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BOSTON, May 17, 2024 /PRNewswire/ -- 

What is the current market sentiment surrounding sodium-ion batteries in 2024?

Sodium-ion batteries are beginning to become increasingly relevant in 2024 after many mass production announcements were made in 2023. OEMs may look to alternative chemistries to reduce reliance on critical minerals with potentially volatile supply chains. NMC(A) batteries are currently the leading battery chemistry in Europe and the UK, while LFP dominates in China. However, LF(M)P and sodium-ion offer an opportunity to decouple from risk in certain supply chains. Market analysis in Nov 2023 by IDTechEx suggests an anticipated growth of approximately 40 GWh of SIBs alone by 2030 at a minimum. However, up to an additional 100 GWh of manufacturing capacity is projected if the market is successful by 2025. These projections assume an impending boom in the SIB industry, which will depend upon commercial commitment within the next few years.

Market leaders like CATL and BYD are the ones to watch out for as they can quickly bring online some serious sodium-ion supply capability. Their announcements have leapfrogged some European players as well. Despite lingering uncertainties about market prospects, companies in Western countries are now also making moves to enter the business, seeing the future potential of Na-ion batteries. The IDTechEx report, "Sodium-ion Batteries 2024-2034: Technology, Players, Markets, and Forecasts", covers over 30 companies involved in this space and benchmarks their cells and/or their anode/cathode material. 

Where does sodium fit into the battery market mix?

An opportunity does exist from a potential shortage of lithium supply in the medium term, given the lack of necessary investment into raw material extraction. While there is sufficient lithium resource to meet forecast demand from Li-ion before accounting for recycling, the capacity to mine this lithium has not grown at the necessary rate, offering an opportunity for alternative chemistries (e.g., Na-ion) in the medium and long term. 

Furthermore, Na-ion is unlikely to replace the top-end of the Li-ion market. The two batteries will meet the application needs of different market segments, but Na-ion is expected to replace lead-acid (PbA) batteries in the future. Na-ion batteries are an attractive prospect in meeting global demand for carbon-neutral energy storage, where lifetime operational cost, not weight or volume, is the overriding factor. Stationary energy storage thus makes the perfect end-use and market for sodium, given its performance and safety characteristics.