The electric vehicle (EV) landscape is bracing for a potential shake-up as Chinese battery behemoth Contemporary Amperex Technology (CATL) has announced its foray into sodium-ion battery production. The world's leading EV battery manufacturer revealed its new sodium-ion technology under the brand name Naxtra.

According to reports out of a press conference in Shanghai on Monday, April 21, CATL's Chief Marketing Officer, Luo Jian, stated that mass production of these innovative batteries is slated to commence by the end of the year, with initial rollout beginning in June. This development positions CATL, a crucial supplier for major automotive players like Tesla, Mercedes-Benz, Volkswagen, and BMW, at the forefront of a potential paradigm shift in energy storage for EVs. Notably, CATL batteries currently power over 18.32 million vehicles across more than 66 countries.

Sodium-ion batteries have long been touted as a promising and safer alternative to lithium-ion technology, primarily due to the greater abundance and lower cost potential of sodium. While lithium-ion batteries carry a risk of fire when damaged, sodium-ion counterparts offer a more stable and secure energy storage solution.

The initial phase of Naxtra battery production will focus on smaller units intended as starter batteries for heavy-duty vehicles. However, CATL has ambitious plans to scale up production of larger sodium-ion batteries by December, targeting integration into both fully electric and hybrid passenger cars. The company claims that the Naxtra battery line is expected to deliver an impressive driving range of 500 kilometers (approximately 310 miles) on a single charge.

While CATL has revealed a significant energy storage density of 175 Wh/kg for its new sodium-ion battery – a figure comparable to the 185 Wh/kg of lithium iron phosphate (LFP) batteries commonly used in EVs – the company has remained tight-lipped about the anticipated cost and its production capacity.

Nevertheless, CATL’s CEO, Robin Zeng, has expressed considerable confidence in the potential of this new technology, stating his expectation that sodium-ion batteries will eventually displace half of the lithium, iron, and phosphate batteries currently in the market.

One particularly noteworthy advantage of CATL’s sodium-ion battery is its expected superior performance in cold weather conditions. Existing batteries often suffer from sluggishness or even failure in low temperatures, a challenge that the new sodium-ion technology aims to overcome, potentially making it a significant selling point in colder climates.

Despite these advancements, CATL faces potential headwinds in the form of significant tariffs imposed by the US on goods imported from China. These tariffs could inflate the cost of crucial battery components, potentially impacting the overall price competitiveness of EVs in the American market.