Sodium Ion Battery Market Size - By End Use (Automotive, Energy Storage, Others), By Technology (Aqueous, Non Aqueous), & Forecast, 2025 – 2034

Sodium Ion Battery Market Size

The global sodium ion battery market was valued at USD 270.1 Million in 2024 and is set to grow at a CAGR of 26.1% from 2025 to 2034. Rising demand for cost-effective sustainable solutions with reduced supply chain risk is set to boost product adoption. Growing adoption of environmentally friendly alternatives that align with growing global concerns about sustainability and the environmental impact of battery production will foster product penetration.
 

Researchers from the Swedish Environmental Research Agency, analyzed findings from around 40 foreign studies to assess the carbon footprint of a lithium-ion battery. The agency claims that the production of 1 kWh of batteries would result in the emission of approximately 150 to 200 kilograms of CO2, reflecting the global energy mix that relies predominantly on fossil fuels thereby improving sodium ion battery market growth.
 

Growing demand for safe batteries from EVs and grid storage that are less prone to thermal runaway compared to other batteries will drive the market growth. Moreover, SIBs are extremely useful in stationary energy storage systems, which can assist in integrating solar and wind energy sources. Their ability to work under different temperatures and conditions allows them to be useful in different applications, fueling the industry landscape.
 

Moreover, increasing investments to improve the energy density and cycling stability of SIB technology to make it suitable for a wider range of uses, will further improve business metrics. The emerging potential of SIBs within the light vehicle segment on account of their lower energy density of around 160 Wh/kg, making it a cost-effective alternative where high energy density is not a primary requirement.
 

Sodium Ion Battery Market Trends

• Increasing investment in battery R&D to enhance their performance and expand their potential applications will propel product adoption. Furthermore, rising government initiatives to promote sustainable energy storage solutions will foster industry growth. In December 2024, the U.S. DOE, in collaboration with the LENS Consortium supervised by Argonne National Laboratory, has announced an investment of USD 50 million over 5 years to improve sodium ion battery technology.
   
• Growing global dependence on cobalt and lithium has raised concerns about supply security, especially since these resources are concentrated in specific regions prone to geopolitical instability, which in turn facilitates SIB adoption due to greater accessibility, improving resource security and supply chain resiliency.
   
• Sodium, the sixth most abundant element on Earth, has emerged as a promising alternative across various applications. About 70% of the element in the world comes from seawater, which has 500–1,000 times more sodium than lithium, minimizing concerns about resource depletion. This abundance positions sodium as a sustainable option for future technologies. Furthermore, companies such as Indi Energy harness sodium ion technology, utilizing BioBlack a hard carbon derived from biowaste, and agricultural waste will improve the product growth.
   
• Rising demand for batteries well suited for grid-scale energy storage will support the product growth due to their high thermal stability and long cycle life of 5,000+ cycles. Ongoing projects commissioning and approval of future projects will enhance the industry scenario. For instance, in June 2024, in Hubei Province, China based Datang Group unveiled the operation of grid-connected sodium ion battery energy storage system boasting a capacity of 50 MW/100 MWh. This achievement establishes it as the world's largest operational sodium ion storage project.
   

Sodium Ion Battery Market Analysis

• The sodium ion battery industry was valued at USD 172.8 million, USD 215.5 million and USD 270.1 million in 2022, 2023 and 2024 respectively. The industry is segmented in automotive, energy storage, and others based on end use.
   
• The energy storage segment is anticipated to value more than USD 2.32 billion by 2034 on account of their cost effectiveness, particularly for utilities and renewable energy projects looking to optimize their investment. Increasing safety concerns in various grid-scale installations are driving product adoption having a lower risk of thermal runaway compared to lithium-ion batteries, reducing the likelihood of fires and explosions.
   
• Rising key players shift from alternative batteries to SIBs will improve the business outlook. In April 2024, Natron Energy launched commercial-scale sodium-ion battery production at its Holland, Michigan facility to meet energy storage demands for AI-driven data centers. The company invested over USD 40 million to convert existing lithium-ion lines within the USD 300 million plant. The project received USD 19.8 million from ARPA-E’s SCALEUP program.
   
