Sodium ion pipeline dominated by unproven cell producers

Two-thirds of the 2035 sodium ion pipeline capacity is from Tier 3 producers, the Benchmark Gigafactory Database shows. Just 10% of capacity is from Tier 1 producers – those who have proven their ability to produce battery cells at scale for customers outside of China.

The reverse trend is true for lithium ion batteries, with 42% of capacity being from Tier 1 producers and 21% from Tier 3.

As Tier 3 producers have yet to prove their ability to manufacture battery cells at scale, and at the quality needed for multiple customers, this highlights that much of the sodium ion manufacturing pipeline faces additional risks on top of the technological challenges associated with commercialising new battery technologies.

Who are the top sodium ion players?

BYD and CATL are currently the only Tier 1 cell producers with pipeline sodium ion facilities.

BYD is reported to have begun production of sodium ion batteries at the first line of its 30 GWh capacity sodium ion gigafactory in Qinghai, China. The facility is operated as a joint venture with Huaihai Holding Group. Through analysis of satellite imagery, Benchmark has confirmed the facility is complete and that activity is taking place.

This will be among the largest sodium ion gigafactories when it reaches full capacity, alongside CATL’s 25 GWh facility that came online in China last year.

The largest facilities in the sodium ion cell pipeline come from Tier 3 producers, Peak Energy (US) and Inner Mongolia Xinjin New Energy Technology (China), both of which have 50 GWh sodium ion gigafactories in the very early stages of planning. Overall, Tier 3 producers have 390 GWh of capacity in the pipeline for 2030.

However, as Tier 3 producers, they have significant development work required from technical, supply chain and manufacturing standpoints to prove they can compete with incumbent cell producers on performance and cost at the gigascale.

Join Benchmark on Tuesday 19 August for the free-to-attend Webinar, Sodium ion Batteries: Hype vs Reality on the Road to Commercialisation.