[C Tech Now] Can 'Sodium-Ion Battery,' Backed by Former Tesla Executive, Become a Game Changer?

"Key to Unlocking Renewable Energy Potential"
Advantages of Low-Cost Raw Materials and Safety
Low Energy Density Poses Challenges

17 Chinese Battery Companies Launch Development Offensive
Accelerating Electric Vehicle Development and Commercialization through Joint Ventures

India Expands Electric Vehicle Share to 30%
Fostering Alternatives to Reduce Lithium Dependence on China

Korea to Initiate Technology Securing R&D from Next Year

Editor's NoteC-Tech refers to energy technologies related to Climate, Clean, and Carbon. C-Tech Now delivers the latest C-Tech trends and field news.

On October 4th (local time), venture capital firms TDK Ventures and Eclipse Ventures announced an investment of $10 million (approximately 13.4 billion KRW) in the U.S. startup Peak Energy. Peak Energy was founded by Landon Mossburg, a former senior executive at U.S. electric vehicle company Tesla and Swedish battery firm Northvolt, and is developing sodium-ion batteries.

In a media interview, Mossburg emphasized, "Sodium-ion batteries are the key to unlocking the potential of renewable energy and will completely decarbonize the power grid." TDK Ventures, which invested in the company, is a subsidiary of Japan's TDK and has ATL, a battery supplier for Apple products, as an affiliate. Greg Reichow, a former Tesla vice president and current partner at Eclipse Ventures, will also serve as a non-executive director at Peak Energy.

Sodium-ion batteries use sodium metal as the cathode material instead of lithium, which currently dominates the secondary battery market. Following the Anglo-American term for sodium, English-speaking countries refer to them as sodium-ion batteries. Interest in sodium-ion batteries has surged since April when the world's largest battery company CATL and Chinese automaker Chery announced plans to unveil sodium-ion battery electric vehicles in the second half of this year.

China's Serious Commitment to Sodium-Ion Batteries

The biggest advantage of sodium-ion batteries is their affordability. Sodium (atomic number 11) and lithium (3) are both group 1 elements on the periodic table with similar chemical properties. However, sodium's reserves are about 423 times greater than lithium's. It is abundant in seawater and the earth's crust, making it easy to extract. As of June 2023, the price of sodium carbonate per metric ton was $290, about 1/20th of lithium carbonate (99.5% purity) priced at $35,000.

These advantages can significantly reduce battery and electric vehicle costs. CATL predicted that battery costs could be reduced by $77 per kilowatt-hour (kWh). Sodium-ion batteries are also safer than lithium-ion batteries, with a lower risk of fire.

On the other hand, sodium-ion batteries have lower energy density than lithium-ion batteries, making them less suitable for high-performance electric vehicles. The International Energy Agency (IEA) analyzed the energy density of sodium-ion batteries as 75?160 Wh/kg in its '2023 Electric Vehicle Outlook' report, which is lower than lithium-ion batteries (120?260 Wh/kg).

However, as Chinese battery companies successively announce plans to commercialize sodium-ion batteries, the possibility of a new market opening is emerging. If sodium-ion batteries, which are cheaper and more stable than lithium-ion batteries, are properly commercialized, they could have a significant impact on the secondary battery market. Domestic battery companies have already responded belatedly after the Chinese lithium iron phosphate (LFP) battery market, once dismissed as only for low-cost batteries, expanded greatly.

The energy density of the sodium-ion battery first unveiled by CATL in 2021 is 160 Wh/kg. CATL is developing toward a target energy density of 200 Wh/kg. This is lower than the ternary batteries such as NCM (Nickel-Cobalt-Manganese) that domestic companies focus on but similar to LFP batteries. CATL is known to have invited the late Nobel Chemistry laureate John B. Goodenough as a technical advisor to build technological expertise in sodium-ion battery research.

Following CATL, in June, China's largest electric vehicle manufacturer BYD announced a joint venture with the small and medium-sized automaker Huaihai to establish a sodium-ion battery production hub in Suzhou, Jiangsu Province.

Earlier this year in February, Chinese automaker JAC Motors unveiled the world's first sodium-ion battery vehicle, the Hua Xianzi. This vehicle is equipped with a 25 kWh battery developed by HiNa Battery. It can travel up to 250 km on a single charge. The energy density per weight is 140 Wh/kg. HiNa Technology, which supplied the battery to JAC Motors, was established in 2017 by the Institute of Physics, Chinese Academy of Sciences.

The Chinese government has also taken steps to foster the sodium-ion battery industry. In July, Chinese authorities announced that 17 sodium-ion battery companies passed evaluations at the sodium-ion battery industry research report presentation.

India Promotes Electric Vehicles with Sodium-Ion Batteries

China is not the only country interested in sodium-ion batteries. India, the world's most populous country, is considering sodium-ion batteries as one of the alternatives to lithium-ion batteries due to their lower cost.

India, which is behind China in technology development, is actively adopting advanced technologies. Reliance New Energy Solar, the energy subsidiary of India's largest conglomerate Reliance, acquired 100% of the shares of the UK sodium-ion battery company Faradion for ?100 million in January. Founded in 2011, Faradion is known for having top-level technology in this field.

Reliance announced plans to apply Faradion's technology to the gigafactory being built in the Jamnagar region of western India. Reliance explained, "We will utilize sodium-ion batteries to secure energy storage technology needed for renewable energy and the rapidly growing electric vehicle market."

The Indian government is implementing various policies under the goal of increasing the electric vehicle share to 30% by 2030. Additionally, the demand for batteries to store energy is rapidly increasing due to the construction of solar and wind power plants.

The problem is that about 80% of the lithium supply chain, a key mineral for lithium-ion batteries, depends on China. India is in conflict with China in international relations. It is risky to rely solely on lithium-ion batteries from a national security perspective. Considering India's income level (per capita gross national income of $2,380 as of 2022), sodium-ion battery electric vehicles could be an excellent alternative to lithium-ion batteries.

Local InCred Securities emphasized in a report last September that "sodium-ion batteries can solve geopolitical and supply chain issues related to lithium-ion batteries" and "because the materials can be produced domestically, they can be a living example of 'Make in India' and 'Make for India'." 'Make in India' is a phrase coined by Indian Prime Minister Narendra Modi to emphasize manufacturing promotion policies.

Sodium-ion batteries are expected to be an important means for electrifying three-wheelers, a major mode of transportation for the Indian lower-income population. InCred Securities explained, "Sodium-ion batteries could find a niche market in small electric vehicles that do not require long-distance driving."

Hesitant South Korea, R&D to Start Next Year

South Korea's three major battery companies have not yet fully entered the sodium-ion battery market. They appear to be hesitant to invest due to the niche market nature of sodium-ion batteries and the still uncertain market outlook. Market research firm Fastmarkets forecasts that sodium-ion batteries will reach a market share of 9% by 2033.

The government has started supporting research and development (R&D). From next year until 2028, it plans to provide 28.2 billion KRW in support for sodium-ion battery development. Lee Jung-doo, secondary battery PD at the Korea Institute for Industrial Technology Evaluation and Planning, explained, "Although sodium-ion batteries have uncertainties, it was recognized as necessary to secure technology, so new R&D will be promoted."