China's Contemporary Amperex Technology Co., Limited (CATL), the world's largest electric vehicle battery manufacturer, announced that it will begin mass production of sodium-ion batteries, which use sodium instead of lithium, in the second half of this year. Although sodium-ion batteries have the drawback of lower energy density compared to the nickel-cobalt-manganese (NCM) batteries in which Korean battery companies excel, they are cheaper and safer. The Korean battery industry is still in the development stage of sodium-ion battery technology.
According to Reuters, CATL revealed at its 'Tech Day' event held in Shanghai on the 21st, just before the Shanghai Motor Show (April 23-May 2), that it has completed preparations for the commercialization of its second-generation sodium-ion battery, 'Naxtra', and plans to begin mass production in the second half of the year.
Naxtra is the second-generation product following the first-generation sodium-ion battery that CATL first announced in 2021. CATL announced that it would start production of Naxtra for heavy-duty vehicles in June and plans to mass-produce it for electric and hybrid vehicles in December.
The so-called 'salt battery', known as the sodium-ion battery, is the next-generation battery that uses sodium as a raw material instead of lithium for the battery cathode. Sodium is easy to obtain and is inexpensive. CATL Chairman Zeng Yuqun noted, 'The sodium-ion battery has come out of the laboratory and is ready for large-scale commercial production. It will replace up to half of the lithium iron phosphate (LFP) battery market.'
Sodium can be obtained by removing chlorine from salt. Gao Huan, the chief technology officer (CTO) of CATL's electric vehicle division, also stated, 'Energy issues can be solved with salt found in the kitchen.' The price of sodium is about 270 won per kilogram, which is one-fiftieth of the price of lithium. Considering that the cathode material accounts for about 40% of the price of secondary batteries, sodium-ion batteries can significantly reduce production costs compared to lithium-ion batteries.
Additionally, sodium-ion batteries have lower reactivity than lithium, which increases their stability. In a video from CATL's Tech Day, even when pressed from both sides, punctured with a needle and drill, and cut with a chainsaw, there was no fire. The lower risk of fire and minimal performance degradation at low temperatures are advantages of sodium-ion batteries.
The drawback is that sodium-ion batteries have lower energy density and shorter battery life compared to lithium-ion batteries. CATL had these issues with the first-generation sodium-ion battery introduced in 2021, but it has made significant improvements in the second-generation product. CATL explained that the energy density of sodium-ion batteries is similar to that of LFP batteries, at 175 watt-hours (Wh) per kilogram compared to 185 Wh per kilogram for LFP batteries. The driving range is about 500 kilometers, and it maintains more than 90% of the charge even at minus 40 degrees Celsius.
The Korean battery industry is also hastening the commercialization of sodium-ion batteries. LG Energy Solution aims to prioritize the commercialization of sodium-ion batteries over other next-generation batteries before 2030. Son Gwon-nam, head of the next-generation battery development center at LG Energy Solution, said at the 'Next-Generation Battery Conference 2025' hosted by SNE Research on the 10th, 'As the electrification of mobility expands, there is a possibility of lithium shortages and price increases. Long-term development of sodium-ion batteries is necessary.'
ECOPRO BM is developing sodium-ion battery technology as the lead organization in a project overseen by the Ministry of Trade, Industry and Energy. Choi Mun-ho, the representative of ECOPRO BM, stated at the 'InterBattery 2025' event held last month, 'We believe that our sodium-ion battery technology can compete even against China.'
CATL also unveiled its second-generation battery, 'Shenxing', which significantly enhances charging speed. Shenxing has a driving range of 800 kilometers and can drive 520 kilometers with a 5-minute charge. It can achieve 80% charge in just 15 minutes even in cold weather. This performance surpasses the charging system presented by BYD, a competitor in the Chinese electric vehicle industry, which announced a fast-charging system capable of driving 470 kilometers with a 5-minute charge last month, shocking the market.