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A Matter of When, Not If: Unlocking the Market Potential of Sodium-Ion Batteries to Power a Greener Future.

Blog 08/26/2025 | Reading time: 10 MIN

In the mid-2010s, battery energy storage systems (BESS) were considered a novelty in the sustainable energy sector. However, most large-scale projects at the time struggled to take off, the availability of capital funding was subpar, and though the technology was gaining momentum, it remained underdeveloped.

Today, the outlook has changed dramatically. The widespread commercialization of artificial intelligence (AI) technology which requires substantial data centre capacity, combined with soaring energy demand and strained energy infrastructure, has sparked renewed interest in batteries for sustainable energy storage, driven by the need to meet decarbonization efforts.

However, battery energy storage, particularly lithium-based systems, account for the vast majority of demand and power large mobility applications such as electric vehicles (EVs). According to some estimates, these vehicles will account for the majority of lithium battery demand in the coming decade (Turner).

While demand for lithium-based solutions continues to steadily increase, the need for solutions using more readily available raw materials has allowed battery manufacturers to explore alternative options, such as sodium-ion batteries, that could meet commercial appetite and allow for greener, more reliable options.

What Is A Sodium-Ion Battery?

Sodium-ion batteries are composed of cathode materials that use Prussian Blue, a deep-blue pigment that is composed of complex iron cyanides.

Prussian Blue was first synthesized in 1704 as a reaction between salts of iron in an oxidation state, with potassium ferrocyanide. Modernization of oxidation processes has allowed manufacturers to leverage commercial methods that are similar, but use affordable, non-toxic sodium ferrocyanide.

How Do Sodium-Ion Batteries Work?

Sodium-ion battery chemistry, or Na-ion batteries, use sodium ions, a chemical reaction that helps to store and release an electrical charge. The system holds two electrodes – positive and negative – which are separated by an electrolyte that helps to move energy between the electrodes.

Why The Increased Interest In Sodium-Ion Batteries?

Although sodium-ion batteries have been in development for some time, there has been renewed interest of late as a viable commercial alternative to lithium-based batteries for specific use cases requiring stable operations and minimal risk such as data centers, mining, and military energy storage systems.

This is largely because sodium-ion batteries do not experience the same challenges with thermal runaway as lithium batteries do, making them more suitable for business-critical environments.

While the performance and output are comparable to those of lithium-based batteries, the case for these sodium-based storage systems becomes more relevant when we explore several key factors:

Availability of critical minerals, which are largely produced in China
Increased need for local supply chains amidst global political uncertainty
Time and cost of building out new lithium processing facilities
Decarbonization needs

The sodium-ion battery market is expected to reach a market size value of more than $896 million by 2030, representing a steady increase from $324.84 million in 2023 (Yahoo Finance).

However, understanding how market interest in lithium-based products could change in the coming years could help further support the near-term viability of sodium-ion batteries.

Supply Chain Control

For starters, countries across the world are looking to build more inwardly focused economic value chains by onshoring manufacturing of certain components and reducing the reliance on imports of raw materials, such as lithium.

Currently, around 53% of the world’s lithium resources are produced in three South American countries, Argentina, Bolivia, and Chile (Bradley, Dwight C., et al).

“Governments are looking to have improved control over their battery supply chain, a trend that we’ve been seeing across the world,” says Jackson Briggs, Strategy and Business Development Manager for Draslovka.

In recent years, Draslovka has been building out its capacity to produce the materials used in sodium-ion batteries, mainly Prussian Blue, at its plant in Kolín, in the Czech Republic. Efforts to expand capacity at other sites in Memphis, Tennessee, will take priority in the future.

On-Shoring of Manufacturing

Currently, the battery market is dominated by lithium-ion batteries, with total market value expected to grow from $64.0 billion in 2025 to more than $204.4 billion by 2032, according to recent market insights from Persistence Market Research.

In this context, it’s important to consider that the majority of the supply chain for processing and manufacturing lithium-ion batteries is in China. The country also controls 25% of the world’s lithium mining capacity (EIA).

Elsewhere, Chile holds the world’s largest lithium reserves base of 9.3 million tons, according to a 2023 paper published by the U.S. Geological Survey. Combined, China and Chile hold a substantial market share in lithium production and processing – posing significant concerns on the resilience of the lithium supply chain. Although lithium prices are currently favourable, they are not guaranteed to remain that way.

