The world’s largest battery manufacturer, Contemporary Amperex Technology Co., Limited (CATL), is accelerating its push into sodium-ion battery technology, while simultaneously confronting challenges within the battery-grade sodium supply chain. Although sodium is more abundant and less expensive than lithium, scaling advanced battery applications requires reliable sourcing, refining infrastructure, and high-purity compounds—areas that remain under development.
Next-Generation Sodium-Ion Batteries
CATL has announced plans to begin mass production of its next-generation sodium-ion batteries under the “Naxtra” brand by the end of 2025. The company states that the new design achieves an energy density of approximately 175 Wh/kg, a significant improvement over first-generation versions and approaching the performance of lithium iron phosphate (LFP) batteries.
Founder Robin Zeng has suggested that sodium-ion technology could eventually replace up to half of CATL’s LFP output, offering a lower-cost, safer, and more sustainable alternative.
Supply Chain Constraints
Supply considerations present substantial challenges. While sodium itself is highly abundant—often derived from common salt—not all sodium compounds are suitable for battery applications. Producing consistent, high-purity sodium materials at the scale required for electric vehicles and grid-scale energy storage demands new processing capabilities and rigorous quality control.
As a result, sodium-ion batteries are not simply a matter of substituting lithium with sodium; they require the near-complete construction of a new supply chain ecosystem.
Market Positioning and Use Cases
From a market perspective, the primary appeal of sodium-ion batteries lies in cost. Sodium is significantly cheaper than lithium on a per-kilogram basis, and the technology also offers safety advantages by reducing the risk of thermal runaway.
However, its lower energy density remains a limitation, potentially constraining its use in long-range passenger vehicles. Analysts expect sodium-ion batteries to be deployed first in cost-sensitive segments such as small electric vehicles, two-wheelers, and buses, as well as in stationary energy storage applications where size and weight are less critical.
Global Competition and Strategy
Chinese companies are leading the global race. CATL is the most prominent player, but it is not alone. Other battery developers are advancing sodium-ion designs, while automakers are evaluating the technology as an option for entry-level vehicle models.
Some experts argue that sodium-ion batteries are more likely to play a complementary role rather than fully replacing lithium-based chemistries—opening new markets focused on affordability, safety, and supply security rather than ultra-high performance.
International Implications
From an international perspective, CATL’s strategy carries implications beyond China. As the company expands in Europe with new gigafactory investments, global automakers seeking cost-competitive solutions are watching closely.
If CATL can secure a reliable sodium supply chain and deliver at scale, it could reshape the landscape for electric vehicles and stationary energy storage. Conversely, bottlenecks in sodium processing or large-scale procurement could delay commercialization and limit near-term impact.
Outlook
Ultimately, sodium-ion batteries exemplify both the promise and the complexity of energy innovation. Abundant raw materials do not automatically translate into scalable industrial solutions.
For CATL and its peers, success will depend not only on breakthroughs in chemistry, but also on the development of a complete industrial ecosystem—from refining capacity to integration with electric vehicle platforms. As the clean energy transition accelerates, sodium-ion batteries may emerge as an important complement to lithium-ion technologies, broadening pathways away from fossil fuel–based systems.