Chinese battery manufacturers are moving beyond lithium-ion technology with a focus on sodium-ion batteries, a shift driven by concerns over lithium supply constraints and the promise of more abundant raw materials. Sodium, which can be extracted from seawater and is far more plentiful in the Earth’s crust and oceans, offers advantages such as enhanced low-temperature stability and faster charging capabilities.
Contemporary Amperex Technology Co. Limited (CATL), the world’s largest battery producer, plans to begin mass production of its Naxtra sodium-ion battery this year. First introduced in April 2025, Naxtra will be incorporated into future electric vehicle models through a strategic collaboration with Li Auto, and CATL expects to power passenger cars with the technology in partnership with Chang’an Automobile by midyear.
CATL also intends to integrate sodium-ion cells into its Choco-Swap battery-swapping network, which boasted 512 stations across China as of August 2025. This network allows drivers to exchange depleted batteries for fully charged units in minutes.
Rival BYD has similarly invested in sodium-ion battery production, targeting an annual manufacturing capacity of 50 gigawatt-hours. Meanwhile, HiNa Battery Technology, a startup founded by researchers from the Chinese Academy of Sciences, is already producing sodium-ion cells for applications ranging from electric cars to large-scale energy storage.
Although sodium-ion batteries generally have lower energy density than their lithium-ion counterparts—meaning they are larger and heavier for the same energy capacity—they offer cost benefits in the long term as supply chains mature. Current Chinese market prices for sodium-ion cells stand at about 0.6 yuan per watt-hour, compared to roughly 0.4 yuan for lithium-ion cells, but companies aim to close this gap with technological improvements and scaled-up production.
The heavy-truck sector is seen as an early adopter, where energy density is less critical and rapid charge rates are valued.
Separately, sodium-ion batteries are gaining traction in utility-scale energy storage, supported by government directives to expand deployment from 2025 to 2027. Projects include a 50 MWh storage station in Guangxi province, which helps integrate renewable power while reducing coal consumption.
Industry analysts emphasize that sodium-ion batteries will complement rather than replace lithium-ion technology, creating hybrid systems that leverage the strengths of both chemistries as the market evolves.
Source: Reuters Sustainability
