Article Summary

Discover the possibilities of sodium-ion battery technology as a viable alternative to lithium-ion. With rising concerns over supply chain stability and environmental impact, automotive OEMs and battery manufacturers are exploring sodium-ion solutions that may deliver comparable or superior performance.

Lithium-ion batteries have been the cornerstone of the electric vehicle (EV) revolution, thanks to their high energy density and long cycle life. However, the increasing demand for battery materials such as lithium, cobalt, and nickel has led to concerns over supply chain stability and environmental impact.

These concerns are forcing automotive OEMs and battery makers to search for alternative technologies—like sodium-ion batteries—that can offer similar or better performance.  

Can sodium-ion batteries compete in a market dominated by lithium?

Over the past two to three years, the buzz around sodium-ion batteries has become louder, with some companies claiming a succession of new breakthroughs. While these developments are promising, there are still significant hurdles to broader sodium-ion adoption.  

Sodium has a big advantage over lithium when it comes to availability, but it cannot yet match lithium’s performance parameters. Additionally, lithium carbonate prices have crashed by more than 70% over the past several years, negatively impacting the business case for sodium-ion batteries.  

US-based sodium-ion battery tech startup Bedrock Materials recently announced that it is winding down its operations, due in part to these cost competition challenges. The Stanford University spin-out was advancing research on sodium-ion battery tech for EVs, anticipating a continued lithium shortage that would make sodium-ion batteries a viable alternative.

Spencer Gore, co-founder and CEO at Bedrock Materials, said in a statement: “Our modeling pointed to a clear outcome: in a world where lithium remains abundant, today’s sodium-ion batteries can’t compete on cost — even at commercial scale. Independent researchers at Stanford reached the same conclusion, noting that for sodium-ion to succeed, it would need either a breakthrough in energy density or to carve out niche applications based on unique performance traits”.

Innovations driving sodium-ion battery development

Not everyone is pulling the plug on sodium-ion battery technology though. At its first ever ‘Super Tech Day’ in April 2025, mainland China-based Contemporary Amperex Technology Co., Limited (CATL) unveiled its production-ready Naxtra range of low- and high-voltage sodium-ion batteries for EVs

According to the company, the batteries, which will enter mass production in December 2025, are capable of operating across the full temperature range from -40°C to +70°C. The batteries have energy density of 175Wh/kg, which is comparable to lithium iron phosphate (LFP) batteries, and can deliver a driving range of 500 km on a single charge.  

To enhance the performance of its sodium-ion batteries, CATL worked on five key fronts:  

  • Non-expansion anode technology, to achieve a near-zero-dimensional change during the charge-discharge cycles.  
  • A high-toughness solid electrolyte interphase (SEI) technology, to ensure improved durability while addressing the SEI repair and acidic corrosion during charge-discharge cycles. This technology contributed to a longer battery lifespan.
  • A high-safety electrolyte for thermal stability, which forms a passive insulation layer on the internal surface of the battery. This layer contains high ceramics and provides stability and enhanced safety and performance.
  •  A ‘frost-resistant composite electrolyte technology,’ developed in-house, which prevents the formation of ice in extremely cold temperatures and enables sodium ions to move smoothly inside the battery cell. 
  • A multi-element cathode with faster ion extraction technology. This is achieved by adjusting the electrode chemistry of inactive materials, thereby reducing the resistance from the way of ion movements. According to the company, this helped in achieving improved performance in significantly low temperatures.  
Table with a brief overview of global developments on sodium-ion batteries part 1
Table with a brief overview of global developments on sodium-ion batteries part 2

The cost challenge: Competing with lithium-ion batteries

Due to the decline in lithium prices, sodium-ion batteries have experienced a significant reduction in their primary value proposition compared to lithium-based batteries. Currently, the prices of sodium-ion batteries in China can be as much as twice that of LFP batteries, particularly for the mixed metal oxide cathode materials that provide the acceptable energy density levels needed in the automotive sector. 

Consequently, sodium-ion cell suppliers are exploring niche applications to increase production volumes, which is essential for achieving economies of scale and driving price reductions.

According to S&P Global Mobility battery expert Ali Adim, there is an opportunity for sodium-ion batteries to see wider adoption in the low-voltage battery segment, thanks to their excellent performance in freezing temperatures.  

“Starter batteries present a compelling opportunity for sodium-ion adoption, thanks to their cold cranking capability. Interestingly, CATL promotes a lower total cost of ownership for its low-voltage sodium-ion batteries compared to traditional lead-acid batteries, due to a longer lifespan. In the coming years, we anticipate that the use of low-voltage sodium-ion batteries for starter and auxiliary functions will expand into the light-duty vehicle sector, particularly as legislation in regions like Europe moves to ban or restrict lead,” he said.

Unlock market opportunities with battery forecasting

As the battery landscape evolves, sodium-ion technology presents unique opportunities. To stay ahead, leverage our Battery Forecasting solution for critical insights into the automotive battery market.

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This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.


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