CATL's ‘salt battery': Cheaper EVs or chemistry compromise?
CATL, the Chinese battery behemoth, is poised to shake up the electric vehicle landscape with sodium-ion batteries, or 'salt batteries,' with mass production for mainstream EVs scheduled within this year.
These cells are expected to offer an even greater cost advantage over CATL's current lithium iron phosphate offerings, further pressuring South Korean battery rivals already struggling to challenge China's dominance in the electrified vehicle sector.
Contrary to projections from Korean companies, which had anticipated CATL's sodium-ion cells would be better suited for energy storage systems, CATL plans to launch its 'Naxtra' battery for passenger vehicles by December. The battery reportedly offers an energy density of 175 watt-hours per kilogram and a range of 500 kilometers on a single charge.
A key marketing highlight is the battery's exceptional performance in cold weather, surpassing that of existing lithium-ion technologies, including Korea's nickel cobalt manganese products and the LFP cells whose production is dominated by China.
Cheaper than LFP, easier to produce
CATL's sodium-ion battery launch presents an unwelcome challenge for Korean battery manufacturers, who have yet to begin mass production of LFP cells for EVs.
Addressing China's sodium battery innovation, SK On CEO and President Lee Seok-hee reportedly said in a recent closed-door meeting, 'We need to closely monitor technological trends in sodium-ion cells for the budget-friendly EV market.'
The nickname is misleading: Sodium batteries don't actually have salt in them. But one of their biggest advantages is their lower cost and more readily available raw materials compared to lithium-ion cells. According to data from Shanghai Metals Market, battery-grade sodium carbonate was priced at $598.18 per ton as of Tuesday, while lithium carbonate cost $9,612.58 per ton.
'Sodium-ion batteries could become significantly cheaper than LFP — possibly half the cost — once production is optimized,' said a senior researcher at a major Korean battery company. 'Unlike lithium, which shows drastic price fluctuations due to limited reserves, sodium can be easily sourced from sodium chloride or sodium hydroxide, both widely available in seawater.'
The researcher added that the manufacturing process for sodium-ion and lithium-ion cells is largely 'exchangeable,' potentially lowering equipment costs for the new battery chemistry.
The simplicity of the production process is another reason sodium-ion batteries are advancing more rapidly toward commercialization than other next-generation technologies, such as lithium-metal batteries, which are currently being pursued by a joint partnership between Hyundai Motor Group and SES AI.
'The electrode slurry used in salt batteries is usually softer and stickier than in lithium-metal cells. This allows for more uniform coating on current collectors such as aluminum foils,' noted the researcher. 'In contrast, lithium-metal batteries often face challenges like dendrite formation, which can lead to battery fires.'
Premature hype?
Despite the promising innovation, industry insiders remain skeptical about sodium-ion batteries replacing LFP or NCM cells due to their inherently lower energy density.
Last month, CATL began mass production of a 24V start-stop integrated sodium-ion battery for heavy-duty trucks. However, as the name suggests, it is primarily designed to start engines or power auxiliary systems in internal combustion engine vehicles, not to drive fully electric heavy trucks, which require high-voltage packs.
'Due to its larger ionic radius and a relatively low average operating voltage of around 3.2 volts per cell, sodium-ion lags in energy density compared to lithium-ion,' said an industry source who requested anonymity. 'CATL's 150-175Wh/kg energy density is significantly lower than NCM's approximately 500Wh/kg. Not to mention its disadvantage to maintain stable performance in high-voltage conditions of over 4.2V.'
Batteries with low energy density are typically used in budget EVs rather than in electric SUVs or high-performance models that require longer ranges and higher power. Although CATL claims a 500 km range and stable performance in cold weather, such batteries are likely to experience greater real-world range drops than those with higher energy density.
'Sodium-ion batteries offer commercial viability in cost-sensitive segments, but replacing lithium-ion cells remains a challenge,' the source added.
The senior researcher agreed, noting, 'Our company views salt batteries as one of many next-generation battery technologies. We don't necessarily see them as direct replacements for LFP or NCM.'
Among Korean battery makers, only LG Energy Solution is aiming for sodium-ion battery commercialization for uninterruptible power supplies and EVs by 2030. Samsung SDI and SK On are still exploring potential development paths.
Meanwhile, Fortune Business Insights projects the global sodium-ion battery market will grow from $18.2 billion in 2025 to $203.2 billion by 2032, reflecting more than tenfold growth over the period.
hyejin2@heraldcorp.com
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