Key Milestone in the “Year of Sodium Batteries”: Industrialization on the Rise!

As we enter 2025, sodium batteries are once again capturing significant attention. Experts believe that this year could accelerate the sodium battery industry’s breakthrough, marking the true beginning of the “Year of Sodium Batteries.” Recently, a series of reports titled “Sodium Battery Industry Observation” aired on CCTV, highlighting the rapid implementation of sodium-ion battery pilot projects in the energy storage sector. China is continuing to intensify its research efforts on sodium battery storage technologies, resulting in the completion of several pioneering engineering projects.
For instance, in Nanning, Guangxi, China’s first 10MWh sodium-ion battery energy storage station has been operating safely and steadily for ten months. In addition to providing basic load regulation for the grid, sodium batteries are seeking new technological breakthroughs in emerging power systems, such as grid-type sodium-ion battery storage systems and emergency backup power sources.

<h2>Development of Sodium Battery Projects</h2>
Currently, lithium batteries dominate the energy storage market, capturing over 95% of the market share. However, sodium batteries share similar working principles and manufacturing processes with lithium batteries. Although sodium batteries are not as energy-dense as lithium batteries, they hold significant promise in large-scale storage applications where energy density requirements are less stringent, owing to their advantages in cost, safety, low-temperature performance, and abundant raw materials.
Cost advantages have been a major reason for the enthusiasm surrounding sodium batteries. Despite lithium carbonate prices gradually falling from their peaks since 2023 and rapid advancements in lithium battery technology, the cost advantage of sodium batteries remains significant. Numerous sodium battery projects continue to emerge, demonstrating strong interest from battery manufacturers in this field.
Recently, Zhongna Energy's headquarters project in Meishan commenced construction, with a total investment of 2 billion yuan. The project aims to produce 30,000 tons of sodium iron sulfate cathode materials annually, along with 2.5GWh of sodium iron sulfate battery cells and a 5GWh sodium iron sulfate battery pack production line. In December of last year, Zhongna Energy successfully completed nearly 100 million yuan in Series A financing, with Series A2 financing also nearing completion, marking the beginning of a new phase in sodium battery industrialization.
Industry insiders indicate that with the support of capital, product research and development, as well as production capacity for sodium battery enterprises, are likely to accelerate further. As technology research deepens and the industry chain improves, sodium batteries are expected to achieve greater breakthroughs in technological innovation and cost control, fostering a new paradigm of complementary development alongside lithium batteries.

<h2>Successful Demonstration Projects and Growing Market Potential</h2>
Several successful demonstration projects for sodium batteries have been implemented in the energy storage application field. Data shows that in 2024, the scale of independently procured sodium batteries in the energy storage sector is expected to reach 0.45GWh, significantly surpassing historical figures. In previous years, mixed energy storage technology dominated, but there has been a noticeable increase in projects independently procuring sodium batteries since last year.
Notably, sodium battery bidding projects led by state-owned enterprises such as Datang Group, China Huadian, State Power Investment Corporation, Southern Power Grid, and China Energy Investment Corporation account for approximately 74%, with energy storage demonstration projects making up about one-fifth. This indicates a positive national outlook on the development of sodium batteries in new energy storage applications.
For example, in June of last year, China's first 100-megawatt sodium-ion energy storage project, the Datang Hubei 200MWh sodium-ion new energy storage station, initiated operations with a capacity of 50MW/100MWh. The station comprises 42 battery cabins and 21 integrated boost and conversion units, utilizing 185Ah high-capacity sodium-ion cells. This project serves as a model for promoting the large-scale and commercial application of sodium energy storage systems. In November, Southern Power Grid's first distributed sodium-ion battery energy storage demonstration project was completed and put into operation in Binjiang County, Nanning, Guangxi, expanding the application scenarios for sodium battery storage in distribution networks.

<h2>Competitive Landscape Among Battery Manufacturers</h2>
As we move into 2025, leading battery manufacturers such as CATL, BYD, and Zhongke Haina are unveiling new developments in sodium batteries, indicating a competitive rush among battery companies to secure strategic positions in the sodium battery sector and expedite industrialization.
Recently, Zhengli New Energy listed on the Hong Kong Stock Exchange. According to their prospectus, the IPO globally issued approximately 121.5 million shares at a price of 8.27 Hong Kong dollars per share, expecting to raise around 927.5 million Hong Kong dollars. About 2.5% or 23.2 million Hong Kong dollars (approximately 21.4 million yuan) will be allocated for the research and commercialization of high-rate, long-life sodium-ion power batteries. In addition to Zhengli New Energy, other battery manufacturers such as CATL, Shuangdeng Co., and Haichen Energy Storage are also making progress in sodium battery developments as indicated in their IPO prospectuses.
CATL disclosed during an earnings call that it is accelerating the development of its second-generation sodium-ion batteries, with performance indicators approaching those of lithium iron phosphate batteries. Recently, CATL officially launched its automotive-grade sodium-ion battery, branded as "Sodium New," along with two products: a sodium-ion battery for passenger vehicles and a sodium-ion 24V heavy-duty truck integrated starting and standby battery, achieving an energy density of 175Wh/kg for the passenger vehicle power cell. According to the plan, the sodium-ion 24V heavy-duty truck battery is expected to enter mass production in June this year, in collaboration with FAW Jiefang, while the sodium-ion power battery is slated for mass production and delivery by December 2025, debuting in a chocolate battery swap model.
In its annual report, BYD revealed that its 200Ah high-capacity sodium battery has surpassed lithium iron phosphate in terms of safety and low-temperature performance at -30°C. Zhongke Haina's first-generation sodium-ion battery achieved an energy density of 145Wh/kg, and its newly launched second-generation sodium battery has exceeded 165Wh/kg. Haichen Energy Storage released its first sodium-ion battery, the ∞Cell N162Ah, in December of last year. This sodium battery employs a polyanion technology route and optimizes battery materials, electrode formulations, and cell designs, offering significant advantages in cycling performance, wide temperature range, high-rate charge and discharge performance, and energy efficiency, better meeting the comprehensive energy storage demands of modern applications.
Despite the advancements, industry insiders express that sodium batteries have not yet achieved large-scale industrial applications due to the absence of truly mass-market application scenarios. They believe that "driving big industries requires big scenarios," and that energy storage is a major application scene capable of driving the large-scale sodium battery industry.

<h2>Future Outlook for Sodium Batteries</h2>
Market outlook data indicates that there are 14 new or under-construction sodium-ion battery production and supporting industry projects planned for 2024, with a potential production capacity exceeding 110GWh upon completion. Additionally, industry forecasts suggest that sodium-ion battery shipments in China could surpass 4.5GWh in 2025, with expectations of exceeding 30GWh by 2030.
Industry experts widely believe that with ongoing support from policies, technological advancements, and industry collaboration, sodium batteries will continue to showcase their advantages, leading to enhanced cost-performance ratios and promising application prospects. This year is anticipated to mark a turning point in the accelerated industrial development of sodium batteries, with 2025 potentially being recognized as the true "Year of Sodium Batteries."
Additionally, the global battery industry event, CIBF2025, will soon take place in Shenzhen. During the event on May 15-16, the "Electric Aviation and Next Generation Battery Technology (CIBF2025 Shenzhen) Symposium," co-hosted by the China Chemical and Physical Power Industry Association and Battery China Network, will delve into the latest research and industrialization developments in electric aviation and next-generation battery technologies, along with the challenges and future trends in the field. Stay tuned for updates!