Sodium-ion Battery Market Trends

Growth Drivers

• Rising use of sodium-ion batteries in automobiles: One of the prime factors augmenting the sales of sodium-ion batteries is the increasing popularity of environmentally friendly energy storage solutions. The growing importance of renewable energy sources worldwide is fuelling the demand for sustainable and efficient energy storage technologies such as sodium-ion batteries.
  
  Several industries including automotive, consumer electronics, and marine are adopting sustainable manufacturing practices that are further promoting the sales of sodium-ion batteries. For instance, in December 2022, Faradion installed its first sodium-ion battery at a trial site in Australia. This move is increasing the use of Faradion’s sodium-ion batteries across residential, commercial, and industrial sectors in Australia.
• Abundance of sodium compared to lithium: The high reserves of sodium across several countries are making a smooth way for advancements in sodium-ion battery technology. For instance, according to a report by the Observatory of Economic Complexity, in 2022, France, Nigeria, China, the UK, and Australia were the top importers of sodium.
  
  Lithium is limited to certain regions that make disturbances in supply chain management due to various reasons including geo-political tensions. The abundance of sodium is driving the development and commercialization of sodium-ion batteries. This also makes sodium-ion batteries cost-effective and the most sought-after energy storage solutions in automotive, consumer electronics, and grid-level applications.

Challenges

• Low energy density creating suitability issues: The major factor that may limit the sales of sodium-ion batteries is their lower energy density; energy density refers to the amount of energy stored per unit volume. Sodium-ion batteries have lower gravimetric energy density compared to lithium-ion batteries. Electric vehicles (EVs) require high-density batteries to achieve long driving ranges, the suitability issue is anticipated to limit the use of sodium-ion batteries in EVs to some extent. 
• The emergence of alternative high-performance materials: Prussian white and hard carbon are emerging as promising cathode and anode materials that can lead to the impressive cycling life of batteries. Long-term stability and durability of materials are essential for high-density storage systems. Thus, the rising availability of alternative high-performance materials such as Prussian white and hard carbon is expected to create challenges for sodium-based batteries.