7 automakers betting big on sodium-ion batteries for budget EVs

Several automakers in China and Europe are increasingly adopting sodium-ion battery technology for budget electric vehicles (EVs), particularly city cars, minicars, and fleet vehicles. This shift marks sodium-ion batteries’ transition from experimental stages to practical, mass-market solutions. While lithium-ion batteries remain dominant, sodium-ion chemistry is gaining traction due to its cost advantages, as sodium is more abundant and less expensive than lithium, cobalt, or nickel. Sodium-ion battery packs are estimated to be 20-40% cheaper than lithium iron phosphate batteries at scale, though they have lower energy density, making them better suited for compact and urban vehicles rather than long-range SUVs. Additionally, sodium-ion batteries perform well in low temperatures and offer strong safety features, enhancing their appeal for entry-level EVs and urban fleets. Key players investing in sodium-ion technology include BYD, which plans to offer both sodium-ion and lithium iron phosphate versions of its Seagull micro-hatchback to maintain affordability amid lithium price fluctuations. CATL