“With the amount of time and resources it takes to build out new mines and processing facilities, many would instead turn to a technology that uses an abundantly available raw material that’s easier to handle, such as sodium,” shared Jackson. According to Benchmark Minerals, the elemental concentration in the upper continental crust for Sodium is 25,670 ppm compared to just 22ppm for lithium.

Decarbonization

Though lithium-ion batteries currently hold the advantage of being more energy dense - meaning they can store more energy pound for pound - mining and processing activities create some sustainability drawbacks for lithium-based systems.

In 2020, the Institute for Energy Research published a working paper on the environmental impact lithium-ion battery manufacturing has on local ecosystems and communities.

For one, their research found that lithium extraction uses approximately 500,000 gallons of water per ton of lithium. Furthermore, researchers found that lithium, which is mined from rock, such as in the case in Australia and North America, uses a mixture of harmful chemicals, and can impact downstream water channels as far as 150 miles from lithium processing operations (Institute of Energy Research).

Outside of the environmental harm that comes with lithium operations, thermal runaway, a reaction where the lithium batteries spontaneously combust, can cause bigger issues for communities and consumers who are exposed to these effects.

Technological Innovation

Currently, nearly half of the world’s digital applications, from mobile devices to EVs and computers, are powered by lithium-ion batteries. However, in recent years, more resources have been made available to better understand the near and long-term viability of sodium-ion batteries.

Draslovka believes that leveraging the different strengths that we already have and partnering with the right manufacturers could help spearhead sodium-ion into the spotlight. “Our partnership with Natron Energy, along with other players in this space, has helped us to closely collaborate and accelerate the introduction of new technologies,” said Jackson.

Natron Energy, a California-based battery manufacturer, is set to produce up to 24 gigawatt hours of sodium-ion batteries annually, which will be enough to charge roughly 24,000 electric vehicles, according to a recent article published in November 2024 (Farrell). This new milestone will potentially help further sodium-ion battery development in places such as the U.S.

As Jackson explains, “Sodium-ion technology holds several key technical advantages over lithium-ion; however, building out the battery production capabilities is resource-intensive, requires producers and manufacturers to align their timing and scale to build out the future supply chain.”

Signs of Increasing Demand

Faced with the imperatives, investment in sodium-ion continues to experience a steadily unfolding amount of support from private and public players.

Big Player Investments

In April this year, Contemporary Amperex Technology Co., Limited (CATL), a Chinese-based battery manufacturer, announced the release of a dual chemistry system that would see the production of the world’s first mass-produced sodium-ion battery. More than this, CATL launched three new EV battery products, all of which will be operated on a multi-power system (CATL).

Currently, CATL is the world’s largest and most dominant manufacturer of battery storage systems, and is worth 38% of the global market share, according to news coverage published in June 2025 (Marino).

Demand for Quality

Elsewhere, demand for high-grade sodium cyanide remains a major catalyst for many in the mining and battery manufacturing markets. “We’ve continued to see a steady demand for sodium cyanide from our key markets, and in the overall material space,” shared Jackson.

Access to a high-grade, quality product could mean that battery manufacturers turn instead to producers such as Draslovka, known for their high-purity HCN derivatives. Draslovka has been operating in this space for more than a century and holds a collective 200+ years of cyanide manufacturing expertise. 

Supply Chain Diversification

In more recent years, many manufacturers have looked towards diversifying their supply chains, reducing reliance on a single source, and instead creating more robust availability of raw materials to align with their long-term output. 

“By applying what we know, and cross-collaborating with the right manufacturers, we can better align ourselves with how the market is growing, where demand may be coming from in the next five to ten years, and place ourselves in key markets ahead of the curve. We expect an increase in demand for high-purity CN products in several key regions, and we are preparing to expand our operations accordingly, shared Jackson.

Price Volatility

Lithium’s high price volatility in more recent times has seen manufacturers pour more resources into onboarding sodium-ion capacity. Prices of lithium have increased by triple digits between 2020 and 2022, but have since stabilized (GEP).

Despite the price moderation, production costs have remained at elevated levels, with manufacturers often passing those costs onto consumers. Sodium-ion battery cost has remained moderately stable over the last several years.

