Sodium‑ion batteries (SIBs) are increasingly framed as a sustainable alternative to lithium‑ion (Li‑ion) storage, particularly as global lithium demand is expected to exceed supply by 2028, according to a recent report from the International Renewable Energy Agency (IRENA). Despite this potential, achieving broad commercial success, especially beyond niche applications, remains challenging.
An international research team has published a comprehensive overview of key market trends within the SIB industry and ecosystem. Their analysis suggests that sodium‑ion technologies are already competitive with some lithium‑ion counterparts in select segments of the market.
“In applications where size and weight are less critical, such as stationary energy storage, sodium‑ion batteries are already beginning to emerge commercially,” lead author Nazmul Hossain told pv magazine. “Major manufacturers, such as CATL, have announced plans to begin mass production of next‑generation sodium‑ion cells by 2026, with intentions to expand their use into vehicles and storage systems.”
Nonetheless, industry analysts expect that reaching full cost and performance parity with mainstream lithium‑ion, particularly lithium iron phosphate (LFP), will take time as manufacturing scales and technologies mature. Hossain estimates this could occur in the mid‑2030s. “Sodium‑ion is currently competitive in niche markets and could become widely competitive in stationary storage within the next five to ten years as costs fall and supply chains mature,” he said.
According to Hossain, the ultimate competitiveness of SIB technology will hinge on balancing cost and performance. Sodium’s natural abundance and low cost make it an attractive candidate for large‑scale energy storage. Unlike lithium, which is subject to price volatility and resource constraints, sodium offers a pathway to more affordable battery systems, with potential cost reductions of 30–40% compared with conventional lithium‑ion cells.
However, this cost advantage comes with a trade‑off. “Sodium‑ion batteries generally have lower energy density, typically between 120 and 200 Wh/kg, which limits their suitability for applications where weight is a critical factor, such as electric vehicles,” Hossain said, noting that researchers are working to address these limitations, investigating new cathode and anode materials, optimized electrolyte formulations, and advanced cell designs to boost performance without negating the cost benefit.
“In summary, competitiveness will be determined by the combination of cost and performance enhancements,” Hossain added. “Achieving equivalent energy storage remains difficult despite inexpensive raw materials.”
Sodium‑ion batteries are especially well suited for stationary energy storage applications, including buffering solar and wind power or shaving peak grid loads. A notable benefit is safety; sodium‑ion chemistry is less prone to thermal runaway than many lithium‑ion systems, giving it a robust safety profile for large installations.
Hossain also acknowledged the technology’s limitations. Beyond lower energy density, some experts argue that, for long‑duration storage, alternative chemistries such as flow batteries may prove more cost‑effective. “Sodium‑ion is anticipated to perform very well in grid energy storage and other stationary applications; however, it may not be the most suitable option for all segments, particularly those with high energy density requirements,” he said.
The industrial ecosystem for sodium‑ion batteries is gaining momentum. In addition to CATL, companies including Sinopec and LG Chem are developing materials and supply chains to support broader deployment. Market interest and production capacity are both on the rise, with projections suggesting potential capacity in the hundreds of gigawatt‑hours by 2030 as demand grows across energy storage and select EV applications.
“The market interest and production capacity are both increasing, with the potential to reach hundreds of gigawatt‑hours of capacity by 2030,” Hossain emphasized. “This growth is being driven by expanding deployment in energy storage and certain electric vehicle applications.”
In the paper “Sodium ion batteries: A sustainable alternative to lithium-ion batteries with an overview of market trends, recycling, and battery chemistry,” published in Next Energy, Hossain and his colleagues identified the main barriers preventing SIB technology from achieving a wider adoption.
These include low energy density, cycle life and stability, dendrite suppression, low-temperature operation, industrial carbon industrialization and system level integration. “With continued interdisciplinary advancements in materials science, electrochemistry, and manufacturing processes, SIBs are poised to become not just an alternative but a complementary and strategically vital counterpart to LIBs,” the researchers stated.
The research group comprised academics from Bangladesh's Islamic University of Technology, the University of Waterloo in Canada, and Idaho State University, Pocatello, in the United States.
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