Saying it has solved core manufacturing challenges, CATL said it will start mass production of sodium-Ion batteries this year. This marks sodium-ion technology’s shift from a backup option to mainstream use. The company says sodium-ion batteries show strong potential for extreme weather and energy storage.
Volatile lithium carbonate prices have pushed the industry to hunt for alternatives and secure supply chains. Sodium offers clear cost advantages and better cold-weather performance. As CATL, BYD and other leading players now enter with full supply chains, technical hurdles are being cleared, and commercialization is picking up speed. A new “sodium-lithium parallel” energy landscape is taking shape.
This shift from backup option to mainstream strategy reflects CATL’s heavy investment and bullish market outlook. By 2025, the company had poured nearly $1.47 billion US dollars (10 billion yuan) into sodium-ion R&D. Chairman Zeng Yuqun expects the technology to capture 30–40% of the existing battery market. In CATL’s vision, sodium-ion batteries are no longer just a supplement to lithium, but a key force in reshaping the market.
Source: NBD Read The Article
PSR Analysis: CATL’s mass production of sodium-ion batteries is reshaping the global new energy industry across three dimensions: market structure, application scenarios, and supply chain systems.
In terms of market competition, its mass production cost of 0.45 yuan/Wh is 30%-40% lower than that of lithium iron phosphate (LFP) batteries, driving A0-class electric vehicle prices down to the $7,300 USD – $11,700 USD (50,000–80,000 yuan) range and reducing energy storage system costs by 15%-25%. The global sodium-ion battery market is projected to exceed 1,000 GWh by 2030, with CATL and BYD forming a duopoly, squeezing the survival space of small and medium-sized lithium battery firms—over 50% of which may be eliminated within the next 3–5 years.
On the application front, sodium-ion batteries’ exceptional performance in extreme cold and long cycle life is unlocking new market opportunities. With over 90% capacity retention at -40°C, their penetration in cold regions like northern China could rise from less than 5% today to over 30% by 2028. In energy storage, their 10,000+ cycle life and high safety make them ideal for AIDC and 5G base stations, where they will rapidly replace lead-acid batteries. The global sodium-based energy storage market is expected to reach 580 GWh by 2030, growing at a CAGR of over 80%. Additionally, sodium-ion batteries will drive the technological upgrade of China’s 3-million-unit low-speed EV market, with penetration expected to exceed 50% by 2028.
Despite its bright prospects, the sodium-ion battery industry still faces technical, market, and ecosystem challenges. While its current energy density of 175 Wh/kg approaches that of LFP batteries, it remains below that of ternary lithium batteries, and issues like fast-charging capability and cycle life degradation need resolution.
Consumer awareness of sodium battery safety is still low, and the lack of a residual value assessment system hinders adoption. Upstream material supply remains unstable, and standards and certification systems are still evolving. Nevertheless, supported by policy, technological advancement, and market demand, a complementary coexistence between sodium and lithium batteries is taking shape—sodium-ion batteries are expected to capture around 10% of the global battery market by 2035, becoming an indispensable part of the new energy industry. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
