China's biggest battery makers are racing ahead with sodium-ion batteries, a technology long seen as a cheaper alternative to lithium-ion cells. Companies such as CATL plan to commercialize sodium-ion batteries for electric vehicles (EVs) and battery energy storage systems (BESS) this year, marking the first meaningful push to bring the technology into the mainstream. According to reports from Mint, Changan's Nevo A06, unveiled in February, is among the first vehicles slated to use a sodium-ion battery. CATL has also introduced a sodium-ion battery energy storage system, expanding the technology beyond its traditional dominance by lithium-ion batteries.
The biggest attraction for sodium-ion batteries is their cost advantage over lithium-ion technology. Sodium is estimated to be at least 500 times more abundant than lithium, making it significantly cheaper as a raw material. As reported by Mint, economies of scale could make sodium-ion batteries 20-30% cheaper to produce, according to EY's Praveen Pothumahanty. Despite lower energy density requiring larger batteries, the technology offers superior safety, temperature tolerance and scalability, making it suitable for battery energy storage systems.
India, too, has been trying to develop sodium-ion batteries, with companies including Reliance Industries backing the technology. According to reports from Mint, Reliance Industries strengthened its ambitions by acquiring UK-based battery startup Faradion for £100 million, aiming to commercialize the technology. However, commercial-scale production has yet to materialize despite years of investment and research. Companies including INDI Energy, KPIT Technologies and GODI Energy have outlined plans to develop sodium-ion batteries, but commercial progress remains limited.
The ₹18,100-crore Production Linked Incentive (PLI) scheme for advanced chemistry cells was designed to be chemistry-agnostic, allowing sodium-ion battery makers to qualify for incentives alongside lithium-ion manufacturers. However, as reported by Mint, most approved manufacturing capacity has gone to lithium-ion projects. Analysts expect sodium-ion batteries to carve out a meaningful niche rather than replace lithium-ion technology, with industry estimates suggesting they could account for around 10% of global energy storage additions by 2030. EY's Pothumahanty noted that India still has an opportunity to build a domestic sodium-ion ecosystem if local cell manufacturers can turn current research efforts into commercially viable products quickly.
