Sodium-Ion Batteries Set to Revolutionize the Future of Mobility

Cost of Lithium-Ion battery constitutes around 50 - 60% of the cost of electric vehicles. Therefore, if the cost of battery can be reduced, this will help in mass adoption of EVs. Sodium-ion batteries are gearing up to transform the passenger car segment, offering a promising alternative to traditional Lithium-ion batteries. Sodium-ion batteries are expected to be at least 20% cheaper than Lithium-Ion batteries. In future, these batteries are poised to significantly enhance urban mobility applications on account of the cost arbitrage they enjoy over lithium-ion batteries. Sodium-ion and lithium-ion batteries are both rechargeable batteries used for energy storage, but they have distinct differences and applications. Following is a comparison of the two technologies:

Materials and Availability

Sodium-Ion Batteries use sodium compounds, which are more abundant and cheaper than lithium. Sodium is the sixth most abundant element in the Earth's crust, making it widely available and less expensive to source. Li-Ion batteries use lithium compounds, which are more energy-dense but less abundant. Lithium is less abundant and more expensive to extract, leading to higher material costs.

Energy Density

Sodium-Ion batteries generally have a lower energy density compared to lithium-ion batteries. This means they store less energy per unit weight. Li-Ion batteries have a higher energy density, making them more suitable for applications where weight and space are critical, such as in portable electronics and electric vehicles.

Performance and Efficiency

Sodium-Ion batteries typically have a shorter lifespan and lower efficiency in terms of charge/discharge cycles. However, advancements are being made to improve these aspects. Li-Ion batters are known for their high efficiency, long cycle life and reliability, making them the current standard for many high-performance applications.

Cost

Sodium-Ion batteries are expected to be cheaper due to the abundance of sodium and the potential for using less expensive materials for the battery components. Li-Ion batteries are more expensive due to the higher cost of lithium and the complex manufacturing processes required.

Environmental Impact

Sodium-Ion batteries potentially have a lower environmental impact due to the abundance and non-toxicity of sodium. The extraction and processing of sodium are generally considered to be more environmentally friendly. Li-Ion batteries pose environmental concerns include the mining and processing of lithium, which can have significant ecological impacts. Recycling and disposal of lithium-ion batteries also pose environmental challenges.

Safety

Sodium-Ion batteries typically have a lower risk of thermal runaway (a dangerous condition where the battery overheats and potentially catches fire) compared to lithium-ion batteries. Li-Ion batteries, while generally safe, they have a higher risk of thermal runaway and require more sophisticated management systems to ensure safety.

Thus, sodium-ion batteries offer a promising, cost-effective, and environmentally friendly alternative for certain applications, especially where energy density is less critical. Li-Ion batteries, on the other hand, remain the preferred choice for high-performance applications due to their superior energy density and efficiency. The choice between the two depends on the specific requirements of the application, including cost, performance, and environmental considerations.

Recent news surrounding Sodium-Ion technology:

Several companies are actively developing sodium-ion batteries, aiming to provide a more sustainable and cost-effective alternative to lithium-ion technology.

1. BYD: The Chinese electric vehicle and battery manufacturer BYD is building a significant sodium-ion battery plant in Xuzhou, China. Ground-breaking was done in January 2024 and BYD cars with sodium-ion technology are set to hit the roads later this year. This facility, with an annual capacity of 30 GWh, will primarily produce batteries for electric vehicles, especially low-cost models and two-wheelers.
2. Altris AB: A Swedish company, Altris, specializes in sodium-ion battery technology. They have partnered with Clarios to develop low-voltage sodium-ion batteries for automotive applications. Additionally, Altris is setting up a pilot plant to produce these batteries and is working on energy storage solutions with Polarium.
3. CATL: Contemporary Amperex Technology Co. Limited (CATL), a leading Chinese battery manufacturer, is integrating sodium-ion batteries into its product line. CATL is supplying these batteries for Chery Auto's iCar brand, highlighting its commitment to this emerging technology..
4. Natron Energy: Based in the U.S., Natron Energy is repurposing a former lithium-ion battery plant to produce sodium-ion batteries. Initially, these batteries will cater to energy storage needs in data centers, with future plans to expand into markets like off-road industrial vehicles and EV fast charging stations.
5. HiNa Battery Technology: HiNa, in collaboration with JAC Motors, is working on sodium-ion batteries for electric vehicles. This partnership focuses on creating affordable EV solutions using sodium-ion technology.

These companies are at the forefront of sodium-ion battery innovation, addressing various applications from automotive to large-scale energy storage, driven by the advantages of sodium's abundance and lower cost compared to lithium.

Developments in India:

In India, Reliance Industries acquired two battery companies for about $200 million in 2021 and 2022, respectively. The acquired entities, UK-based Faradion, which makes sodium-ion batteries, and Lithium Werks, which produces lithium iron phosphate (LFP) batteries are now closely working with Reliance to fine tune the technology. KPIT Technologies has officially declared that they are seriously working on the Sodium-Ion technology and may commercialize the technology in near future. In February 2024, Sodion Energy unveiled India's first Sodium-Ion battery with 10-year warranty.