Sodium-ion Battery Market Trends

Growth Drivers

• Abundance in raw materials: The availability of sodium is comprehensively available and cheap in comparison to lithium, which has successfully reduced supply chain risks, thereby bolstering the sodium-ion battery market’s growth and demand. According to an article published by the U.S. Department of Energy in July 2023, sodium batteries are readily manufactured by NGK and are distributed in collaboration with international chemical manufacturer BASF, comprising over 720 MW/4.9 GWh of the overall deployed storage. This is possible with large-scale deployments, which are exemplified by the 108 MW / 648 MWh system in Abu Dhabi. Besides, the ongoing sodium supply chain across different countries is also fueling the market’s growth.

  2023 Sodium Export and Import

  Countries	Export (USD)	Import (USD)
  France	48.4 million	-
  China	34.4 million	-
  Belgium	2.5 million	-
  U.S	-	31.2 million
  India	-	19.6 million
  Germany	-	8.0 million
  Global Trade Valuation	93.8 million
  Global Trade Share	More than 0.005%

OEC

• Increase in technological advancements: The aspect of optimization in anode and cathode materials is effectively bolstering the energy density as well as the cycle life, which in turn has denoted an optimistic outlook for the overall sodium-ion battery market. As per an article published by the ANL Government in November 2024, a USD 50 million consortium is expected to develop sodium ion batteries, which are poised to be extremely low-cost and sustainable compared to lithium-ion technology. In addition, this is commencing the fostering of an industrial ecosystem for sodium ion batteries, particularly in the U.S. Moreover, the nation is exceptionally focused on supplying raw materials as well as innovation for sodium ion technology, since there is a huge and substantial production of the world’s sodium chloride.
• Focus on cost competitiveness: The component of reduced or limited production expenses has made the sodium-ion battery market significantly attractive for large-scale budget and storage electric vehicle. As stated in a report published by the IEA Organization in 2025, the battery demand for storage applications and electric vehicle batteries has readily reached the 1 TWh milestone as of 2024. In addition, this demand is highly fueled by the continuous growth in electric vehicle sales, since the demand for electric vehicle batteries surged to more than 950 GWh, denoting a 25% rise in 2023. Moreover, electric cars have emerged as the principal aspect behind this particular battery demand, accounting for more than 85%, thereby making it suitable for boosting the market’s growth internationally.

Challenges

• Restricted industrial supply chains and manufacturing scale: This is one of the major challenges of the sodium-ion battery market, attributed to the underdeveloped supply chain and limited manufacturing scale for sodium‑ion batteries. Unlike lithium‑ion, sodium‑ion remains in its early commercialization phase. Besides, few large‑scale production facilities exist, with most activity concentrated in China and selective Europe-based innovators. This particular geographic concentration has created risks of supply bottlenecks and uneven adoption across regions. Without comprehensive manufacturing facilities, economies of scale are difficult to achieve, keeping expenses higher than expected despite sodium’s raw material abundance.
• Market perception and commercial adoption gaps: The sodium-ion battery market is also facing challenges related to market perception and adoption. Despite their benefits in cost, safety, and sustainability, sodium ion are frequently viewed as an experimental or second‑tier technology in comparison to lithium‑ion. This particular perception is effectively reinforced by the dominance of lithium‑ion in electric vehicles, consumer electronics, and grid storage, wherein sodium‑ion has yet to prove itself at scale. Besides, investors and end‑users remain cautious, focusing on established technologies with suitable and standard track records. Moreover, the absence of standardized performance benchmarks and certification frameworks for sodium‑ion batteries also complicates procurement decisions for utilities and OEMs, thus negatively impacting the overall market’s growth.