Sodium-Ion Battery Cathode Competition and Cooperation New Situation: New Forces "Win by Speed", Lithium Battery Giants "Enter by Volume" [SMM Analysis]

Published: Aug 26, 2026 16:46

Save

[SMM analysis: New landscape of sodium-ion battery cathode coopetition: new forces "win by speed", lithium battery giants "enter with scale"] SMM reported on August 26: As NFPP 10kt-level production lines are successively put into operation and sodium-ion battery cathodes enter the scaling-up fulfillment period, the structure of industry participants is becoming increasingly clear: on one end are startup sodium-ion battery enterprises with mature R&D and flexible mechanisms; on the other end are lithium battery cathode giants entering the field with capacity and brand. These two categories of players engage in coopetition on the same track, and their differentiated characteristics will profoundly impact the competitive landscape and cost-reduction pace of sodium-ion battery cathodes...

SMM August 26 News:

With the successive commissioning of NFPP 10kt-level production lines and sodium-ion battery cathodes entering the scale-up delivery phase, the landscape of industry participants is becoming increasingly clear: on one side are startup sodium-ion battery enterprises with mature R&D and flexible mechanisms, and on the other side are major lithium battery cathode players entering with capacity and brand endorsement. These two types of entities compete and cooperate on the same track, and their differentiated characteristics will profoundly influence the competitive landscape and cost-reduction pace of sodium-ion battery cathodes.

I. Logic of Entry for Two Types of Entities

Currently, new sodium-ion battery forces have completed construction or commenced production of 10kt-level production lines, while major lithium battery cathode players have completed technical reserves and accelerated their entry. The two types of entities are gradually shifting from "offset competition" to "head-on confrontation."

II. Startup Enterprises: Mature R&D, Flexible Mechanisms

The core advantages of startup sodium-ion battery enterprises are mainly reflected in three aspects.

First, mature R&D. New sodium-ion battery forces often originate from university research teams or industry veterans, with high technical starting points and focused roadmaps. They are jointly initiated by leading scholars in the electrochemistry field, and their product performance is at the industry's leading level. Their "lightweight" technical organizational form enables R&D iteration speeds significantly faster than those of major players.

Second, flexibility and short decision-making chains. Startup enterprises have flat organizational structures, allowing quick decisions on R&D project initiation, production line adjustments, and business decisions. They can optimize formulas and processes based on client feedback in a timely manner, demonstrating clear efficiency advantages in sample delivery verification, customized development, and other stages, aligning with the early-stage characteristics of sodium-ion batteries: "small batches, multiple varieties, fast iteration."

Third, significant room for price adjustments. To capture limited client resources and order shares, startup enterprises are willing to adopt more aggressive pricing, using volume discounts to quickly scale up. According to SMM, some new force enterprises offer highly competitive quotes during the capacity ramp-up phase to secure initial energy storage clients.

However, the shortcomings of startup enterprises are equally prominent: limited financial resources, capacity expansion reliant on external financing, and weak risk resistance. Once the industry enters a price war or downstream demand fluctuates, their cash flow pressure will appear first.

III. Major Lithium Battery Cathode Players: Capacity Expansion and Brand Endorsement

Compared to startup enterprises, the advantages of major lithium battery cathode players entering sodium-ion batteries are concentrated in two aspects: capacity and brand.

On one hand, they have the ability to rapidly expand capacity. Major players possess mature production line construction experience, supply chain systems, and financial strength. The LFP production line shares process similarities with sodium-ion polyanion technologies, and equipment is largely interchangeable, enabling rapid modification and replication of production lines. The speed of commissioning 10kt-level capacity far exceeds that of startup enterprises.

On the other hand, the brand endorsement effect is significant. Leading cathode enterprises have accumulated deep client trust and quality management systems in the lithium battery field. Their sodium-ion battery products naturally enjoy a trust premium during certification by downstream battery manufacturers, with low channel reuse and client acquisition costs, making it easier to secure bulk orders from leading energy storage clients.

In addition, large manufacturers have stronger risk resistance. The cash flow from their main lithium battery business can "transfuse" their sodium-ion battery operations, enabling them to expand countercyclically during industry downturns, buying time for future growth.

IV. Coopetition Landscape and Market Outlook

SMM believes that in the early commercialization stage, startups seize the first-mover advantage with mature R&D and flexible decision-making, racing to capture the client validation window. As the market size expands, large manufacturers' capacity expansion and brand advantages will be gradually released.

