19 Trillion Sodium-Ion Battery Market Opens... "24% Cheaper Than LFP"

Analysis suggests that the market penetration of sodium-ion batteries, which are cheaper than existing lithium iron phosphate (LFP) batteries, has begun. With a price advantage of up to 24% lower, it is expected to form a market worth 19 trillion KRW annually by 2035.

On the 24th, SNE Research forecasted in its report titled "Sodium-ion Battery (SiB) Technology Development Trends and Market Outlook" that the price gap between sodium-ion batteries and lithium-ion batteries (based on LFP cathode materials) will widen to up to 24% by 2035. The price difference is expected to be even greater when compared to ternary lithium-ion batteries such as nickel-cobalt-manganese (NCM).

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Sodium-ion batteries are next-generation batteries with price competitiveness compared to lithium-ion batteries. These batteries use sodium as a raw material; although their energy density is lower, they have higher electrochemical stability and less performance degradation at low temperatures. Full-scale mass production is expected to begin in 2025, with applications in industries such as two-wheelers, small electric vehicles, and energy storage systems (ESS).

The sodium-ion battery market began to emerge prominently when the Chinese battery company CATL announced its development and production plans in 2021. Interest in sodium-ion batteries grew further in 2022 as the price of lithium carbonate, a raw material for lithium-ion batteries, surged to 600,000 yuan per ton (approximately 111 million KRW).

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SNE Research projects that by 2035, sodium-ion batteries will be produced at prices at least 11% and up to 24% cheaper than LFP batteries. The sodium secondary battery market is expected to be influenced by fluctuations in raw material prices.

SNE Research also forecasts that if price competitiveness increases due to raw material price changes, market demand could reach up to 254.5 gigawatt-hours (GWh) by 2035. The market size in monetary terms is estimated at 14.2 billion USD (approximately 19 trillion KRW) annually.

In China, the launch of two-wheelers and electric vehicles using sodium-ion batteries has already begun.

Yadi (雅迪), a leading Chinese electric motorcycle manufacturer, established its subsidiary Huayu (?宇) and released the electric motorcycle model 'JiNa No.1' at the end of 2023.

In January 2024, Chinese electric vehicle brand JAC (江淮汽?) began selling the Huaxianzi (花仙子) electric vehicle, which uses the 32140 cylindrical sodium-ion battery from Hina Battery (中科海能). Chinese companies plan to reach a sodium-ion battery production capacity of 464 GWh by 2035.

Outside China, companies such as Faradion in the UK, Altris in Sweden, Tiamet in France, and Natron Energy in the USA have announced plans for mass production of sodium-ion batteries.

In South Korea, Energy11 is the only company that has announced plans to manufacture sodium-ion batteries. Aekyung Chemical is producing anode materials for sodium-ion batteries.

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