Salt Battery from CATL: Affordable Electric Vehicles at the Cost of Chemical Integrity?
In a significant development for the global battery market, Chinese battery giant CATL is set to launch mass production of sodium-ion batteries, also known as "salt batteries," for mainstream electric vehicles this year. This move comes as Korean battery maker LG Energy Solution is aiming for sodium-ion battery commercialization for uninterruptible power supplies and electric vehicles (EVs) by 2030.
The global sodium-ion battery market is projected to grow from $18.2 billion in 2025 to over $200 billion by 2032, reflecting industrial interest and anticipated improvements. Despite the energy density disadvantage, sodium-ion batteries are gaining attention due to potentially lower raw material costs and reduced dependency on scarce lithium and cobalt resources.
Sodium-ion batteries, unlike their lithium counterparts, currently offer energy densities of around 150-180 Wh/kg, significantly lower than NCM's approximately 500 Wh/kg. This energy density gap poses challenges for their use in mainstream long-range EVs, making them more suitable for cost-sensitive applications like budget EVs and stationary energy storage.
CATL's initial sodium-ion battery production focuses on low-voltage use cases such as start-stop systems in internal combustion engine vehicles, highlighting the technology's early stage and current limitations. However, the company's "Naxtra" battery for passenger vehicles is scheduled to launch by December, offering an energy density of 175 watt-hours per kilogram and a range of 500 kilometers on a single charge.
Sodium-ion batteries are expected to offer a cost advantage over CATL's current lithium iron phosphate offerings, and could become significantly cheaper than LFP batteries, potentially half the cost, once production is scaled up. This cost-effectiveness could make sodium-ion batteries attractive for budget-friendly EVs.
In contrast, LFP and especially NCM cells dominate in electric cars requiring longer driving ranges, due to their much higher energy density enabling lighter and more compact battery packs. Korean battery manufacturers like Samsung SDI and SK On are still exploring potential development paths for sodium-ion batteries.
While sodium-ion batteries face challenges in maintaining stable performance in high-voltage conditions and have a lower energy density, their potential cost advantages and resource-abundant nature could make them a viable alternative for certain EV applications. The manufacturing process for sodium-ion and lithium-ion cells is largely exchangeable, potentially lowering equipment costs for the new battery chemistry.
The electrode slurry used in salt batteries is usually softer and stickier than in lithium-metal cells, which could lead to manufacturing challenges. However, CATL's batteries are reported to perform exceptionally well in cold weather, surpassing existing lithium-ion technologies.
CATL's sodium-ion battery launch poses a challenge for Korean battery manufacturers who have yet to begin mass production of LFP cells for EVs. Sodium-ion batteries, due to their larger ionic radius and a relatively low average operating voltage of around 3.2 volts per cell, lag in energy density compared to lithium-ion batteries.
SK On CEO and President Lee Seok-hee emphasized the need to closely monitor technological trends in sodium-ion cells for the budget-friendly EV market. As the industry evolves, it will be interesting to see how sodium-ion batteries can shape the future of the EV market and address the challenges posed by limited resources and rising costs.
[1] https://www.catl.com/en/media-center/news/catl-to-launch-mass-production-of-sodium-ion-batteries-for-electric-vehicles-this-year [2] https://www.catl.com/en/media-center/news/catl-unveils-naxtra-sodium-ion-battery-for-passenger-vehicles [3] https://www.catl.com/en/media-center/news/catl-to-start-mass-production-of-24v-start-stop-integrated-sodium-ion-battery-for-heavy-duty-trucks [4] https://www.catl.com/en/media-center/news/catl-sodium-ion-battery-delivers-500km-range-and-stable-performance-in-cold-weather
- The collaboration between CATL and finance, as seen in the mass production of sodium-ion batteries for electric vehicles, highlights the potential for technology and financial sectors to merge in the quest for innovative solutions.
- In the quest for a more sustainable future, the growth of the science of sodium-ion batteries, such as the improvements by CATL and LG Energy Solution, may present an opportunity for technology to disrupt the dominance of finance-backed lithium-ion batteries in the electric vehicle market.
