Lithium-ion batteries have become the backbone of electric vehicles and energy storage. But a rival chemistry built around one of the world’s most abundant elements is now becoming increasingly viable.
Sodium-ion batteries are entering commercial production as major manufacturers bet they could make energy storage cheaper, more resilient and less dependent on lithium.
In February 2026, Chinese automaker CATL and automaker Changan unveiled what they described as the world’s first production passenger vehicle equipped with sodium-ion batteries, with sales planned for mid-year.
In April, CATL also signed a major deal to supply 60 gigawatt hours of sodium-ion batteries to energy storage company Beijing HyperStrong Technology over three years.
These developments suggest that sodium-ion technology is approaching a new milestone. But it nevertheless remains faced with a fundamental challenge. Lithium-ion batteries have a considerable head start in terms of energy density, cost and manufacturing scale.
Sodium is plentiful, but that doesn’t automatically produce better batteries
Both technologies work on the same basic principle. During charging and discharging, ions move between a positive electrode (cathode) and a negative electrode (anode), with an electrolyte allowing them to travel between the two.
The main difference is in the element that carries the load. Lithium-ion batteries use lithium, while sodium-ion batteries use sodium, which is widely available in seawater and common salts.
This abundance could reduce reliance on lithium mining and price fluctuations. Sodium-ion cells can also use aluminum current collectors on both electrodes, potentially reducing their reliance on copper. Some designs avoid lithium, cobalt and graphite altogether.
However, sodium-ion batteries are not automatically free of critical minerals. Some commercial cathode chemicals still use materials such as nickel and manganese, while their hard carbon anodes require specialized manufacturing. The supply chain for these components is also much less mature.
The International Energy Agency (IEA) notes that sodium-ion battery production remains heavily concentrated in China, despite the potential for more geographically diverse raw material supplies.
Lithium-ion still has the advantage of energy density
For electric vehicles, one of the most important metrics is energy density. It measures the amount of energy a battery can store relative to its weight or volume.
Here, lithium-ion remains in the lead. According to the IEA’s 2026 assessment, the latest sodium-ion cells can achieve around 175 watt-hours per kilogram (Wh/kg). For comparison, lithium iron phosphate (LFP) cells can achieve around 205 Wh/kg, while nickel-manganese-cobalt (NMC) batteries can achieve around 265 Wh/kg.
A less energy dense battery must be larger or heavier to store the same amount of energy. In a vehicle, this can mean reduced range or less space for passengers and cargo. The IEA estimates that an average SUV equipped with sodium-ion batteries could achieve up to 350 kilometers (217 miles) of range, compared to around 400 to 600 kilometers (249 to 373 miles) for lithium-ion vehicles in average weather conditions.
Sodium-ion batteries have an important advantage in colder environments. The newest cells can maintain approximately 90% of their rated capacity at temperatures as low as -40°C (-40°F), outperforming conventional lithium-ion chemistries, particularly LFP. This could make them useful in cold-weather vehicles and equipment.
Competition shifts to specific applications
Sodium-ion’s biggest near-term opportunity may not be replacing the battery in every electric car. Instead, it could find a place in smaller vehicles, two- and three-wheelers, urban delivery fleets and stationary energy storage, where weight and volume are sometimes less restrictive.
The network storage market is particularly interesting. Batteries used to store electricity from solar and wind installations do not need to fit inside a vehicle or maximize range. Cost, safety, durability and reliable performance may be more important than energy density.
CATL’s 60 GWh deal with HyperStrong reflects this opportunity, while its TENER sodium-ion storage system, unveiled in June 2026, demonstrates growing interest in commercial-scale stationary applications.
However, the economic aspects have not been resolved. Lithium-ion manufacturing has benefited from decades of investment and huge production volumes. In particular, LFP batteries have become very cost competitive, making it difficult for sodium-ion to win simply because sodium is cheaper and more abundant.
The IEA says global sodium-ion production in 2025 was less than 1% of lithium-ion production. Even the projects announced for 2030 represent only a fraction of the planned lithium-ion manufacturing capacity.
A second battery chemistry, not necessarily a replacement
The arrival of sodium-ion batteries is important, but it does not mean that lithium-ion is about to lose its dominant position. Lithium-based cells continue to improve, while sodium-ion manufacturers still need to increase production, refine their materials, and demonstrate consistent performance.
The most likely outcome is a battery industry with multiple chemicals serving different needs. Lithium-ion will remain attractive where range, weight and energy density are priorities. Sodium ion could become increasingly useful where cold weather performance, material availability and supply chain diversification are of greater value.
Perhaps sodium-ion’s biggest achievement right now is giving battery makers another option. And in an industry increasingly influenced by demand for electric vehicles and grid storage, having multiple viable chemistries could prove just as important as developing a better battery.
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