China’s battery industry is rapidly accelerating the development and deployment of sodium-ion battery technology, driven by soaring lithium prices and a push for more cost-effective alternatives. This shift isn’t just a reaction to market forces; it represents a strategic move to diversify supply chains and address limitations in lithium availability.
The Rise of Sodium: A Chemical Shift with Geopolitical Implications
Sodium-ion batteries function similarly to lithium-ion but utilize sodium, which is 400 times more abundant in the Earth’s crust than lithium. Lithium reserves are heavily concentrated in South America and Australia, making supply chains vulnerable to geopolitical shifts and price volatility. Sodium, conversely, is widely distributed, reducing reliance on a few key regions. This abundance translates into potential long-term price stability for sodium-ion batteries.
Lithium’s Price Surge Fuels the Transition
Lithium carbonate prices have spiked dramatically, exceeding 170,000 yuan per ton (roughly $23,700 USD) in early 2026. This cost pressure is particularly acute for entry-level electric vehicles (EVs), which often rely on cheaper lithium iron phosphate (LFP) batteries. Sodium-ion technology offers a viable alternative to mitigate these rising material expenses.
Industry Leaders Invest Heavily in Sodium-Ion Production
Major Chinese battery manufacturers are already moving to scale up sodium-ion production:
- CATL: Launched a sodium-ion battery for commercial vehicles, with plans to integrate them into passenger cars like the Aion Y Plus by the second quarter of 2026.
- BYD: Commissioned a 30 GWh sodium-ion battery production line.
- EVE Energy: Initiated a $144 million sodium-ion project.
- Ronbay Technology: Repurposed some lithium battery production lines to sodium-ion materials.
Global sodium-ion shipments reached approximately 9 GWh in 2025, marking a 150% increase from the previous year, demonstrating rapid market traction.
Performance Advantages in Specific Use Cases
Sodium-ion batteries excel in cold-weather performance, retaining over 90% capacity at -20°C—compared to roughly 80% for standard lithium batteries. Cost estimates suggest sodium-ion materials could be 30–40% cheaper than lithium equivalents. However, scaling production efficiently is still a challenge.
The Current Limitations: Energy Density and Scale
Sodium-ion energy density (100–170 Wh/kg) currently lags behind mature LFP batteries (180–200 Wh/kg) and significantly trails ternary lithium batteries (250–300 Wh/kg). This limits their immediate use in high-range EVs. Supply-chain coordination and mass production are still under development.
The Future of Sodium-Ion: Complementary, Not Replacement
Analysts predict sodium-ion batteries will initially find adoption in specific niches:
- Entry-level EVs
- Cold-climate applications
- Stationary energy storage
The technology is expected to complement lithium-based batteries rather than replace them entirely. 2026 is poised to be a pivotal year for sodium-ion commercialization in China, as production accelerates and costs continue to fall.
The move towards sodium-ion is less about replacing lithium entirely and more about creating a more resilient, diversified, and cost-effective battery supply chain in the long run.
