[SMM Analysis] Sodium-ion battery industry accelerates forward in June, with layout and breakthroughs interweaving to create a new industry landscape

SMM News on June 5:

Amidst the powerful wave of global energy transition, sodium-ion batteries (sodium batteries) are gradually emerging as a shining new star in the new energy sector, thanks to their unique advantages such as abundant resource reserves, low cost, and excellent low-temperature performance. In June 2025, the sodium battery industry has been buzzing with good news, with enterprises going into production, launching new products, achieving technological breakthroughs, and expanding into new markets, all contributing to a vibrant new industry landscape.

Major projects take root, advancing the scaling-up process

On June 12, Paragonage's first flexible mass production line for sodium-ion batteries in China was officially launched in the Xishan Economic and Technological Development Zone, Wuxi City. This landmark event has accelerated the scaling-up of sodium battery production. The production line focuses on the development and application of 32140 cylindrical sodium-ion battery cells and pouch cells, utilizing advanced flexible manufacturing technology and high-speed production lines. The application of flexible manufacturing technology enables the production line to quickly respond to changes in market demand, achieving flexible production of battery cells of different specifications and types, greatly enhancing production efficiency and product adaptability.

On the same day, the 2024 First China Sodium Battery Light Power and Electricity Energy Storage Conference - Baoying "Green Mountains and Clear Waters, Sodium Empowering Dual Carbon" New Energy Industry City Promotion Conference and the Opening Ceremony of China Sodium Energy were successfully held in Baoying County, Yangzhou City, Jiangsu Province. At the event, China Sodium Energy (Yangzhou) Co., Ltd. officially launched the Phase II 4GWh sodium battery project, which will mainly produce 32140 full-tab large cylindrical sodium battery products. The full-tab design effectively reduces the battery's internal resistance, improving charge and discharge performance, and has broad application prospects in both energy storage and power applications.

On June 17, the construction of the high C-rate polyanion sodium-ion energy storage battery anode and cathode material industrialization project of Weinan Bona New Energy Technology Co., Ltd. commenced. The project, with a total planned investment of 1.1 billion yuan, will be built in two phases, further improving the upstream layout of the sodium battery industry chain.

Cathode material growth robust, NFPP stands out

From the material side, sodium battery cathode material production in June showed robust growth, continuing to increase by 8% MoM and surging by 106% YoY. Among them, the polyanion NFPP material performed particularly well, accounting for 67% of the total production, far exceeding layered oxide O3, P2, and Prussian blue systems. The NFPP material, with its excellent cycle stability and high-power performance, is widely used in start-stop and electric two-wheeler applications. However, its mass production capacity is currently concentrated in the hands of a few enterprises. With the continuous growth of market demand in H2, an undersupply situation may arise. It is worth noting that NFPP is currently in a critical stage of mass production cost reduction. With the continuous maturation of technology and the advancement of scaled-up production, there is still significant room for price reduction in the later stage. SMM forecasts sodium-ion battery cathode production in July will continue to rise 13% MoM, surging 140% YoY.

Anode Material Capacity Expansion Faces Cost Challenges

For sodium-ion battery anode materials, despite capacity increases, multiple challenges remain. In June, anode material production grew 22% MoM and 204% YoY, with most large orders for hard carbon anode being five-year forward intent agreements. However, constrained by existing capacity and high procurement costs of biomass coconut shell carbon, significant production breakthroughs are unlikely in the short term. July output is expected to increase only 5% MoM and 160% YoY.

Electrolyte Production Rises as Cost Reduction Accelerates

In the electrolyte sector, sodium-ion battery electrolyte production rose 22% MoM and 105% YoY in June. The production model remains primarily sales-based with high customization. Growing market demand for NFPP materials has increased electrolyte requirements, accelerating mass production of electrolytes, electrolytes, and additives, thereby reducing costs and enhancing market competitiveness.

Battery Cell Segment Shows Robust Demand with Clear Capacity Expansion Trend

For battery cells, despite a 6% MoM decline in June, sodium-ion battery cell production still increased 108% YoY. Some enterprises have signed H2 ESS intent cooperation orders, while backup power fields also demonstrate strong demand. In 2025, numerous sodium-ion battery cell manufacturers are actively transitioning from layered oxide to polyanion systems. Both traditional lithium battery companies and sodium-ion battery startups are accelerating capacity expansion and stockpiling. Cell production is expected to maintain upward momentum in coming months, accelerating commercialization of sodium-ion batteries in ESS, start-stop, and two- and three-wheeler applications.

The sodium-ion battery industry achieved significant progress in production layout, R&D, and market expansion in June 2025. Collaborative development across the supply chain from materials to cells has laid a solid foundation for industry growth. Although challenges persist in anode material cost control, continuous technological breakthroughs and expanding industrial scale will likely elevate sodium-ion batteries' position in the new energy sector, contributing substantially to global energy transition and carbon neutrality goals.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lü 021-20707875