The world’s first batch of sodium-ion battery-powered cars has rolled off the production line! They will engage in differentiated competition with lithium-ion battery cars, and the scale application is still awaiting some time.
The application of sodium-ion batteries has achieved a new breakthrough.
Recently, both Zhongkehai Sodium and Jiangling Group announced the production kickoff of new energy vehicle models equipped with sodium-ion batteries. On December 27, 2023, Zhongkehai Sodium announced the official production kickoff of the sodium-ion battery-powered version of the Huaxianzi electric vehicle, jointly launched with Jianghuai Yttrium; on December 28, 2023, Funeng Technology and Jiangling Group’s new energy vehicle collaboration, the pure electric A00-class model Jiangling Yizhi EV3 (Youth Edition), equipped with sodium-ion batteries, officially rolled off the assembly line.
It is reported that these two models have become the world’s first batch of sodium-ion battery-powered cars to be produced. According to reporters from “Everyday Economic News,” compared to lithium-ion batteries, sodium-ion batteries have characteristics such as better low-temperature performance, more stable prices, and stable resource supply. Currently, many companies, including Contemporary Amperex Technology (CATL), Honeycomb Energy, Zhongkehai Sodium, and Funeng Technology, have laid out in the sodium-ion battery-related industry.
A professional in the sodium-ion battery industry stated in an interview with a reporter that sodium-ion battery products have significant potential. “They have good low-temperature endurance, support fast charging for replenishing energy, and perform well in low-temperature capacity. Although sodium-ion battery prices are not significantly advantageous compared to lithium-ion battery products at the moment, it does not mean it won’t be in the future. Sodium-ion batteries will also experience large-scale applications in the future.”
Xinlu Lithium Battery industry senior analyst Zhang Jinhui told reporters that at this stage, sodium-ion batteries are still considered a backup plan. The current supply chain system is not well-established, and the cost reduction curve has not yet begun. In the future, sodium-ion batteries have the opportunity to be cheaper than lithium iron phosphate batteries, with application spaces potentially replacing some lead-acid battery markets, some A-class car markets, and energy storage markets. “About half of the lithium battery supply chain companies are entering the sodium-ion battery field, and the path that lithium batteries have taken in the past 10 years to reduce costs is estimated to take about 5 years for sodium batteries,” predicted Zhang Jinhui.
Several companies are investing in sodium-ion batteries. Looking at the design of the two sodium-ion battery-equipped models in terms of range, both focus on short-distance driving.
The sodium-ion version of the Huaxianzi model, equipped with Zhongkehai Sodium’s ME12 cylindrical sodium-ion battery cells, has an energy density greater than or equal to 140 Wh/kg. According to the Ministry of Industry and Information Technology’s earlier announcement, the sodium-ion version of the Huaxianzi model is an A00-class model with a range of 252 kilometers, and the price has not been disclosed. Jianghuai Yttrium is expected to start mass delivery of new cars in January 2024.
It is reported that Zhongkehai Sodium has focused on sodium-ion battery research and development in recent years and has collaborated with several companies. For example, in April 2023, it signed a strategic cooperation framework agreement with Chuneng New Energy Co., Ltd. to cooperate in sodium-ion battery new product development, mass production, market promotion, and industrial collaboration.
Jiangling Yizhi EV3 (Youth Edition) is also an A00-class model, and the range version is 251 kilometers. Funeng Technology’s currently produced sodium-ion battery energy density is between 140 and 160 Wh/kg. A representative from Funeng Technology told reporters that the company will not only introduce sodium-ion battery products for the passenger car market but also expand customers in the two-wheeler and energy storage sectors, broadening the application scenarios for sodium-ion batteries.
In terms of data, compared to most A00-class lithium-ion battery models, the range of the two sodium-ion battery models still has a gap, but the energy density is almost the same.
According to a representative from Funeng Technology, besides the layered oxide route, the company is also researching other technical routes such as Prussian blue and polyanion. According to the plan, Funeng Technology will launch the second generation of sodium-ion batteries in 2024, with an energy density reaching 160-180 Wh/kg; by 2026, the product’s energy density will further increase to 180-200 Wh/kg.
According to incomplete statistics, in recent years, many companies, including Contemporary Amperex Technology (CATL), BYD, and Penghui Energy, have laid out in the sodium-ion battery business. For example, in November 2023, BYD’s subsidiary Fudi Battery signed an agreement with Huaihai Holdings Group to jointly invest in a sodium-ion battery project, with a total planned investment of 10 billion yuan, an annual capacity of 30 GWh, aiming to create the world’s largest micro-car sodium battery system.
In addition to four-wheeled new energy vehicles, two-wheeled electric vehicle companies have also entered the “sodium-ion era.” For example, in March 2023, TBEA Energy released the new generation sodium-ion battery product “TianNa T1” series modules and completed sample deliveries to several first-tier two-wheeler companies. TBEA Energy stated to reporters that the sodium battery business is progressing smoothly, and further developments can be anticipated.
“At this stage, the industry’s efforts are aimed at hoping that the energy density of sodium-ion batteries can approach that of lithium iron phosphate batteries. When the energy density is equivalent, the price advantage of sodium-ion batteries will be reflected,” said the aforementioned professional. The success of sodium-ion batteries in entering the market confirms the feasibility of the technological route, but the cost-effectiveness has not yet reached a turning point.
Huajin Securities previously released a research report showing that sodium-ion batteries have advantages over lithium iron phosphate batteries in terms of raw material costs, capacity retention at low temperatures, and resistance to over-discharge, and their overall performance surpasses lead-acid batteries. Sodium-ion batteries are expected to be applied in the electric two-wheeler market (replacing lead-acid batteries), A00-class electric vehicles, and the energy storage field (replacing lithium iron phosphate batteries). According to estimates, global demand for sodium-ion batteries is expected to grow from 3.6 GWh in 2023 to 65.8 GWh in 2025, with tremendous growth potential.
“At the current stage, it seems that sodium-ion batteries may not have significant advantages in terms of range and price, but not doing anything just because the industry is ‘moving slowly’ is not the right approach,” said the aforementioned professional. At present, it may not be feasible, but the future prospects for terminal application scenarios are optimistic, such as in automobiles and energy storage systems, where the application of sodium-ion batteries will likely be seen.
In terms of energy storage applications, reporters learned from Xingchu Century that in December 2023, the first phase of the 500 kW/1 MWh sodium-ion solar energy storage and charging integration demonstration project, with 50 kW/105 kWh in Ziyang, was successfully put into
operation, becoming the first sodium-ion energy storage demonstration project in Sichuan Province.
According to the “China Sodium-ion Battery Industry Development White Paper (2023)” published by EV Tank, the sodium-ion battery industry chain is expected to complete customer product verification, improve product yield, cultivate various links in the industry chain, and promote demonstration projects in 2023 and 2024. The cost advantage of sodium-ion batteries will truly be reflected in 2025, achieving true economically significant industrial development.
The aforementioned insider from a listed battery company told reporters that theoretically, lithium batteries are not completely mature yet, as there is still some distance to the final “ideal” battery. Sodium-ion batteries are also the same. The insider told reporters, “But whether it’s a power battery or an energy storage battery, the entire market scale is large, and there are many subdivided markets. I don’t think there is any universal product that can dominate the entire market. Sodium-ion batteries can be applied in certain subdivided markets, thus promoting the industrialization process. Considering the uneven distribution and supply-demand imbalance of lithium resources, in certain extreme situations, sodium batteries will have better security.”