Lithium-ion batteries dominate today because of their long service life, high energy density, high efficiency, and fast power delivery. However, rising demand raises concerns about the availability and affordability of critical materials.

The International Renewable Energy Agency’s (IRENA) report ‘Sodium-ion Batteries: A Technology Brief’ links recent interest in alternative chemistries to the vulnerabilities revealed in lithium-ion supply chains.

It notes that supply disruptions in 2021 and 2022 and geopolitical tensions intensified concerns about the resilience and cost of lithium-ion batteries.

Regarding price volatility, the IRENA says lithium carbonate prices fluctuated sharply between 2020 and 2024, spiking in 2022 and 2023 before declining, whereas sodium carbonate prices remained comparatively stable. Over that period, lithium carbonate traded roughly in the range of $6,000 to $ 83,000/ton, while sodium carbonate remained around $100 to $500/ton.

These developments encouraged efforts to diversify battery chemistries to reduce exposure to supply bottlenecks involving lithium and other key materials used in lithium-ion systems.

Sodium-ion as an alternative

Sodium-ion batteries are increasingly seen as an alternative because they are built similarly to lithium-ion cells, using sodium instead of lithium. The shared architecture allows manufacturers to adapt existing production knowledge and facilities.

Sodium’s abundance is a key advantage as it is about 1,000 times more abundant than lithium in the Earth’s crust and about 60,000 times more abundant in oceans. Commercial sodium supply relies heavily on soda ash, which has estimated global resources of 47 billion tons and reserves of 25 billion tons.

These resource conditions may help lower supply risks and reduce dependence on geographically concentrated lithium sources over time.

Technology

IRENA explains that sodium-ion batteries share the core components of lithium-ion batteries, including a cathode, anode, electrolyte, and separator. It identifies three main cathode families under development and commercialization: layered oxides, polyanionic compounds, and prussian blue analogues.

For anodes, hard carbon is presented as the leading commercial choice. Hard carbon can be produced from biomass or synthetic precursors, and the notes that its processing requirements may influence cost and scalability.

A further design distinction is that sodium-ion cells can use aluminium current collectors on both electrodes, whereas lithium-ion cells typically require copper on the anode side.

Performance

The IRENA notes that sodium-ion batteries are already comparable to lithium-ion batteries across several performance parameters, especially safety, temperature tolerance, and cycling. However, they remain behind in energy density.

Present-day commercial sodium-ion batteries are reported to deliver 90 to 160 watt-hours (Wh)/kg gravimetric energy density, while lithium-ion batteries typically reach 150 to 300 Wh/kg. The sodium-ion volumetric energy density is listed at 250-375 kWh/m³. Their cycle life ranges from 500 to 8,000 cycles, efficiency is around 92%, and operating temperatures span from 40°C to 80°C.

The wide temperature window is emphasized as a major advantage for harsh climates and for applications where thermal management is costly.

Sodium-ion batteries also claim fast-charging and durability claims from commercial products, including charging to 80% in around 15 minutes and retaining about 80% capacity after 4,000 to 5,000 cycles.

Energy density is identified as the key development priority. Manufacturers expect gravimetric energy density for next-generation sodium-ion cells to reach 200 Wh/kg .

Cost

Sodium-ion batteries were expected to have a cost advantage over lithium-ion batteries. However, that advantage has narrowed after lithium-ion material prices fell sharply from their peaks.

Sodium-ion cell costs in 2022 ranged from $80 to $105/kWh, and pack costs ranged from $90 to $125/kWh. For lithium-ion batteries, average cell costs in April 2024 are listed at $52 to $81/kWh, and pack costs at $75 to $ 104/kWh.

Analysis suggests that sodium-ion batteries gain a cost edge if lithium carbonate prices rise above roughly $20,000/ton. It also notes industry expectations that large-scale sodium-ion production could push cell costs down to about $40/kWh.

Sodium-ion best fit

Sodium-ion batteries are positioned as particularly suitable for stationary storage, where energy density constraints are less critical. Their potential role in renewable integration is aided by safety advantages and broad operating temperatures.

In transport, sodium-ion is best suited for short-range applications and two- and three-wheelers, where cost and adequate range matter more than high energy density. Asia is identified as a major region for these applications.

China’s Dominance

Sodium-ion batteries moving rapidly from pilot stages into industrial-scale production. Announced global sodium-ion manufacturing capacity is projected to reach around 70 GWh/year by 2025 and exceed 400 GWh/year by 2030.

This expansion is highly concentrated. IRENA states that more than 95% of announced sodium-ion production capacity is located in China, and early commercial rollouts, including compact passenger EVs and electric scooters, are also centered there.

While sodium resources are globally widespread, near-term manufacturing concentration represents a risk for diversification goals.

China has set a target to install over 180 GW of energy storage capacity by 2027, up from 95 GW as of June this year. The capacity addition will involve an investment of approximately RMB250 billion (~$35 billion).

India

IRENA points to India as an emerging market where sodium-ion adoption could begin in two- and three-wheeler segments. Sodium-ion deployment in India is expected to begin around 2026 owing to the size and growth of India’s light-mobility market.

More broadly, the report suggests emerging markets may benefit from sodium-ion’s lower exposure to lithium supply shocks, safer handling and transport properties, and resilience in extreme temperatures.

Risks

Several challenges could slow the expansion of sodium-ion technology. Energy density shortfalls relative to high-end lithium-ion batteries remain the principal technical barrier to long-range EV applications.

Market demand is uncertain, with 2030 forecasts ranging widely from about 50 to 600 GWh/year. The report treats this spread as a major risk for industrial planning and investment.

Supply-side constraints are also highlighted. Planned hard-carbon anode capacity is not increasing as quickly as sodium-ion cell capacity, creating a potential bottleneck.

In addition, continued lithium-ion cost declines could delay sodium-ion competitiveness unless sodium-ion achieves rapid scale-driven cost reductions.

1.5°C alignment

The report analyzes sodium-ion within the context of IRENA’s 1.5°C scenario. Even under this rapid electrification pathway, sodium-ion batteries are assumed to supply less than 10% of EV battery demand by 2030. Sodium-ion growth is likely to be significant in absolute terms, but still complementary to lithium-ion dominance through the decade unless performance and costs improve faster than expected.

Outlook

Sodium-ion batteries are transitioning into commercial reality, driven by abundant resource availability, compatibility with lithium-ion manufacturing processes, and improved product performance.

It describes near-term deployment as concentrated in stationary storage and short-range mobility, with emerging markets in Asia, including India, likely to play an important early role in two- and three-wheeler uptake.

Sodium-ion’s longer-term role as dependent on closing the energy-density gap, achieving scale-based cost reductions, and ensuring hard-carbon anode supply expands reliably alongside cell manufacturing.

Global investments in energy transition technologies reached a record high of $2.4 trillion in 2024, a 20% increase from the average annual levels of 2022/2023.