CATL goes all in on next generation sodium-ion EV batteries

CATL is making a decisive move toward next-generation electric vehicle batteries by accelerating the development of sodium-ion technology. The shift received strong backing when China’s Ministry of Industry and Information Technology announced plans to establish national standards for sodium-ion batteries, signalling official support for what could become a significant alternative to lithium-ion cells.

As the world’s largest EV battery supplier, CATL’s strategy has the potential to reshape global battery markets. The company announced plans to commercialize sodium-ion batteries during an online briefing fully, positioning the technology as a complementary solution to lithium-ion systems rather than a direct replacement.

Why Sodium-Ion Batteries Are Gaining Momentum

According to CATL chairman Zeng Yuqun, also known as Robin Zeng, sodium-ion batteries represent one of the most promising achievements emerging from the company’s research teams. He emphasized that sodium-ion cells can work alongside lithium-ion batteries, expanding the industry’s technology options rather than forcing a single solution.

CATL plans to establish a basic sodium-ion battery supply chain, laying the groundwork for industrial-scale adoption. While lithium-ion batteries will remain a core part of CATL’s portfolio, sodium-ion technology is expected to play a growing role, particularly in cost-sensitive EV segments.

Performance Advantages of Sodium-Ion Technology

Sodium-ion batteries offer several technical advantages that make them attractive for electric vehicles. CATL reports faster recharge capability and improved low-temperature performance compared with conventional lithium-ion cells. Cold-weather reliability has long been a challenge for electric vehicle batteries, making this a notable benefit.

Currently, sodium-ion batteries achieve an energy density of approximately 160 watt-hours per kilogram. CATL aims to raise this figure to 200 watt-hours per kilogram, narrowing the gap with lithium-ion technology and expanding real-world EV applications.

Cost and Supply Chain Benefits

One of the strongest arguments for sodium-ion batteries lies in raw material availability. Unlike lithium-ion batteries, sodium-ion cells do not rely on lithium or cobalt, metals with concentrated and geopolitically sensitive supply chains.

According to industry analysis from the International Energy Agency on battery supply chains, diversification away from scarce materials is critical for long-term EV scalability. Sodium can be extracted from seawater at low cost, and industry estimates suggest sodium-ion batteries could reduce raw-material costs by roughly 30 percent.

CATL has also stated that existing lithium-ion production equipment can be repurposed for sodium-ion manufacturing with minimal changes, accelerating commercialization.

Rising Lithium Prices Accelerate the Shift

As governments worldwide push for decarbonization, automakers are rapidly expanding EV production. This surge in demand has driven lithium carbonate prices sharply higher, particularly in China. Recent prices exceeded RMB 100,000 per ton, more than doubling year over year.

These price pressures strengthen the case for alternative battery chemistries. Sodium-ion batteries enable manufacturers to reduce exposure to volatile lithium markets while maintaining scalable production capacity.

CATL’s Dual-Track Battery Strategy

Formerly known as Contemporary Amperex Technology Co., Ltd., CATL is expected to continue aggressively expanding its lithium-ion battery production while gradually introducing sodium-ion batteries to market.

Sodium-ion cells are likely to be used first in affordable EVs and applications that do not require long driving ranges. This approach allows automakers to lower costs without sacrificing performance where ultra-high energy density is not critical.

CATL’s total battery production capacity is expected to increase significantly by 2025. A diversified battery portfolio that includes sodium-ion technology could help stabilize earnings and reduce supply chain risk.

Industry-Wide Push Toward Cobalt-Free and Safer Batteries

Beyond sodium-ion development, battery manufacturers across China and globally are racing to reduce dependence on cobalt and improve battery safety. SVOLT Energy Technology recently announced mass production of cobalt-free lithium-ion batteries, reflecting a broader industry trend.

Safety remains a primary concern. Lithium-ion batteries have historically shown vulnerability to shocks and thermal runaway, leading to high-profile recalls. General Motors faced recalls costing roughly USD 1 billion due to battery fire risks in Chevrolet Bolt vehicles, with supplier LG Chem absorbing part of the cost.

In response, automakers are exploring alternative battery designs. NIO has announced plans to release vehicles equipped with solid-state battery technology designed to improve impact resistance and safety.

Global Competition in Next-Generation Batteries

China is not alone in pursuing advanced battery solutions. Toyota Motor Corporation, Hyundai Motor Company, and Volkswagen are all investing heavily in next-generation battery partnerships.

According to analysts tracking global EV adoption, diversified battery technologies will be necessary to support the scale of electrification expected over the next decade.

What Sodium-Ion Batteries Mean for the Future of EVs

Sodium-ion batteries are unlikely to replace lithium-ion batteries entirely in the near term. Instead, they represent a strategic addition to the battery ecosystem. By offering lower costs, improved cold-weather performance, and reduced reliance on scarce materials, sodium-ion technology addresses some of the most pressing challenges facing EV adoption.

As battery demand continues to rise and supply chains face increasing strain, diversified battery chemistries will play a critical role in stabilizing the market. CATL’s commitment to sodium-ion development signals that the future of electric vehicles will likely rely on multiple battery technologies rather than a single dominant solution.

Final Thoughts

CATL’s push toward sodium-ion batteries highlights a broader transformation underway in battery technology. By expanding beyond lithium-ion chemistry, the industry is moving toward a more resilient, cost-effective, and sustainable energy storage future.

At LINIOTECH, developments such as sodium-ion batteries underscore the importance of monitoring emerging chemistries, responsible material sourcing, and scalable energy storage innovation. As electric mobility and grid-scale storage continue to evolve, LINIOTECH aligns with industry advancements that shape the next generation of battery systems.

FAQs

What are sodium-ion batteries and how do they work?

Sodium-ion batteries work on a similar principle to lithium-ion batteries, using sodium ions to move between the cathode and anode during charging and discharging. The key difference is the use of sodium instead of lithium, which enables more abundant, lower-cost raw materials while maintaining a comparable battery architecture.

Why is CATL investing heavily in sodium-ion batteries?

CATL is investing in sodium-ion batteries to reduce dependence on lithium and cobalt, lower material costs, and improve supply chain stability. Sodium-ion technology also offers advantages in cold-weather performance and faster charging, making it suitable for specific EV segments and energy storage applications.

Are sodium-ion batteries better than lithium-ion batteries?

Sodium-ion batteries are not universally better, but they are better suited for specific use cases. They currently offer lower energy density than lithium-ion batteries, which limits driving range. However, they offer lower costs, improved performance in cold conditions, and greater availability of raw materials, making them ideal for affordable EVs and short-range applications.

When will sodium-ion batteries be used in electric vehicles?

Sodium-ion batteries are expected to enter commercial EV applications gradually, starting with cost-sensitive and short-range vehicles. As energy density improves and manufacturing scales up, adoption is likely to increase. Industry leaders expect sodium-ion batteries to complement, not replace, lithium-ion batteries in the near future.

Do sodium-ion batteries improve battery safety?

Sodium-ion batteries have the potential to improve safety due to more stable material chemistry and reduced reliance on volatile metals. Safety depends on overall cell design and manufacturing quality, sodium-ion technology may help lower the risk of thermal runaway compared to some traditional lithium-ion configurations.