• The automotive segment is expected to grow at a rate of 33.2% through 2034, on account of their cost-effectiveness compared to lithium iron phosphate batteries. Rising demand for safer batteries in automotive industry on account of growing accidents and customers awareness will stimulate the product adoption due to their lower risk of thermal runaway and better stability under extreme temperatures.
   
• The industry is further supported by established players to boost the product adoption. In December 2023, JAC Group’s Yiwei, backed by Volkswagen, introduced China’s first sodium-ion battery EV. The Sehol E10X features a 25 kWh battery with 120 Wh/kg energy density and supports 3C to 4C fast charging, enabling 10% to 80% recharge in 20 minutes.
   

• Based on technology, the sodium ion battery market is segmented into aqueous and non aqueous. Th aqueous segment holds a market share of 21.8% in 2024 owing to their enhanced safety, and reduced risk of fire or explosion, even under extreme conditions such as overcharging, short circuits, or physical damage. 
   
• Growing need for inexpensive technology suited for extensive energy storage systems where cost is a primary factor will support the business growth. Also, the absence of costly organic solvents and other safety features further promotes the adoption of these products by lowering the manufacturing cost.
   
• Furthermore, growing research funding from multiple research entities geared towards making the technology cheaper and unique to target a wide application range will boost the business curve. A group of scientists from University of Maryland and University of Adelaide created a new aqueous sodium-ion battery in 2024 with a life expectancy of more than 13,000 charge cycles.
   
• Non-aqueous segment is set to grow at a CAGR of over 25.5% by 2034 on account of its demonstrated energy densities comparable to lithium-ion batteries, with recent innovations achieving 150 Wh/kg energy density. While slightly lower than lithium-ion’s typical 200 Wh/kg, the cost-to-performance ratio makes Na-ion more attractive for certain applications, such as low-cost EVs and stationary energy storage.
   
• Various key players are exploring the product possibilities in various sectors to reduce dependency on alternative technologies. In December 2021, Reliance New Energy Solar has fully acquired Faradion Limited, a growing provider of non-aqueous sodium ion cell technology, for USD 134.9 million. Faradion’s technology will be incorporated into Reliance’s upcoming energy storage giga-factory that is part of the Dhirubhai Ambani Green Energy Giga Complex project in Jamnagar.
   
• Furthermore, rising innovations in non-aqueous SIB technology aimed to improve performance and efficiency will augment the product growth. Growing researchers focus on enhancing anode and cathode materials such as sodium manganese oxide and hard carbon to boost the overall capacity and cycle life will augment market growth.
   

• As of 2024, North America holds more than 22.1% of the market share. The U.S. sodium ion battery market was valued at USD 35.4 million, 44.2 billion, and 55.5 billion in 2022, 2023 and 2024 respectively.
   
• Rising federal initiatives, such as the DOE support for next-generation energy storage technologies, are improving research and development in the product leading to create future prospects. Furthermore, in the U.S. significant growth in renewable energy installations and grid modernization, projects will stimulate product demand as a favorable cost and safety solution, for large-scale energy storage projects.
   
• Growing government and key players support to back the new entrants in the market will enhance the business outlook. In June 2024, UNIGRID Battery, a startup developing advanced SIB, raised USD 12 million in an oversubscribed Series A funding round. The funds will be used to enhance the production capacity and meet orders from customers and the commercial scale operations which help position the product as an important component in the energy storage systems of many industries.
   
• Asia Pacific sodium ion battery market is expected to grow by more than USD 1,490 million by 2034. Expansion of EV industry in the region fuels demand for alternative, low-cost, and high-performance batteries. Presence of key players in the region including China, Japan, and South Korea and their efforts to incorporate sodium ion into the EV application will complement the industry projections.
   
• Furthermore, the presence of several companies and research institutions such as CATL, and HiNa Battery in the region and their active investment in sodium-ion battery technology will strengthen industry outlook. In August 2024, Sineng Electric has launched a 50 MW/100 MWh sodium-ion BESS in Hubei province, China, kicking off the first phase of a larger initiative targeting an expansion to 100 MW/200 MWh.
   
