China’s Sinopec and South Korea’s LG Chem have announced a strategic collaboration to accelerate the development of sodium-ion battery technology. The partnership will focus on creating advanced cathode and anode materials, which are key components for these next-generation batteries. This move aims to fast-track the commercialization of sodium-ion technology for use in energy storage systems and low-speed electric vehicles, capitalizing on a market that is projected to experience explosive growth, particularly within China, which is already a global leader in the sector.
Under the terms of the joint development agreement, China Petroleum & Chemical Corporation (Sinopec) and LG Chem will pool their resources to innovate materials for sodium-ion batteries. Their collaborative efforts will specifically target the refinement of cathode and anode components, with an eye toward applications in both stationary energy storage and the burgeoning low-speed electric vehicle market. The partners intend to not only speed up the path to mass production but also to explore new business models for the technology in China and other international markets.
Sodium-ion technology has gained significant traction as a viable alternative to traditional lithium-ion batteries. Its primary appeal lies in the global abundance and lower extraction costs of sodium compared to lithium, positioning it as a potentially more sustainable and cost-effective solution. However, the technology still faces hurdles to widespread adoption, including stiff competition from the rapidly scaling and increasingly affordable lithium iron phosphate (LFP) battery chemistry.
China has firmly established itself as the global frontrunner in the sodium-ion sector. Domestic companies like CATL, BYD, and Huawei are pushing the boundaries of research and development, while deployment is already underway with projects reaching the 100 MW scale. According to projections cited by Sinopec, China’s domestic market for sodium-ion batteries is forecast to surge from 10 GWh in 2025 to 292 GWh by 2034, reflecting an average annual growth rate of approximately 45%. By the end of this decade, the nation is expected to command over 90% of the world’s total production capacity.
Recent investment figures reflect the dynamic nature of the market. The China Energy Storage Alliance reported that 48 new sodium-ion battery manufacturing projects were planned for 2024, totaling 254.7 GWh of annual capacity. While this represents a 32% decrease from the more than 375 GWh of capacity announced in 2023, data from the first three quarters of 2024 suggests a strong recovery. During this period, 37 new projects were recorded with a combined planned capacity of 179.5 GWh, already accounting for over 70% of the previous year’s total. Among these new initiatives are six large-scale projects, each with a planned capacity exceeding 10 GWh.