[SMM Analysis] Sodium-Ion Battery ESS Projects Flourish: What Is the Future Market Potential?

SMM March 7 News:

Amid the global energy transition, energy storage technology has become key to achieving efficient utilization of renewable energy and stable operation of power systems. Among these, sodium-ion battery energy storage projects are gradually emerging due to their unique advantages, showcasing immense development potential.

SMM has compiled recent progress in sodium-ion battery energy storage projects:

The world's first "sodium-lithium hybrid storage" power station commissioned in Ningxia: Recently, the world's first "sodium-lithium hybrid storage" power station was officially put into operation in Ningxia. This project, jointly developed by CATL and the State Grid Corporation of China, innovatively combines sodium-ion batteries with lithium batteries, reducing the cost per kilowatt-hour by 20% and increasing efficiency to 92%, providing a new feasible model for wind and solar power ESS integration.

Guizhou Dalong 20GWh Sodium-Ion Battery Production Line Construction Project (Phase I): The 2025 key private investment project list released by the Guizhou Provincial Development and Reform Commission includes 16 energy storage-related projects, such as the Guizhou Dalong 20GWh sodium-ion battery production line construction project (Phase I), with a total investment of 9.93523 billion yuan.

Megawatt-Level NFPP Sodium-Ion Battery Energy Storage System Connected to the Grid: From February 19-21, the megawatt-level NFPP sodium-ion battery energy storage system, jointly developed by Shanghai Jiao Tong University and Tangshan Sanyou Group, and completed by the Sodium Innovation Energy and BYD ESS consortium, passed the Phase I acceptance in the Nanpu Economic Development Zone of Tangshan. The Phase I 2.3MWh polyanion-type (NFPP) sodium-ion battery energy storage demonstration device has been in stable operation since its grid connection on January 12, 2025, achieving a charge-discharge efficiency of 91.36%.

Na Energy Era Headquarters and Industrialisation Base Project Commenced: During the Q1 2025 major project commencement event in Changsha Economic Development Zone, the Na Energy Era Headquarters and Industrialisation Base Project, with a total investment of 3 billion yuan, officially broke ground. Na Energy Era plans to establish a listed entity, R&D headquarters, and an industrialisation base in the Changsha Economic Development Zone, with Phase I expected to reach full production within three years. The annual output value upon reaching full production is projected to exceed 2 billion yuan.

Zigong Sodium-Ion Battery Energy Storage Project: Zigong has attracted enterprises such as Xingchu Century and Shenzhen Jianna, signing 31 sodium-ion battery energy storage projects with a total investment of approximately 40 billion yuan. These projects include existing or planned capacities of 300,000 mt of sodium-ion battery cathode materials and 100,000 mt of hard carbon anode materials. The Phase I 500kW/1MWh PV ESS integrated demonstration project by Xingchu Century has already been commissioned in Zigong.

Compared to lithium battery energy storage, sodium-ion battery energy storage can be widely applied in fields such as power station energy storage, household ESS, and industrial and commercial ESS. In extreme environments, such as the high-temperature deserts of the Middle East and extremely cold regions, the high-temperature resistance and wide temperature range characteristics of sodium-ion battery energy storage make it more advantageous than lithium batteries, better meeting local energy storage needs.

Moreover, an increasing number of enterprises are participating in sodium-ion battery energy storage projects, from material production and battery manufacturing to system integration, fostering coordinated development across the industry chain. In 2024, over 20 sodium-ion battery projects are expected to be signed, filed, or commenced, covering various segments such as battery cells and cathode and anode materials, with a total investment of nearly 40 billion yuan. Close collaboration between enterprises and research institutions is accelerating technological innovation and the transformation of achievements. The coordinated development model of the industry will drive the continuous advancement of sodium-ion battery energy storage projects, achieving technological progress and market expansion in a virtuous cycle.

SMM believes that sodium-ion battery energy storage projects are in a rapid development phase. The implementation of numerous projects and technological innovations has laid a solid foundation for their growth. This year, more demonstration sodium-ion battery energy storage projects are expected to be tendered. Driven by factors such as market demand and industry collaboration, sodium-ion battery energy storage projects are likely to occupy a significant position in the global energy storage market in the future, contributing significantly to energy transition and sustainable development.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lü 021-20707875

Yujun Liu 021-20707895