South Korean media: This time it's sodium-ion batteries, and China is once again leading the way!

On October 16, the South Korean media "Gyeongin Daily" published an article stating that the sodium-ion battery launched by China's largest battery company, CATL, is expected to become the next generation of power source for electric vehicles. Sodium-ion batteries are cheaper than the lithium iron phosphate batteries (LFP) that have rapidly expanded in market share, and they also have a lower risk of fire.

According to a report titled "Will Sodium Become the New Power Source for Widespread Adoption of Electric Vehicles?" released by the Korea Automotive Research Institute, CATL launched the sodium-ion battery Naxtra at an event in April. This is the second-generation product launched four years after the first-generation sodium-ion battery was released in 2021, and it is planned to achieve mass production in December.

Sodium-ion batteries have low production costs, high thermal stability, and chemical stability, reducing the risk of fire. In addition, the performance of sodium-ion batteries does not significantly decrease at low temperatures, maintaining over 90% of its charge even at -40 degrees Celsius. As the main raw material, sodium has a reserve in the Earth's crust approximately 1200 times that of lithium. Since it can also be supplied from seawater, there is no need to worry about price surges or dependence on specific countries even if demand increases. On the other hand, lithium is refined to high purity standards, with more than 65% of global production concentrated in China, resulting in larger fluctuations in prices and supply and demand.

As global automakers continue to diversify their battery product portfolios, sodium-ion batteries are becoming a strong alternative. The industry is paying attention to the potential of sodium-ion batteries to enter diverse markets such as low-cost electric vehicles, two-wheelers, and micro-mobility vehicles. This trend is similar to the past when China's LFP batteries quickly replaced nickel-cobalt-manganese (NCM) batteries and took the lead in the market.

Data from market research company SNE Research shows that the share of LFP batteries in the global electric vehicle market is rapidly increasing, growing from 10.4% in 2019 to 34.4% in 2021, and exceeding 52% last year.

The report analyzes that "sodium-ion batteries have advantages in price and safety, and have the potential to rapidly expand their market share like LFP." However, the energy density of sodium-ion batteries is lower than that of existing lithium-ion batteries, which leads to shorter driving ranges. Achieving economies of scale will still take some time due to limited production foundations.

Senior researcher Jea Do-won, who wrote the report, emphasized: "Considering the limitations of the current lithium-centered battery strategy, we must develop proactive strategies to respond to long-term market changes. A comprehensive and balanced perspective covering price competitiveness and the ability to cope with supply chain fluctuations is needed."

Original: www.toutiao.com/article/1846127254848586/

Statement: This article represents the views of the author.