Lithium Prices Soar, China's Battery Industry Begins to Switch to Sodium Ions

JAKARTA - China's battery industry is getting serious about developing sodium ion technology as lithium prices soar and the rapid expansion of production and investment from major players. This shift marks an increased interest in alternative battery chemistry, especially for applications that are sensitive to cost and cold weather conditions.

Chemically, sodium ion batteries bear a resemblance to lithium ion batteries, but use a much more abundant feedstock. Sodium is widely distributed in the earth's crust, with concentrations about 400 times higher than lithium, most of which reserves are concentrated in South America and Australia.

Launching from Autohome, Friday, January 30, this condition makes sodium ion batteries considered more resistant to resource volatility and global supply chain disruptions. The surge in lithium prices has also accelerated interest in this alternative.

In early 2026, the price of lithium carbonate broke through 150,000 yuan per ton and was above 170,000 yuan per ton, or equivalent to around 20,900-23,700 US dollars per ton. The increase in material costs adds production pressure, especially for low-end electric vehicles that have relied on lithium iron phosphate (LFP) batteries.

The world's largest battery manufacturer, CATL, recently launched a sodium ion battery for light commercial vehicles and indicated its application in passenger cars starting in the second quarter of 2026. The first model reported to adopt this technology is the Aion Y Plus.

The adoption of sodium ions is also expanding among other Chinese battery manufacturers. BYD has been operating a 30 GWh sodium ion battery production line. Meanwhile, EVE Energy launched a 1 billion yuan sodium ion project, and Ronbay Technology converted part of its lithium battery facilities to produce sodium ion materials.

Globally, shipments of sodium ion batteries in 2025 are recorded at around 9 GWh, jumping 150 percent compared to the previous year. In terms of performance, sodium ion batteries offer advantages at low temperatures.

A number of prototypes are able to maintain more than 90 percent of capacity at minus 20 degrees Celsius, while standard lithium batteries generally range from 80 percent. Cost estimates also show that sodium ion materials can be 30-40 percent cheaper than similar lithium materials, although the total production cost is still influenced by the scale of manufacturing and the readiness of relatively new supply chains.

Nevertheless, challenges remain. The current density of sodium ion battery energy is in the range of 100-170 Wh/kg, still below the established LFP battery (180-200 Wh/kg), and far behind ternary lithium batteries that reach 250-300 Wh/kg.

These limitations make its use not ideal for long-distance electric vehicles, while supply chain coordination and mass production are still in the development stage. Analysts estimate that sodium ion batteries will first be adopted in certain segments, such as low-end electric vehicles, applications in cold climates, and stationary energy storage.

This technology is projected to be a complement, not a full replacement of lithium-based batteries. Industry observers also assess that 2026 has the potential to be a momentum for accelerating the commercialization of sodium ion batteries in China.