Sodium Battery Orders Surge as CATL Advances Tech Upgrades, Threatening LFP Dominance

On July 25, an industry insider revealed that at least three automakers have already placed orders for sodium-ion batteries with CATL (Contemporary Amperex Technology Co. Limited). According to the source, sodium-ion batteries offer advantages such as high safety, excellent low-temperature performance, lower cost, and abundant raw material reserves. Their main drawback lies in their relatively low energy density—currently about 30% lower than that of lithium iron phosphate (LFP) batteries and roughly 50% lower than that of ternary lithium batteries. However, the energy density of sodium-ion batteries is improving rapidly: CATL’s current sodium-ion battery cells have reached an energy density of 175 Wh/kg, approaching the 180 Wh/kg of LFP batteries, and the company plans to increase this to approximately 200 Wh/kg within the next two years. The insider predicts that as energy density continues to rise and cost advantages become more pronounced, sodium-ion batteries could significantly replace LFP batteries on a large scale. The future EV battery market may evolve into a tiered structure: entry-level vehicles adopting sodium-ion batteries, mid-range models using ternary lithium batteries, and premium vehicles equipped with solid-state batteries, potentially leading LFP batteries to gradually exit the mainstream market.