KATHMANDU: The battery and motor have been considered the major cost components of electric vehicles. Chinese battery manufacturers have been investing in the development of sodium-ion battery technology for several years.
China’s largest battery manufacturer, CATL, has reportedly invested around USD 1.4 billion in sodium-ion battery research since 2016. After nearly a decade of development, the company has moved towards commercial production of the technology.
Commercial production of sodium-ion batteries has already started. The technology is being used in small transport vehicles and energy storage applications. CATL has also announced plans to begin large-scale production of sodium-ion batteries from the end of 2026.
According to CATL, major challenges related to sodium-ion battery technology have been addressed. The company said it has solved more than 100 technical challenges during development.
The company is still working on improving energy density, reducing production costs, and expanding large-scale manufacturing capacity.
Can it really cut EV costs?
Sodium-ion battery technology has been viewed as a possible solution to reduce electric vehicle prices. Based on current estimates, sodium-ion batteries could be 30 to 40 percent cheaper than lithium-ion batteries.
However, lower prices depend on large-scale production. At present, sodium-ion batteries are not yet fully suitable for EVs requiring long ranges of 400 to 600 kilometers.
Therefore, it may be too early to say that sodium-ion batteries will immediately reduce the price of electric SUVs. However, the technology is expected to support price reductions in small EVs.
Mass adoption in passenger EVs may still require another one to two years of further development.
