Lithium-ion Battery vs. Sodium-ion: Which is a Better Alternative?

Sustainability and supply chain resilience are becoming key priorities for procurement professionals, especially in industries reliant on advanced energy storage technologies. The rapid adoption of renewable energy and electric vehicles has driven skyrocketing demand for batteries, making the choice of battery technology a critical consideration not only for manufacturers but also for procurement teams aiming to source sustainable and cost-effective solutions.

Among the leading technologies, lithium-ion batteries dominate the market today, but sodium-ion batteries are emerging as a promising alternative. Understanding the differences between these technologies is vital for procurement strategies focused on sustainability, cost management, and supply chain diversification.

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• Sodium is more than 500 times more abundant than lithium, which is available in a few countries.
• Sodium-ion battery charges faster than lithium-ion variants and have a three times higher lifecycle.
• However, sodium-ion batteries lack of a well-established raw material supply chain and the technology is still in early stages of development.

Lithium is the most common element in battery manufacturing, with China controlling the global lithium-ion battery supply chain (79% of all lithium-ion batteries). China also controls 61% of global lithium refining capacity used for battery storage and electric cars.

The next big supplier is Argentina, accounting for 21% of global deposits, giving it tremendous power in raw material mining and to influence the lithium supply chain, with 13 proposed projects and dozens more in the works.

Lithium-ion batteries are made of scarce and pricey elements such as cobalt and lithium. Lithium prices have increased by more than 700% since 2021 amid rising demand for batteries. Lithium-based batteries would likewise have difficulty meeting the increasing demand for power grid energy storage. Technology companies are looking for alternatives to replace traditional lithium-ion batteries.

Sodium-ion vs. Lithium-ion Battery Technology

Sodium-ion batteries are a promising alternative to lithium-ion batteries — currently the most widely used type of rechargeable battery. Both types of batteries use a liquid electrolyte to store and transfer electrical energy, but differ in the type of ions they use.

An examination of Lithium-ion (Li-ion) and sodium-ion (Na-ion) battery components reveals that the nature of the cathode material is the main difference between the two batteries. Because the preparation cost of the cathode from raw materials is the same for both types of battery technologies, the main cost reduction for sodium-ion batteries comes from raw materials.

 

Sodium-ion Battery	Lithium-ion Battery
Lithium availability is limited to a few countries, which is why prices have risen more than seven-fold since 2021.	Sodium is more than 500 times more abundant than lithium. It can also be extracted from seawater at a low cost.
Lithium is less environmentally friendly than sodium and must always be stored with a minimum charge, increasing fire risks.	Sodium is more environmentally friendly and can be transported at zero volt, making it safer.
Lithium-ion battery uses copper, which is three or four times more expensive than aluminum used on sodium batteries.	A Sodium-ion battery uses aluminium which is cheaper than copper.
Lithium-ion battery has lower operating temperature range and can cause fire if operated in higher temperatures.	Sodium-ion battery has a higher operating temperature range. This means these can be used in more extreme temperatures without the risk of thermal runaway.
Lithium-ion battery has a slow charge rate and smaller lifecycle compared to sodium-based batteries.	Sodium-ion battery charges faster than lithium-ion variants and has a three times higher lifecycle.

Due to the multiple advantages of sodium-ion batteries, large players in the energy industry are investing in acquiring and developing this technology. For example, Faradion, a battery technology company in the UK and an innovator in Na-ion battery, was recently acquired by Reliance New Energy Solar, a subsidiary of Reliance Industries, for $135 million.

Challenges for Sodium-ion Battery

Despite the advantages, sodium ion battery manufacturing needs to overcome several challenges before it can be widely adopted as a replacement for lithium-ion batteries.

• Lack of a well-established supply chain for the materials used in the batteries.
• Since the technology is still in its infancy, very few companies operate in this segment, leading to higher cost of batteries.
• The technology to make sodium-ion batteries is still in the early stages of development.
• Sodium-ion based batteries have limitations of flexibility as they cannot be turned into various shapes like prismatic, cylindrical etc.
• These are less dense and have less storage capacity compared to lithium-based batteries.
• Existing sodium-ion batteries have a cycle life of 5,000 times, significantly lower than the cycle life of commercial lithium iron phosphate batteries, which is 8,000-10,000 times.

Can Sodium-based Batteries Replace Lithium-ion Batteries?

While there are many potential advantages to using sodium-ion batteries over lithium-ion batteries, there are also several challenges that need to be overcome before they can be widely adopted as a replacement.

If sodium-ion batteries are to become the backbone of the energy storage industry, they must continue to improve their technical performance. Researchers are working to improve the performance and stability of the batteries, as well as to reduce their cost, while companies are looking to establish a supply chain for the materials used in the batteries.