April 21, 2025 – Shanghai: Chinese battery powerhouse Contemporary Amperex Technology Co. Limited (CATL) unveiled a new sodium-ion battery under the brand ‘Naxtra’ on Monday during its Tech Day event. This marks a significant advancement in battery technology, offering a safer and more cost-effective alternative to traditional lithium-ion batteries.
CATL, the world’s largest battery manufacturer, announced that Naxtra will restructure the electric car industry. The battery is already ready for commercialization and is expected to enter mass production by December 2025.
In 2021, CATL became the first leading automotive battery manufacturer to introduce a sodium-ion battery. Experts have stated that Sodium, unlike other battery materials, is cheap and abundant, and its chemistry could help reduce fire risks in EVs.
The Naxtra battery boasts an energy density of 175 Wh/kg, nearly equivalent to lithium iron phosphate (LFP) batteries often used in grid energy storage systems and electric vehicles. It is capable of delivering up to 500 km of range for electric vehicles.
In addition to Naxtra battery, CATL also introduced the second-generation of the company’s Shenxing fast-charging battery. The company stated that the new second-generation battery can enable a 529 km driving range with a five-minute charge. These innovations highlight CATL’s commitment to diversifying battery technologies and addressing the challenges of EV adoption, such as battery safety and charging times.
Sodium-ion batteries offer a cost advantage when compared to lithium-ion batteries. As a result, their adoption is expected to increase rapidly in the coming years. Robin Zeng, founder of CATL, stated, “We see sodium-ion batteries potentially replacing up to half the market for lithium iron phosphate batteries that CATL now dominates.”
According to Coherent Market Insights (CMI), the global sodium-ion battery market is poised to exhibit a CAGR of 14% during the assessment period, totaling US$ 55.26 billion in 2032. Rising popularity of electric vehicles and growing demand for cost-effective storage solutions, such as CATL’s Naxtra, will likely shape this growth.
“Electric vehicle manufacturers are facing rising lithium costs and safety concerns. This is pushing them towards sodium-ion technology as a compelling alternative to lithium-ion batteries,” says a senior analyst at CMI. “We expect demand for sodium-ion batteries to rise rapidly in the coming years as manufacturers prioritize affordability and safety.”
Sodium-ion batteries have the tendency to become mainstream in the blooming electric vehicle industry. They are viewed as cheaper and safer alternatives to lithium-ion batteries, which find application in electronics and electric vehicles.
CATL’s new launch will set a perfect tone for the growth of the sodium-ion battery market over the forecast period. The company produces more than a third of all EV batteries sold worldwide. It works with big brands like BMW, Tesla, and Volkswagen. Courtesy of this, it will play a key role in bringing the sodium-ion battery revolution to the target industry.
Being a leading global battery manufacturer, CATL’s move will bring greater credibility to the sodium-ion battery market, encouraging other battery manufacturers to explore sodium-ion technology or adopt this technology. This can intensify the market competition as well as boost its growth during the forthcoming period.
Sources:
News Outlet: Reuters
News Channel: France 24
