't resume, stocks will just build up inside the DRC or dry up abroad," a trader said. Some estimates place global cobalt hydroxide inventories at 50,000–70,000t, but availability depends heavily on who holds what. "20,000t with a larger producer is not the same as 20,000t with a small recycler," one trader said. "Some are more inclined to sit on it and wait for prices to jump." Multiple participants expect a squeeze to emerge in the international market by August, as final pre-ban shipments are consumed and no new material enters the pipeline. "One producer told people there'd be no more shipments after May/June," one source with direct knowledge of trading flows said. "That means by July, China is chewing through remaining stocks — and by August, you're in crunch territory." Some traders are already stockpiling, with exporters deliberately delaying cargoes to benefit from rising prices, market participants said. Strong enforcement The DRC's export restrictions are being heavily enforced. A customs brigade with military backing was deployed recently to Kasumbalesa on the DRC-Zambia border — the country's only significant cobalt export route — to prevent smuggling and enforce the ban. "People writing about illegal smuggling clearly haven't been to Katanga. There's one road. One crossing. It's tightly controlled," a trader told Argus . The new level of sophistication, some argue, is why a transition to quotas feels inevitable. "Extending the ban helps no one in the long term — not the DRC, not Chinese refiners, not the market," an industry consultant said. "A quota system is the only option that gives them both price and payment." Market sentiment remained mixed ahead of next week's conference, with cobalt spot trading thin, ranging from $15-16/lb in-warehouse Rotterdam for Chinese material, $17-18/lb for western standard grade and $19-20/lb for alloy grade. Whether the announcement comes in Singapore or in the weeks that follow, few now doubt the final outcome. "This [export ban] isn't a one-off," one participant said. "It's the start of a new model. The days of Congo flooding the market and watching others profit are over." By Chris Welch Cobalt prices post-DRC supply shocks pc Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more