Sodium-ion batteries are emerging as a viable alternative to lithium-ion batteries, addressing the challenges posed by the scarcity of lithium, cobalt, and nickel. While lithium-ion batteries have been crucial for the electrification needed to combat the worst effects of global warming, their reliance on these scarce metals poses limitations. Sodium-ion batteries offer a promising solution, as sodium is abundant in salt water and does not require cobalt or nickel.

Chinese companies, led by CATL, are at the forefront of sodium-ion battery development, with 34 factories either built, being constructed, or announced. These companies are exploring different battery chemistries and are focused on producing layered-oxide cathodes using sodium instead of lithium. This shift challenges lithium's dominance in the electrochemical industry.

Sodium-ion batteries are particularly suitable for grid-scale storage, home storage, lorries, and ships. They offer advantages in these applications as weight and size are not critical factors. However, their potential in weight-sensitive applications such as electric cars and aircraft remains uncertain. The economic viability of sodium-ion batteries depends on the cost of materials, specifically lithium, cobalt, and nickel.

While sodium-ion batteries show promise, it is important to acknowledge that battery technologies take time to mature. Benchmark Mineral Intelligence predicts that by 2030, the manufacturing capacity for sodium-ion batteries could reach 140 gigawatt-hours of storage per year. However, only a small portion of this capacity is expected to be dedicated to sodium-ion cell production.

In conclusion, sodium-ion batteries offer potential solutions to the scarcity of key materials and ethical concerns related to cobalt mining. Chinese companies and non-Chinese startups are actively developing sodium-ion battery technology. While sodium-ion batteries show promise for grid storage and heavy transportation, further advancements and industry developments are needed for widespread adoption.

Source: The Economist