How do sodium ion batteries compare to LFP?

Demand for both lithium iron phosphate (LFP) and sodium ion batteries is forecast to surge as the battery market seeks lower cost options and cells more suited for energy storage systems (ESS).

LFP cells have a higher volumetric and gravimetric energy density than sodium ion cells, as well as an improved lifecycle performance. However, research and development of sodium ion batteries is making their performance in these areas increasingly comparable to LFP cells.

“LFP cells are expected to remain the dominant technology for energy storage applications. However, the extent of forecast growth in the energy storage sector means that there is opportunity for emerging technologies such as sodium ion batteries to enter the market too,” said Catherine Peake, an analyst at Benchmark.

Performance: Sodium ion batteries vs LFP

As with lithium ion batteries, the different cathodes of sodium ion batteries – layered oxide, polyanionic, Prussian Blue analogues – have different benefits.

Layered oxide cathodes have the highest energy density of the sodium ion cathodes up to 170 Wh/kg. This is only slightly lower than that of LFP cells, positioning them well for short range EV and micromobility markets.

As the electric vehicle market has driven battery demand in recent years, layered oxide cathodes make up 73% of pipeline capacity for the sodium ion battery market, according to Benchmark’s Sodium ion Battery Forecast.

Polyanionic cathodes offer an improved safety profile than layered oxides, and have a superior cycle life. According to conversations Benchmark is having with key players in the sodium ion battery market, polyanionic cycle life is approaching and even exceeding that of LFP batteries, though this has not been demonstrated commercially yet.

These two advantages lend polyanionic cells to ESS applications and there has been increased interest in these cells as a result.

Though demand for Prussian Blue analogues is lower than the other cathode formats, supply exceeds that of polyanionic cathodes.Sodium ion batteries also perform well at both high and low temperatures, strengthening their case for ESS applications.

Cost competition

Oversupply in the lithium ion battery supply chain, and subsequent low cell cost, has created a highly challenging price environment for sodium ion batteries.

“We saw a huge surge in sodium ion battery announcements when lithium prices were at an all time high 18 months ago. Now the price of lithium has returned to 2021 levels we are seeing some consolidation in the sodium ion battery market,” said Peake.

LFP cells are currently exceptionally low cost at around $60/ kWh, according to Benchmark Lithium ion Battery Price Assessment.

However, Benchmark expects lithium prices to rise towards the end of the decade. The extent to which this will increase the cost of LFP cells is less clear, however it could make sodium ion batteries more cost competitive in the future.

This is especially true as the sodium ion battery market develops, with larger scale manufacturing and more mature supply chains. Though production is only expected to grow by a little over eight GWh between 2023 and 2024, this is almost a fourfold increase in supply.

All sodium ion formats benefit from a supply chain that is broadly independent from that of lithium ion alternatives. This is of particular value in the current market where western governments are seeking to derisk their supply chains from China.

Benchmark’s coverage of sodium ion batteries helps companies across the supply chain identify commercial bottlenecks and opportunities.

Our Sodium ion Batteries Forecast examines supply and demand of sodium ion battery cell, cathode and anode markets out to 2050.