Major price swings are only part of the larger picture. Analysts believe that the limited availability of lithium, outside of major producing and processing regions, could further bolster lithium prices as demand continues to grow, and the acceleration of AI-powered systems becomes widespread.

What’s Next For Sodium-Ion?

The market seems to be heating up. Big contenders are ramping up their investment in chemistry and technology used in sodium-ion batteries, and while other players are securing deals with suppliers and producers to minimize supply chain challenges, they are offsetting the possibility of heavy price fluctuations.

More than this, factors such as decarbonization efforts and better support from private and public enterprises have seen manufacturers looking for solutions closer to home, while reducing over-reliance on foreign trade partners.

Outside of the environmental, political, and social sphere of influence, there’s a clear build-up to the battery industry making a switch, and although they won’t fully abandon lithium-ion, we can expect to see a healthy mix of both – lithium and sodium-ion – in the next five to ten years on the market. This begs the question, is sodium-ion battery the future?

“It’s not a matter of if, but rather when. Sodium-ion batteries are an important technology for the world, and it’s exciting for Draslovka to be part of this momentum, as we seek sustainable solutions for the future’s energy challenges,” said Jackson. 

Sources:

Turner, Julian. "Are Sodium-ion Batteries Worth Their Salt?" Yahoo Finance, 17 Sept. 2024, finance.yahoo.com/news/sodium-ion-batteries-worth-salt-103309011.html. Accessed 8 Aug. 2025.
"Prussian Blue." Britannica, 15 Aug. 2025, www.britannica.com/technology/Prussian-blue. Accessed 8 Aug. 2025.
"Sodium-Ion Battery Market Projected to Reach USD 896.14 Million by 2030, Growing at a CAGR of 15.6% during the Forecast Period of 2023-2030 - Claims by MarketDigits in Its Recent Study." Yahoo Finance, 29 Nov. 2023, finance.yahoo.com/news/sodium-ion-battery-market-projected-160000652.html. Accessed 8 Aug. 2025.
Bradley, Dwight C., et al. Lithium. Chapter K of Critical Mineral Resources of the United States—Economic and Environmental Geology and Prospects for Future Supply, edited by Klaus J. Schulz et al., U.S. Geological Survey, Professional Paper 1802, 2017, pp. K1–K21. https://doi.org/10.3133/pp1802K[1] (https://pubs.usgs.gov/publication/pp1802K). Accessed 8 Aug. 2025.
"China Dominates Global Trade of Battery Minerals." U.S. Energy Information Administration, 21 May 2025, www.eia.gov/todayinenergy/detail.php?id=65305#. Accessed 8 Aug. 2025.
"The Environmental Impact of Lithium Batteries." Institute of Energy Research, 12 Nov. 2020, www.instituteforenergyresearch.org/renewable/the-environmental-impact-of-lithium-batteries/. Accessed 8 Aug. 2025.
Farrell, Nick. "Natron Building a Sodium-ion Batteries Gigaplant." Fudzilla, 11 Nov. 2024, www.fudzilla.com/news/60050-natron-building-a-sodium-ion-batteries-gigaplant. Accessed 8 Aug. 2025.
Zope, Rajat. "Lithium-ion Battery Market Size, Share and Growth Forecast for 2025-2032." Persistence Market Research, 21 Jan. 2025, www.persistencemarketresearch.com/market-research/lithium-ion-battery-market.asp. Accessed 8 Aug. 2025.
"Naxtra Battery Breakthrough & Dual-Power Architecture: CATL Pioneers the Multi-Power Era." CATL, 21 Apr. 2025, www.catl.com/en/news/6401.html. Accessed 8 Aug. 2025.
Marino, Giorgio. "CATL, All You Need to Know about the Chinese Battery Giant Making Its Stock Market Debut." Renewable Matter, 8 Jun. 2025, www.renewablematter.eu/en/catl-all-you-need-to-know-about-the-chinese-battery-giant-making-its-stock-market-debut. Accessed 8 Aug. 2025.
"Sodium-ion Vs. Lithium-ion Battery: Which Is a Better Alternative?" GEP, 2 Jul. 2025, www.renewablematter.eu/en/catl-all-you-need-to-know-about-the-chinese-battery-giant-making-its-stock-market-debut. Accessed 8 Aug. 2025.