Aiming for a Trillion Market: Continuous Breakthroughs in Sodium Battery Technology
On April 29, 2025, various advancements have recently been announced in sodium ion battery technology, emphasizing its potential in a market estimated to exceed one trillion. CATL announced its new sodium ion battery, “Sodium New,” which is set to begin mass production by the end of the year. Additionally, the China Academy of Sciences released a sodium ion battery solution for commercial vehicles, while BYD reported that its low-cost, long-life sodium ion battery has achieved a cell capacity of 200Ah and over 10,000 cycles. These developments showcase continuous improvements in energy density, cycle life, and safety.
Experts believe that the abundant global reserves of sodium can effectively mitigate the risks associated with lithium resource shortages. As breakthroughs in technology, cost control, and industrial collaboration continue, sodium batteries are expected to see widespread applications in energy storage and commercial vehicles. In the next 3 to 5 years, sodium batteries are projected to enter a phase of large-scale shipments, with an expected output exceeding 100 GWh and a market size reaching one trillion.
Breakthroughs in Sodium Battery Technology Accelerate Application Expansion
Recently, CATL officially launched its sodium ion battery named “Sodium New,” with its first product being the Sodium New 24V heavy truck starter battery, set to begin mass production in June. The battery boasts an energy density of 175Wh/kg and can operate effectively in temperatures ranging from -40°C to 70°C. In various tests, including puncture and drilling, the battery demonstrated a remarkable safety profile by not catching fire or exploding.
Sodium ion batteries utilize sodium salts as electrode materials, offering advantages over lithium-ion batteries such as abundant sodium resources, lower raw material costs, and wider operating temperature ranges. Hu Yongsheng, a researcher at the Institute of Physics under the Chinese Academy of Sciences and chairman of China Science Sodium, stated that sodium ion batteries can withstand temperatures up to 200°C before thermal runaway occurs, significantly reducing the risk of thermal incidents. Under conditions of puncture, short circuit, or overcharge, these batteries remain safe. They also retain over 90% of their capacity in -20°C environments, compared to less than 70% for lithium batteries at the same temperature.
On March 28, China Science Sodium unveiled its commercial vehicle solution in Fuyang, achieving an energy density of over 165Wh/kg, with a fast charging capability allowing for a 100% charge in 20 to 25 minutes, while maintaining a cycle life exceeding 8,000 charges. The intrinsic nature of commercial vehicles necessitates a more complex usage scenario, marking a significant dual breakthrough in both technology and industry for sodium batteries in China’s renewable energy sector.
Earlier, BYD’s 2024 annual report indicated that its low-cost, long-life sodium ion battery has achieved a cell capacity of 200Ah and over 10,000 cycles, surpassing lithium batteries in safety, power, and temperature performance.
These technological advancements are prompting an expansion of application scenarios for sodium ion batteries. The commercial vehicle solution from China Science Sodium has gained recognition from leading automotive manufacturers like CRRC, King Long, JAC, and FAW. Some companies have already entered joint research and development phases, while others are in technical integration discussions. On March 12, Lynk & Co announced that the Lynk 900 will be equipped with CATL’s advanced sodium ion battery, marking the beginning of sodium battery installations in vehicles. Yadea launched several sodium ion battery electric vehicles in January 2025, promoting the replacement of short-range models.
“Sodium batteries will initially see widespread use in energy storage and commercial vehicles. In the next 3 to 5 years, the sodium battery market is expected to reach a scale of one trillion,” Hu Yongsheng stated.
Accelerating Industrial Chain Development with Major Players Entering the Arena
Industry insiders believe that the rapid implementation of sodium ion batteries in energy storage and electric vehicles will drive the demand for increased production. “With policy support, sodium batteries will enter large-scale shipment phases within the next 3 to 5 years, with output expected to exceed 100 GWh,” said Tang Liang, deputy secretary-general of the Zhongguancun Energy Storage Industry Technology Alliance.
Recently, several publicly listed companies have disclosed their latest progress in accelerating the development of the sodium ion battery industrial chain. ST Yishite has launched its automotive start/stop sodium battery product, meeting the current passenger vehicle standards and fitting most mainstream models in the market.
High-tech company Tongxing Technology reported that its sodium battery core materials have been recognized by leading industry players, and its downstream partners are currently in the product compatibility testing and process optimization stages to enhance product performance.
New materials company Plit stated that its subsidiary, Jiangsu Haisida, has successfully gained recognition and application for its sodium ion battery products in global leading customers across various sectors, including energy storage, specialty vehicles, low-speed vehicles, automotive start-stop batteries, and backup power supplies.
Challenges Remain for Large-scale Applications; Technological Breakthroughs Are Key
As an emerging energy storage technology, sodium batteries possess advantages in resource abundance, safety, and low-temperature performance; however, the industrialization process still faces multiple challenges. Industry experts assert that for sodium batteries to achieve large-scale applications, simultaneous breakthroughs in technology, cost control, and industrial chain collaboration are essential.
“The rapid growth of the sodium battery industry requires a synergy of technology-driven, cost optimization, and policy guidance,” Hu Yongsheng emphasized. From a technological standpoint, the energy density of sodium ion batteries is progressing from 160Wh/kg towards 200Wh/kg (with laboratory tests already reaching 220Wh/kg), and it is expected to match the energy density of lithium iron phosphate batteries within 1 to 2 years. From a cost perspective, large-scale production will significantly reduce manufacturing costs, highlighting its theoretical cost advantages. Policy guidance, combined with relevant national support policies, will further accelerate the industrialization process of sodium ion batteries.
In terms of cost, sodium ion batteries are theoretically about 20% lower than lithium-ion batteries, which are heavily influenced by raw material prices. In contrast, sodium ion batteries are less affected by price fluctuations of raw materials. “The current mass production cost of sodium ion batteries is approximately 0.5 yuan/Wh, which could drop to 0.3 yuan/Wh after large-scale production, reducing costs by over 30%,” Hu Yongsheng stated.
According to Wang Qingsong, a researcher at the National Key Laboratory for Fire Safety at the University of Science and Technology of China, future breakthroughs in sodium batteries are likely to focus on high-entropy cathodes, new electrolytes, and solid-state sodium battery technologies. Progress in these areas could enable sodium batteries to partially replace lithium batteries in cold regions for energy storage and low-speed electric vehicles.
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