• Furthermore, presence of several companies such as CATL, and HiNa Battery in the region and their active investment in technology will strengthen industry outlook. In August 2024, Sineng Electric has launched a 50 MW/100 MWh sodium-ion BESS in Hubei province, China, kicking off the first phase of a larger initiative targeting an expansion to 100 MW/200 MWh.
   
• Europe is expected to grow at a CAGR of 26.5% in line with increasing commitment to reducing carbon emissions and transitioning to cleaner energy sources. Furthermore, growing energy storage system demand from countries including Germany, UK and Spain due to the growing share of intermittent renewable energy sources such as wind and solar will foster the product penetration on account of their affordability and scalability.
   

Sodium Ion Battery Market Share

• Top three players, including CATL, China BAK Battery, and HiNa Battery Technology account for nearly 33.3% of the sodium ion battery industry. These businesses are focusing on improving the batteries performance by developing advanced anode and cathode materials, such as layered oxides and hard carbon. These innovations aim to enhance energy density, cycle life, and charging speed, making SIB batteries more competitive with alternatives.
   
• Moreover, a number of businesses collaborate with universities and research institutions to develop new technologies and incorporate innovative developments into their product design processes. Companies such as Natron Energy and Faradion are also predicted to significantly capture the market owing to their active expansion of facility and partnerships aimed at speeding up technology development and commercialization.
   
• In August 2024, Natron Energy will invest USD 1.4 billion into a new facility covering 1.2 million square feet that will be built on the Kingsboro CSX Select Megasite in North Carolina. The factory will produce large scale 24GWh sodium-ion batteries and will employ over 1000 people from the local region.
   

Sodium Ion Battery Market Companies

• Farasis Energy, a growing Chinese company in sodium ion battery business, has net income growth of 53.0% in 2024. The business recorded R&D expenditure as a percentage of total operating revenue of 4.5% towards product development. In February 2024, Farasis Energy successfully introduced the world’s first electric vehicle with sodium ion batteries integrated into it.
   
• Altris, a growing company in the market, secured USD 13.5 Million Series B1 funding and onboard new strategic investors such as such as Clarios and Maersk Growth. The firm focuses on advancing SIB innovation using materials that are readily available and sustainable such as sodium and iron. This shift also lessens the company's reliance on expensive and scarce materials such as cobalt and lithium, which are prevalent in lithium-ion batteries.
   
• SVOLT, a rapidly expanding battery manufacturer, reported an estimated revenue of approximately USD 500 million in 2022. This company continues to progress in the development of sodium-ion batteries with the intent to increase energy density and market their solutions as substitutes for lithium-ion batteries. In December 2022, Svolt Energy unveiled its inaugural sodium-ion battery prototype, boasting an energy density of 100 Wh/kg.
   

Sodium Ion Battery Market Companies

Eminent players operating in the sodium ion battery industry are:

• Altris
• CATL
• China BAK Battery
• Farasis Energy
• Faradion Limited
• HiNa Battery Technology
• Li-FUN Technology
• Natron Energy
• Northvolt
• SVOLT
• Tiamat
   

Sodium Ion Battery Industry News

• In May 2024, Altris and Clarios signed a Joint Development Agreement to enhance SIB technology for low-voltage mobility applications. Altris will develop the sodium-ion cells, while Clarios will apply its expertise in Battery Management Systems, software, and system integration to design the complete battery system.
   
• In November 2023, Northvolt, a Swedish battery manufacturer, announced a breakthrough in sodium-ion battery technology. The new batteries have an energy density of 160 watt-hours per kilogram, which is comparable to some LFP batteries
   
• In December 2022, HiNa, which emerged from the Chinese Academy of Sciences, has inaugurated a production line for SIB that reaches gigawatt-hour scale. In addition, they launched a new range of SIB products and presented a prototype of their electric car, positioning the company as a significant player in the evolving battery technology market.
   

This sodium ion battery market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Million” from 2021 to 2034, for the following segments:

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Market, By End Use

• Automotive
• Energy Storage
• Others  

Market, By Technology

• Aqueous
• Non Aqueous

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
• Rest of World