Will Sodium-ion Batteries Disrupt the EV Market?

Lithium-ion batteries have dominated the energy storage and electric vehicle (EV) space for years, but some investors believe new technology breakthroughs could threaten their market dominance.

At the end of 2020, lithium prices took a turn, rallying through 2021 to hit all-time highs. Prices for batteries jumped too, with attention turning to new technologies that could disrupt the battery sector.

Sodium-ion batteries came into the spotlight following announcements from major players such as CATL (SZSE:300750). The world's biggest battery maker unveiled its sodium-ion battery back in 2021 and is expected to begin production this year.

Sodium is abundant and not as expensive as other raw materials, which makes it an attractive option when it comes to dethroning lithium-ion batteries. When lithium prices go up, the cost differential between lithium-ion and sodium-ion batteries of course gets bigger, which was the case for most of last year.

“If the lithium price comes down, which it has been doing recently, then that cost differential gets smaller,” Iola Hughes of Rho Motion told the Investing News Network. “So the business case for sodium-ion and the investment in sodium-ion gets pulled back slightly when lithium is cheaper.”

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.