The evolution of internal combustion vehicles has brought significant advancements since Henry Ford’s assembly line, including automatic transmissions, self-starters, electronic ignitions, fuel injection, disc brakes, and air conditioning. Why should we assume electric vehicles will not experience similar progress?
One challenge with today’s NMC-based batteries is their reduced performance in cold weather. LFP batteries handle cold better, but sodium-ion batteries excel in these conditions. This week, CATL, the world’s largest battery manufacturer, announced it has begun producing sodium-ion battery packs for light commercial vehicles that can be charged in extreme cold, down to -30°C (-22°F). Even at -40°C, CATL claims the battery retains 90% of its usable capacity.
CATL’s new battery platform for commercial vehicles, Techtrans II, includes batteries for heavy-duty trucks and buses. The industry’s first mass-produced sodium battery for light commercial vehicles has now been added. This sodium battery pack has a capacity of 45 kWh and is designed for small vans and trucks, where long range is not the primary concern.
Techtrans II offers several variations, some using lithium-ion technology. One variant features ultra-fast charging, reaching 20 to 80 percent in 30 minutes at -15°C. Another is a high-temperature, ultra-fast charging version that adds 60 percent range in 18 minutes and offers a cell life of 5,000 cycles at 45°C. The series also includes a long-range version with a battery pack capacity of up to 253 kWh, delivering 800 kilometers of range. The new sodium-ion battery reportedly has a lifespan of over 10,000 charge cycles and is certified under the new Chinese national standard GB 38031-2025.
CATL is also introducing swappable battery packs as part of the Techtrans series. Alongside the #20 battery swap block with 42 kWh capacity, there are the #25 block with 56 kWh and the #35 block with 81 kWh. In 2026, CATL expects large-scale adoption of sodium batteries in battery swapping, passenger vehicles, commercial vehicles, and energy storage. According to multiple Chinese news sources, sodium-ion and lithium-ion batteries are expected to drive a new “dual-star” trend at CATL.
In April 2025, CATL introduced its first sodium-ion battery, Naxtra, at its Tech Day, marketing it for passenger cars with an energy density of up to 175 Wh/kg. The same energy density is now specified for the Techtrans II sodium battery.
Why the focus on sodium-ion batteries? For years, lithium-ion battery prices have steadily declined, reaching just over $100 per kWh late last year, largely due to lower lithium carbonate prices. However, an oversupply led to falling prices, prompting lithium producers to limit production and, in some cases, close facilities. When demand outpaces supply, prices rise.
According to Investing News Network, benchmark prices for battery-grade lithium carbonate and hydroxide have surged this year, with prices exceeding $20,000 per metric ton. Spodumene also rose above $2,000 per metric ton for the first time since October 2023.
Momentum has been especially strong in China, where lithium prices increased after Beijing announced changes to export tax rebates for battery products. The finance ministry stated that value-added tax rebates on battery exports will drop from 9 percent to 6 percent in April and will be eliminated on January 1, 2027.
Last week, lithium carbonate futures on the Guangzhou Futures Exchange closed at 156,060 yuan per metric ton ($22,300), the highest since November 2023 and up more than 160 percent from last year’s lows. “With the recent surge in spot prices and market activity, it’s great to see that volumes are following the price trend,” said Przemek Koralewski, Fastmarkets’ global head of market development. What was once considered a strong month in trading volume can now be achieved in a week, indicating increased market liquidity. Before 2026, lithium prices faced a prolonged downturn due to oversupply, weaker-than-expected electric vehicle demand, and price pressure that forced producers to cut output and delay projects.
By December 2025, lithium carbonate prices had risen about 56 percent from their January 2025 low. Whether this rally continues depends on how quickly new supply comes online and if demand growth meets expectations. Some closed mines and facilities may take a year or more to restart.
Sodium is both cheap and abundant. While sodium batteries do not use table salt, the raw material is inexpensive and widely available. This has clear implications for the transition to electric vehicles. Lithium-ion battery pack prices have dropped by over 50 percent in recent years. Sodium-ion prices are not much lower than lithium-ion today, mainly because they are new to the market and have yet to benefit from economies of scale that will come as production ramps up.
Sodium batteries also offer long life expectancy. With 10,000 cycles, they are ideal for energy storage. Assuming 365 charge/discharge cycles per year, they could last nearly 30 years, a statistic that should interest the energy storage industry.
Sodium batteries are just beginning to gain attention, but it is likely we will hear much more about them in the coming months and years, especially if lithium battery costs continue to rise. Currently, their energy density is too low for many automotive uses, but it is worth remembering that LEDs were once considered too dim for commercial applications. Expect to hear much more about sodium batteries soon - very soon.
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