In early 2020, sodium-ion battery systems were reported to begin commercial manufacturing, especially in China. International conferences focused on sodium-ion technology due to its perceived advantages: safety, affordability and abundant raw materials. These factors positioned sodium-ion as a potential replacement for lithium-ion batteries, particularly amid the sharp rise in lithium carbonate prices.
However, lithium carbonate prices dropped dramatically in 2023, undermining the economic rationale behind sodium-ion development. The battery market now faces uncertainty: choosing between low-energy-density lead-acid batteries, high- performance but safety- challenged lithium-ion systems, or sodium-ion batteries, which offer a middle ground but are not yet cost-competitive.
Lead-acid batteries still dominate in terms of installed capacity (kWh), while lithium-ion batteries hold the top spot in market turnover. Sodium-ion batteries may eventually replace lead-acid or lithium-ion systems, but challenges remain – particularly their lower specific energy and higher cost compared to LFP.
Recently, BEST magazine contacted CIAPS (China Industrial Association of Power Sources), the official organisation overseeing all battery systems in China, along with several sodium-ion battery manufacturers. Together, they provided insights into the current landscape – from active material suppliers to end-user applications – and future trends.
Technical routes: characteristics, advantages and challenges
- Polyanionic compounds: Includes phosphate, pyrophosphate, fluorophosphate and mixed phosphate systems. Key industry variants are sodium iron phosphate (NFPP), sodium iron sulfate (NFS), and sodium vanadium phosphate (NVP). These offer high cycle life (typically over 4,000 cycles, theoretically up to 10,000), high rate capability, safety, low cost, and excellent low- temperature performance. However, energy density remains lower than lithium iron phosphate (LFP), and economic viability is still limited.
- Layered oxides: Featuring O3 and P2 structures, these materials offer high specific capacity, compaction density, and energy density, with good rate performance and ease of technological conversion. Yet, they suffer from structural instability, sensitivity to moisture and oxygen, and require stringent production and storage conditions.
- Prussian Blue Analogues (PBA): CATL’s ‘Sodium New’ battery may adopt this route. PBAs offer high energy density, and issues like crystal water can be mitigated through acid washing, surface coating, and thermal treatment. However, concerns remain around crystal water and cyanide release at high temperatures.
Cathode material comparison
See Table 1.
Safety considerations
Sodium-ion batteries are generally safer than lithium-ion systems due to their active material properties. They are less prone to dendrite formation, can discharge down to 0V, and offer better thermal resistance due to lower energy density (Table 2).
According to the National Southern Grid’s safety classification, sodium-ion batteries rank between VRLA and lithium-ion systems (Table 3). In the table, VRFB is vanadium redox flow battery; FC is Fuel Cell; and VRLA is Valve- Regulated Lead-Acid battery.
Battery management systems (BMS)
Small sodium-ion batteries used in e-bikes or vehicles require basic BMS for charge control and safety. For BESS applications, comprehensive BMS with remote monitoring is essential to prevent thermal runaway and ensure system integrity.
Market outlook and key manufacturers
According to China’s Battery Industry White Paper, sodium-ion battery shipments are projected to exceed:
- 0.9GWh in 2023
- •1.76GWh in 2024
- 7GWh in 2025
Market applications include SLI, IDC, e-bikes and UPS, depending on the technical route and manufacturer expertise. For example, Layered Oxides O3 and Polyanionic NFS are both used in SLI applications– one for passenger cars, the other for trucks requiring overnight power.
There are several conferences focused on sodium-ion battery systems that showcase the latest R&D findings, application technologies, cost analyses, and process innovations. At the 2025 CIBF Conference & Exhibition in China, a dedicated seminar on sodium-ion batteries stood out as one of the most significant sessions on emerging battery technologies, drawing widespread attention for its updates on innovation and technological advancements.
Key manufacturers include:
- CATL: Released its Sodium New brand in April 2025; mass production begins Q4 2025.
- Huayang Corporation/ Zhongke Haina: Operates a 1GWh sodium-ion production line and a 10,000 ton material project.
- QingNa Technology: Built a 200MWh line in Anji; 2GWh line underway in Guangde.
- Chuanyi Technology: Targets A00 vehicles (the smallest class) and two/three-wheelers; launched sodium-ion PACK products in May 2025.
Other active players include Zoolnasm, Horizonal Na Energy, HighStar, HiNa Battery, Farasis Energy and Veken Technology.
Production capacity
National policy has supported ESS projects using sodium-ion batteries in Hubei and Guangxi. Prices dropped from RMB 1.5/kWh (US$0.21/kWh) to RMB 0.8/kWh (US$0.11kWh) in Q4 2024. If lithium carbonate prices rise to RMB 150,000 (US$29,875) per ton, sodium-ion could become more competitive than LFP (Table 4).
Thermal testing
Sodium-ion batteries have undergone high-temperature testing to evaluate their thermal resistance performance. At temperatures approaching 70°C, there is a risk of electrolyte evaporation, which may trigger the activation of the safety valve. This response is influenced by several factors, including the electrolyte formulation, cell design, and the specifications of the safety valve (Table 5).
Future trends
Polyanionic compounds are expected to dominate over the next decade, with layered oxides also receiving R&D attention. Prussian blue analogues may find niche applications. Innovations in active materials and processing aim to improve energy density, cycle life, and cost efficiency – especially for extreme temperature environments.
From the end-user perspective, sodium-ion batteries offer a third option beyond lead-acid and lithium-ion. With growing demand across BESS and SLI applications, sodium-ion technology is poised to evolve, reduce costs, and expand capacity – especially in China.
