Sodium batteries: New energy storage options

Sodium batteries: New energy storage options

N. Chávez Cisneros[1] , OBELA[2]

The most expensive component of electric vehicles is the battery. In the quest to reduce costs, various forms of energy storage are currently undergoing transformation. This article will analyse what lithium and sodium batteries are, their role in the energy transition, the main companies investing in these technologies, and the challenges involved in extracting the minerals associated with their production. 

In 2026, the leading manufacturers of electric vehicle batteries are CATL and BYD from China, LG Energy Solution from South Korea and Panasonic from Japan. These same companies are investing in lithium mines in China, Chile and Bolivia. Not all have invested in alternatives to lithium (see Table 1). Since 2022, manufacturers of electric vehicle batteries have increased investment in research and development (R&D) for sodium batteries amid rising lithium prices. These are an alternative to lithium batteries, as they not only address production costs but also extend the battery’s lifespan, which is linked to the vehicle's lifespan. 

Although sodium is a more abundant mineral, its extraction and processing also have environmental impacts, just like lithium. Lithium is typically found in brine basins rich in salts at depths of 200 to 600 metres; its extraction requires a large volume of water, which becomes contaminated and unusable for agriculture, causing ecosystem damage that is difficult to repair. In contrast, the extraction of sodium requires electrolysis, which entails a significant energy consumption, generally sourced from electricity grids reliant on fossil fuels. Electrolysis generates by-products such as chlorine, sodium hypochlorite, sodium sulphate, sodium carbonate and sodium hydroxide, which, if not disposed of correctly, can be highly polluting. 

The three main manufacturers of sodium batteries are the Chinese companies HiNa, CATL, and BYD. HiNa supplies Huawei, which seeks to enter the electric vehicle market. CATL mainly supplies BMW, the Volkswagen Group, Tesla, and other Chinese manufacturers. BYD produces batteries for its own vehicles. Table 1 shows that to reduce production costs, Chinese companies have diversified the materials used for energy storage. China has rich sodium deposits, which would let it avoid dependence on South American lithium imports and their volatile prices.

Since 2022, HiNa has invested $780 million in sodium battery development; CATL and BYD have invested $1.4 billion each. Several companies outside China, like Natron Energy (USA), invested $370 million in 2022. High costs made production unviable, so operations ceased in 2025. Stellantis Venture announced in 2024 that it would fund Tiamat (France) to develop these batteries; the investment amount was not specified, and talks are ongoing. Sodium batteries are expected by 2030. Other companies—Northvolt (Sweden), Acculon Energy (USA), SIEMENS (Germany), and Reliance Industries (India)—have also made efforts but have not matched Chinese progress.

Sodium batteries could reduce the retail price of electric vehicles by between 30% and 40%. Furthermore, they are resistant to extreme weather conditions as their performance does not diminish, unlike lithium batteries. One disadvantage is that they are 20% heavier than lithium batteries, making them less suitable for light vehicles. Consequently, the sectors that stand to benefit most from the cost savings are manufacturers of mass passenger transport vehicles, goods vehicles and heavy goods vehicles. As shown in Figure 1, demand for batteries has risen steadily between 2020 and 2024. The average annual growth rate for the period was 51%, indicating that non-lithium batteries have significant potential for adoption.

In short, companies, particularly Chinese ones, have invested in developing alternative energy storage solutions, such as sodium batteries for electric vehicles. These batteries lower production costs but are heavier, making them suitable for commercial vehicles. The extraction of sodium salts raises environmental concerns, including water pollution. While sodium batteries expand battery options for the energy transition, further research is needed to address their ecological impact and establish proper safeguards.

[1] OBELA-IIEc Work Placements

[2] Dr. Oscar Ugarteche, Dr. José Carlos Díaz, Gabriela Ramírez, Jennifer Montoya, Carlos Madrid, Jesús Córdoba, N. Chávez Cisneros