Meanwhile, the coopetition relationship between the two types of players will also deepen. Large manufacturers may integrate the technical teams of new forces through toll processing, mergers and acquisitions, while new forces may leverage large manufacturers' supply chains to reduce costs. Ultimately, entities with multiple endowments of "technology + capacity + capital" will prevail in long-term competition.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lyu Yanlin 021-20707875

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

Images in this article contain AI-translated captions for reference only.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

[SMM Cobalt-Lithium Morning Meeting Minutes] Raw Materials Consolidate at Highs with Divergence; Expectations for the Materials Peak Season Gradually Heat Up

This week, the industry chain as a whole exhibited an operating pattern of “upstream consolidation, divergent performance in materials, and improving demand expectations.” Lithium ore prices continued to consolidate at highs, with miners still holding prices firm, but smelting margins were squeezed, and salt producers’ procurement gradually returned to rigid demand; lithium carbonate pulled back after shooting up, with supply growth driven by salt lake production resumptions, while downstream stockpiling on dips provided support for prices. The cobalt market was generally weak, with a wide price spread between buying and selling prices for intermediate products; cobalt sulphate and cobalt powder prices remained under pressure, and actual transactions were still sluggish. Materials showed divergent performance: ternary cathode material prices weakened as raw materials pulled back, while LFP continued to rise on higher costs and robust orders, with industry supply still tight. Anode prices held steady, separators stayed rangebound, and electrolyte costs moved higher, driven by price increases in LiPF6, additives, and solvents. As the “September-October peak season” approaches, stockpiling and production schedule expectations improved in certain segments, but the market still needs to watch raw material price fluctuations, capacity releases, and the fulfilment of end-user orders.

11 hours ago

[SMM Cobalt Morning Meeting Minutes] Cobalt Industry Chain Prices Under Pressure in the Peak Season; Signals of a Demand Recovery Still Pending Confirmation

This week, the cobalt industry chain as a whole remained in the doldrums, with prices of some products continuing to edge lower. Refined cobalt was supported by overseas miners’ purchases of low-priced intermediate products; futures stopped falling and rebounded, but downstream consumption was still in the off-season, and spot transactions saw only limited improvement. Divergence between buyers and sellers of cobalt intermediate products was pronounced, with downstream purchasing interest clearly shifting lower; the average SMM cobalt intermediate product price fell to $19/lb. Cobalt sulphate was affected by low-priced deals outside China and weakening cost support, with the average price dropping to 71,000 yuan/mt; cobalt chloride and Co3O4 were broadly in the doldrums. The cobalt powder market continued to grind lower, with the average price falling to 420,000 yuan/mt, as downstream demand from the cemented carbide sector remained weak. On the cathode material side, ternary cathode precursor and ternary cathode material prices were under pressure; export orders were relatively better, but growth in China demand was limited. LCO supply and demand remained weak, and inventory destocking was slow. With the traditional peak season approaching, the market focused on whether stockpiling in September could drive a recovery in demand; in the short term, price stabilization still needed to wait for signals of concentrated procurement. The English translation of the above text is:

11 hours ago

Aug 26, 2026 16:09

Sodium-Ion Battery NFPP Cathode Technology Route Deep Competition: Precursor Method "Winning by Quality", Iron Phosphate Method "Cost Determined by Volume" [SMM Analysis]

[SMM analysis: Deep Competition in Sodium-Ion Battery NFPP Cathode Technology Routes: Precursor Method 'Wins by Quality', Iron Phosphate Method 'Wins by Quantity'] SMM, August 26 news: With the accelerated penetration of sodium-ion batteries in energy storage scenarios, composite sodium iron phosphate (NFPP, Na₄Fe₃(PO₄)₂P₂O₇), leveraging its inherent safety, ultra-long cycle life, and resource endowment advantages, has firmly secured the leading position among polyanion cathodes. However, in the process of industrialisation, the two mainstream production routes—the precursor method and the iron phosphate method—are engaged in a long-term game centered on 'performance priority' and 'cost priority'. According to SMM survey, the two routes show significant differences in compaction density, cost structure, and supply chain maturity, and their competitive trajectory will profoundly impact the pace of cost reduction and capacity pattern of sodium-ion battery cathodes..

Aug 26, 2026 16:09