CATL sodium-ion battery nears LFP energy density at lower mass production costs

At a recent quarterly call with investors, the world's biggest battery maker Contemporary Amperex Technology (CATL) gave an update on its sodium-ion cell manufacturing plans.

When CATL's second sodium-ion battery generation is scaled for mass production, the manufacturing costs will be much lower than the current most affordable battery chemistry, that of cheap iron phosphate (LFP) cells.

What's even more important in CATL's sodium-ion battery development update, is the claim that its Na-ion cells are now approaching the energy density of the ubiquitous LFP battery chemistry that rules supreme in both 200W powerbanks and mass market electric vehicles.

That was the main obstacle before wider sodium-ion battery adoption, as such cells are currently used mainly for proof-of-concept EV or grid-level energy storage projects that don't require high energy densities.

The recent announcement of the first sodium-ion powerbank, however, indicates that things are looking up for the mass adoption of the technology, and if the world's largest battery maker CATL is making strides in its development, competitive costs will soon follow.

CATL's sodium-ion battery update is a significant development not because it states that making cells without lithium will be cheaper than the LFP chemistry, but that it considers their mass production inevitable, saying that "once large-scale adoption is achieved, sodium-ion batteries will have a certain cost advantage over LFP batteries."

CATL became the world's largest battery maker precisely because it is very conservative with the commercialization estimates of novel technologies. Unlike startups chasing solid-state or sodium-ion battery breakthroughs that result in boutique and prohibitively expensive packs, CATL considers the mass production potential of a new battery chemistry or packaging technology first.

When NIO asked it to partner over its battery with 95% solid electrolyte, CATL scoffed at the resources it had to pry away from fulfilling current orders for its many customers. NIO then developed the 150 kWh semi solid-state battery that is in its ET7 sedan with a startup, but CATL was right that the pack became too expensive, and NIO is now renting it out for longer summer trips.

That is not to say that CATL doesn't have a decade of experience in developing solid-state batteries, but it cautions that their mass adoption will only happen after 2027. That's sooner than its previous 2030 timeframe, but CATL prefers to play it safe, and something similar seems to be in play with its sodium-ion battery technology.

Even though CATL's sodium-ion battery energy density is apparently closing in on LFP batteries, the company seemingly takes its time to perfect the chemistry with an eye on what will be feasible for low-cost mass production.