Battery Technology China: Sodium-Ion Batteries to Achieve their Breakthrough in 2026

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The year 2026 will mark an important milestone for battery technology in China, affecting electromobility and the energy storage market in equal measure. This is what analysts in the People's Republic of China have been saying since CATL announced the large-scale series production of its sodium-ion batteries at the end of 2025.

On December 28, 2025, Contemporary Amperex Technology (CATL), China's largest battery manufacturer, announced at its annual supplier conference that it will introduce sodium-ion batteries on a large scale in 2026. This was reported unanimously by several Chinese trade media from Ningde. The new type of battery is to be produced in large quantities at several locations this year, and for several applications at once: Batteries for passenger cars and trucks, battery swap systems and energy storage.

According to market observers, the commercial mass production of sodium-ion batteries will finally begin in 2026. This is relevant for the further development of the battery industry, electromobility and the energy sector for various reasons.

Costs Will Fall in the Near Future

With this acceleration, it is foreseeable that the cost of car batteries and energy storage systems will soon fall. Lithium-ion batteries have dominated these industries for decades, but sodium-ion batteries can be produced more cost-effectively. One of the reasons for this is that lithium, which is relatively expensive and has a high environmental impact during processing, can be replaced by sodium, which is available in abundance thanks to the salt in the world's oceans. Another advantage is that they function more reliably in extreme cold, which is particularly important in the northern Chinese winter, but also in some other countries.

CATL will begin mass production of two product lines this year, namely the "Naxtra power battery" and the "Naxtra 24-volt heavy-duty start-stop integrated battery". "Both are designed for the entire temperature range from 40 °F to 158 °F," reports the Chinese technology portal IT Zhijia.

Sodium-ion batteries are also considered safe. CATL's new batteries of this type are already certified for the Chinese safety standard GB 38031-2025, which comes into force in July 2026.

Sodium-Ion Batteries Will Take Up Half of the Current Battery Market

The disadvantage of the new battery type is also known. Sodium-ion batteries have a lower energy density than lithium-ion batteries, even though there has recently been great progress in battery research and development by some manufacturers. For this reason, CATL has announced that it intends to market both technologies in parallel for the foreseeable future. With sodium-ion and lithium-ion, "two stars" are now shining in the battery industry's sky, it is said with some poetry. In the long term, CATL expects sodium-ion batteries to take over at least half of the current battery market. .

The energy density of sodium-ion batteries is already sufficient for smaller e-cars. With an energy density of 390 Wh/lb, CATL promises a range of at least 311 miles for the Naxtra Power battery. For this reason, market observers are certain that it will first become popular for cars in the medium to low price segment.

Obvious Area of Application Energy Storage

However, the largest area of application could initially be in energy storage systems. These are needed in increasing quantities in China due to the rapid expansion of solar and wind power. And this is where sodium-ion batteries are particularly competitive. Compared to vehicle batteries, storage batteries do not have to be compact. They can be larger and deliver sufficient power despite their relatively low energy density. "The most important application for sodium-ion batteries may not be the road, but the power grid," writes the MIT Technology Review.

In the past two years, Chinese battery manufacturers' sales of sodium-ion batteries have already grown rapidly. In 2024, growth amounted to 260% year-on-year. From January to September 2025, Chinese companies such as Veken Technology, HiNa Battery Technology, CATL, BYD, Jiangsu HighStar, East UPS and CNAE increased their production by around 200% to a total of six gigawatt hours.

High Growth Forecast

Explosive growth is now expected in this market segment over the next five years from 2026. "The wave of expansion for sodium-ion batteries has already begun. Global shipments are expected to exceed 100 GWh by 2028, with a market size of more than 100 billion yuan (around $14.5 billion USD)," writes Sinopec News magazine.

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