Sodium-ion battery developed by GM for ESS. (Photo courtesy of GM)
As China’s low-cost battery offensive expands from lithium iron phosphate (LFP) to sodium-ion, Korean battery makers are also accelerating their pursuit. LG Energy Solution has begun preparations for commercialization by establishing sodium-ion battery production lines in Nanjing, China, and Ochang, South Korea. In order not to yield dominance to China in the energy storage system (ESS) market, where price competitiveness is crucial, the domestic battery industry is raising its level of response beyond research and development (R&D) to building production lines and conducting customer verification.
According to the industry on Oct. 2, LG Energy Solution has completed the proof of concept (PoC) for sodium-ion batteries suitable for the long-duration ESS market with customers and is discussing specific commercialization plans. The goal is to ship sodium-ion battery samples to ESS customers in the United States next year.
LG Energy Solution has reportedly retrofitted an existing production line at its Nanjing Plant 1 in China to build a pilot line with an annual capacity of 200MWh, and is also constructing a mother line at its Ochang plant in South Korea. Sodium-ion batteries are evaluated as being able to lower the burden of new investments because parts of existing lithium-ion battery production lines can be retrofitted and utilized. If necessary, it is also possible to respond by utilizing existing idle production capacity (CAPA).
Previously, LG Energy Solution also disclosed its sodium-ion battery commercialization plan during its second-quarter earnings release conference call. At the time, the company stated that it had secured sodium-ion battery technology suitable for the long-duration ESS market, completed product technology verification on a scale of hundreds of megawatt-hours (MWh) with major customers, and is discussing specific commercialization plans with them.
Rather than completely replacing lithium-ion batteries immediately, sodium-ion batteries are drawing attention as a next-generation alternative that will replace a portion of the low-cost ESS and entry-level electric vehicle (EV) markets currently dominated by LFP. In particular, as China’s CATL secures large-scale production capacity and actively pushes for commercialization, domestic battery companies are also seen accelerating their responses.
CATL unveiled its next-generation ESS product based on sodium-ion batteries, ‘TENER Sodium,’ in June. This product provides over 10,000 charge and discharge cycles at 45 degrees Celsius and maintains over 92% of its capacity even at minus 20 degrees Celsius. The explanation is that it can be widely utilized from cold regions to high-temperature regions. CATL plans to start supplying sodium-ion ESS in China this year, ship a cumulative 1GWh by the end of the year, and begin global supply starting in June next year.
It has already secured a large-scale supply contract. In April, CATL signed a contract to supply a total of 60GWh of sodium-ion batteries over the next three years with the Chinese ESS company Hyperstrong. CATL explained that this is the world’s largest sodium-ion battery supply contract to date.
Also called a ‘salt battery’, a sodium-ion battery operates by sodium ions moving between the cathode and the anode to charge and discharge, instead of lithium ions. It is considered an advantage that sodium, the core raw material, is abundant and its procurement regions are relatively wide, which can lower raw material price fluctuations and supply chain risks. Thus far, sodium-ion batteries have been researched since around the same time as lithium-ion batteries, but they have been pushed back in the commercialization competition due to their relatively low energy density.
The market where sodium-ion batteries are primarily receiving attention is mid-to-long-term ESS. While energy density, which reduces the weight and volume of the battery, is important for electric vehicles to increase driving range, ESS has relatively fewer constraints on space and weight. Accordingly, sodium-ion batteries, which have lower energy density than LFP, are evaluated as being capable of entering the market by highlighting their price competitiveness, lifespan, and safety. In particular, due to their characteristic of maintaining output performance even at low temperatures, their utilization is expected to be high in the ESS markets of regions with low temperatures.
LG Energy Solution plans to expand the application of sodium-ion batteries to the long-duration ESS market, which stores power for more than 6 hours. It is also preparing plans to target the replacement market for automotive lead-acid batteries in the future.
Samsung SDI is also preparing for the commercialization of sodium-ion batteries. Viewing the lifespan, output, and safety of sodium-ion batteries as strengths, Samsung SDI is developing uninterruptible power supply (UPS) and power ESS products that incorporate its proprietary technology. The company plans to specify its commercialization and mass production plans in the future.
