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Interest in sodium-ion batteries is closely tied to lithium prices, as the search for cost-effective alternatives drives attention towards this technology. With lithium prices currently low, media focus on sodium-ion batteries has diminished. However, progress in the development of sodium-ion technologies has steadily continued. Recent developments in the sodium-ion battery sector show notable technological advancements and ongoing challenges in capacity expansion and project execution.
Technological progress and product launches
On 12th December 2024, Hithium unveiled its first sodium-ion battery designed for energy storage applications, the ?Cell N162Ah. This battery adopts a polyanion-based chemistry using sodium-iron pyrophosphate for the cathode and hard carbon for the anode. Under 25°C and 1P conditions, it achieves a 94.2% capacity retention after 4,000 charge-discharge cycles. The projected lifespan exceeds 20,000 cycles at 70% SOH. Hithium plans to begin GWh-scale production in Q4 2025.
This follows CATL announcing the completion of its second-generation sodium-ion battery in November 2024. This technology can discharge reliably at temperatures as low as -40°C and is scheduled for commercial launch in 2025.
Elsewhere, HiNa Battery has planned a range of sodium-ion batteries, including a 270Ah prismatic cell, an 80Ah blade cell, and a 12Ah cylindrical cell. These products target different applications with advantages such as fast charging, long cycle life, and high performance across varying temperatures. HiNa Battery also recently supplied the world’s first 100MWh sodium-ion energy storage project in June 2024, featuring 185Ah cells.
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Capacity expansion and project challenges
Production capacity for sodium-ion batteries is advancing, albeit unevenly. Most recently Guo Na Technology commenced operations at its 2GWh cell factory in Jizhou District, Shanxi Province, in December 2024.
However, not all projects are progressing smoothly, in February 2024 Kingshine cancelled its planned 6GWh sodium-ion battery factory in Jiangxi Province. Similarly, Veken Tech postponed its 2GWh project, initially scheduled for December 2024, now slated to commence operation in December 2025. These delays highlight the challenges surrounding demand uncertainty, funding, and production scalability.
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Cost competitiveness and market outlook
Cost remains a key factor in the commercial viability of sodium-ion batteries. HiNa Battery estimates that by 2025, the energy density and cell costs of its sodium-ion batteries will partially overlap with those of lithium iron phosphate (LFP) batteries and achieve full parity by 2026, making them competitive in certain markets.
Throughout 2024 sodium-ion batteries have made strides in both energy storage and EV applications, with multiple product launches and operational milestones. However, delays in some large-scale projects signal that the technology is still in the market validation phase. Companies will need to focus on reducing costs, enhancing performance, and ensuring stable market demand to achieve widespread commercial adoption.
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