Sodium Battery Technology Achieves Breakthroughs Targeting a Trillion-Yuan Market

Aiming at a Trillion Market: Continuous Breakthroughs in Sodium-Ion Battery Technology

On April 29, 2025, it was reported that the sodium-ion battery technology is making significant advancements, targeting a market worth over a trillion. Notably, CATL has announced its new sodium-ion battery, Sodium New, which is expected to enter mass production by the end of this year. Meanwhile, China’s Academy of Sciences’ Huayou Sodium has unveiled a commercial vehicle solution using sodium-ion batteries, and BYD has developed a low-cost, long-lifespan sodium-ion battery with a cell capacity of 200Ah and over 10,000 charge cycles. Recently, sodium-ion batteries have achieved continuous breakthroughs in energy density, cycle life, and safety.

Industry experts believe that sodium resources are abundant globally, effectively mitigating the risks associated with lithium resource shortages. With ongoing advancements in technology, cost control, and industry collaboration, sodium batteries are expected to see widespread adoption in energy storage and commercial vehicles. Over the next 3 to 5 years, sodium batteries are projected to enter a phase of large-scale shipments, with expected deliveries exceeding 100GWh and a market size reaching a trillion.

Technological Advancements and Expanding Applications

Recently, CATL officially launched its sodium-ion battery named Sodium New, introducing its first product, a 24V heavy-duty battery designed for trucks, set to begin mass production in June of this year. This battery boasts an energy density of 175Wh/kg and can operate in a wide temperature range from -40°C to 70°C. In various tests, including puncture, drill penetration, and battery cutting, the battery demonstrated no fire or explosion risk.

The sodium-ion battery uses sodium salt as the electrode material, 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 Chinese Academy of Sciences and chairman of Huayou Sodium, stated that the thermal runaway initiation temperature for sodium-ion batteries can reach 200°C, with a lower self-heating rate, significantly reducing the risk of thermal runaway. Under abusive conditions such as puncture, short circuits, and overcharging, these batteries remain safe. Furthermore, their performance in low temperatures is exceptional, maintaining over 90% capacity at -20°C, while lithium batteries typically retain less than 70% capacity at that temperature.

On March 28, Huayou Sodium launched its commercial vehicle sodium-ion battery solution in Fuyang, achieving an energy density surpassing 165Wh/kg. It can be fully charged within 20 to 25 minutes, and even in fast-charging mode, the cycle life exceeds 8,000 times. The production tool nature of commercial vehicles leads to more complex usage scenarios, marking a dual breakthrough in technology and industry for sodium-ion batteries in China’s new energy sector.

Earlier, BYD’s 2024 annual report revealed that its low-cost, long-lifespan sodium-ion battery achieved a cell capacity of 200Ah and over 10,000 cycles, outperforming lithium batteries in terms of safety, power, and temperature performance.

Industry Chain Acceleration and Major Players Entering the Field

Industry insiders believe that the accelerated application of sodium-ion batteries in energy storage and electric vehicles will significantly increase production demands. With policy support, sodium batteries are expected to enter a phase of large-scale shipments over the next 3 to 5 years, with deliveries projected to exceed 100GWh. Tang Liang, deputy secretary-general of the Zhongguancun Energy Storage Industry Technology Alliance, noted that many listed companies have recently disclosed advancements in accelerating the sodium-ion battery industry chain.

ST Yishite has launched sodium batteries for automotive start/stop applications that meet current passenger vehicle standards and are compatible with most mainstream models. Xinxing Technology, a high-tech enterprise, stated that its core sodium battery materials have been recognized by leading industry players, and they are currently in the product adaptability testing and process optimization stages with downstream partners.

Pulite, a new materials company, reported that its subsidiary, Jiangsu Haida, has seen its sodium-ion battery products recognized and applied by global leading clients across various sectors, including energy storage, specialty vehicles, low-speed vehicles, automotive start-stop batteries, and backup power supplies.

Challenges for Large-Scale Application and the Importance of Technological Breakthroughs

As an emerging energy storage technology, sodium batteries possess advantages in resource abundance, safety, and low-temperature performance; however, their industrialization process faces multiple challenges. Experts believe that for sodium batteries to achieve large-scale application, simultaneous efforts in technological breakthroughs, cost control, and industry chain collaboration are essential.

Tang Liang remarked that sodium batteries are transitioning from demonstration and small-scale production to market application and large-scale production. He emphasized that while lithium-ion batteries have penetrated consumer electronics, power, and energy storage sectors, sodium-ion batteries need to explore differentiated application scenarios that leverage their unique characteristics.

Hu Yongsheng stated that the rapid growth of the sodium battery industry requires a synergy of technology-driven innovations, cost optimization, and policy guidance. In terms of technology, the energy density of sodium-ion batteries is advancing from 160Wh/kg towards 200Wh/kg (with laboratory tests achieving 220Wh/kg), and it is expected to match that of lithium iron phosphate batteries within 1 to 2 years. Regarding costs, large-scale production will significantly lower manufacturing costs, highlighting its theoretical cost advantage. With appropriate policy guidance, the industrialization of sodium-ion batteries will accelerate.

From a cost perspective, sodium-ion batteries are theoretically about 20% cheaper than lithium-ion batteries. While lithium-ion battery costs are heavily influenced by raw material prices, sodium-ion batteries are less affected by such fluctuations. Currently, the production cost of sodium-ion batteries is approximately 0.5 yuan/Wh, which could drop to 0.3 yuan/Wh with large-scale production, representing a cost reduction of over 30%.

According to Wang Qingsong, a researcher 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. If progress is made in these areas, sodium batteries may partially replace lithium batteries, especially in energy storage and low-speed electric vehicle applications in cold regions.