"Ning Wang" goes all-in on sodium batteries

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Author | Zhou Zhiyu

A battery revolution has reached a critical point.

At a recent supplier conference, CATL stated that by 2026, sodium-ion batteries will be widely applied in battery swapping, passenger vehicles, commercial vehicles, and energy storage, with the potential for a “twin stars of sodium and lithium” trend. CATL representatives told WallstreetCN that they are optimistic about the prospects of sodium batteries, and sodium is definitely a promising material.

In the past, sodium batteries were often seen within CATL’s portfolio as a “scarecrow” used to intimidate upstream lithium miners, and the market has had doubts about when this technology could be scaled up. CATL’s statement this time clearly sets higher expectations for the upcoming sodium battery market.

Just this September, CATL’s sodium battery received the new national standard certification, removing the final regulatory barrier in the minds of OEMs.

CATL also launched the "AB Battery System" this year. In one battery pack, there are lithium cells responsible for long range and sodium cells responsible for low temperature resistance and cost reduction, which can mitigate the sodium battery’s energy density shortfall and leverage its cold-resistance advantages.

Of course, in this trillion-yuan track, “King Ning” is never short of competitors. BYD launched its first mass production line for sodium-ion batteries in Xining, Qinghai this July; EVE Energy broke ground on a new sodium headquarters in December; Ronbay Technology even pledged its allegiance, vowing to become CATL’s largest supplier of sodium cathodes by 2026.

Zhao Ruirui, deputy director of the Central Research Institute at EVE Energy, told WallstreetCN that sodium batteries are positioned as complementary to lithium batteries. Lithium batteries already have established product advantages, but "in case of mass conflict (meaning an extreme supply chain standoff), you must have a substitute; you can’t be at someone else’s mercy."

Moreover, the growth of AI data centers has created new opportunities for sodium batteries. Zhao Ruirui said that not only are these centers major power consumers, they are also major heat generators. Under long-term high temperature, lithium batteries' structural stability deteriorates and poses safety risks, while sodium batteries tolerate 60°C far better than lithium batteries.

Additionally, AI data centers require UPS systems with “instant energy replenishment.” Sodium batteries’ high-power output characteristics allow them to “connect within a second” in case of power loss, ensuring no data is lost.

Although EVE Energy’s sodium battery production has not yet scaled up, it has already been intensively tested by top ten strategic clients such as Huawei.

This is a silent hunt. Everyone is betting that 2026 will be the “industrialization first year” for sodium batteries. Whoever cuts costs first will hold the entry ticket for the next decade.

The timing for CATL and other battery giants to make their voices heard is just right.

In the past two years, lithium prices have been like a rollercoaster. Although the sharp drop in 2024 let the supply chain “breathe a sigh of relief,” in Q4 2025, lithium carbonate’s restless price line rose again, piercing the 130,000 yuan/ton barrier at one point. This familiar pain instantly awakened the “muscle memory” of automakers and battery makers — that choking feeling of having their throats gripped by upstream miners is something no one wants to go through again.

UBS Head of China Basic Materials Research Ding Yueli told WallstreetCN that the lithium carbonate market in 2026 will remain relatively tight and balanced.

According to Ding Yueli’s calculations, next year’s lithium carbonate demand from EVs is expected to grow by 15% year-over-year, while energy storage is the key variable. UBS understands that top companies are aiming for a doubling in lithium carbonate demand from energy storage next year, with some large firms expecting growth of more than 70%. So estimating a 50-60% increase, if energy storage sees even higher growth, there will be an upside risk for lithium carbonate demand.

CICC points out that the next upswing cycle in the electric industry will be driven primarily by energy storage. For energy storage to explode, there must be ultra-low costs. When lithium prices rebound, only sodium batteries can act as a “cost stabilizer.”

This means that as lithium carbonate prices rise, the market is growing anxious, and CATL hopes to use this timing to get more users to accept sodium batteries.

For the past decade, lithium has been the absolute king. Its price swings have dictated trillion-yuan market caps and determined the pricing of new car models.

But this time “King Ning” is betting big on sodium batteries, and with EVE Energy, BYD, and other giants following suit, it’s effectively putting a full stop to this chapter of the era.

As downstream manufacturers become more receptive to sodium batteries and as client validation data accumulates, the leap from test samples to mass production is only a matter of time.

This means that after 2026, energy competition will no longer be a single-dimension resource grab, but will move toward a diversified, coexisting eco-balance. This will be a more resilient energy system. In such a system, prices are less likely to run out of control and supply chains will no longer be so fragile.

The so-called “big bet” on sodium batteries is actually to stabilize volatility for long-term security.

Using sodium’s universality to address lithium’s scarcity, using technological certainty to hedge against future uncertainty. This is what true energy revolution should look like.

Risk Warning and DisclaimerThe market has risks, and investment must be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular situations. Invest accordingly at your own risk. ```