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Sodium, the main ingredient in table salt, is about to power mass-produced electric cars.
For years, Lithium-ion batteries have been the only viable option for electric vehicles and large-scale energy storage systems. But now things are changing. Sodium-ion batteries, often called salt batteries, are moving out of research labs and powering real products.
Chinese battery manufacturer CATL plans to use Sodium-ion batteries in passenger cars, commercial vehicles, and power storage systems by the end of 2026.
Carmaker Changan is also preparing to launch the first mass-produced electric car powered by a Sodium-ion battery. Meanwhile, utility companies in the US and Europe are testing these batteries on their power grids.
None of this means Lithium-ion is going away. But 2026 looks like the year Sodium-ion batteries start being a business story.
How a Sodium-Ion Battery Works
A Sodium-ion battery is built the same basic way as a Lithium-ion battery. It has a cathode, an anode, an electrolyte, and a separator. During charging and discharging, Sodium ions move between the two electrodes to store and release energy.
The key difference is the type of ion used. Instead of Lithium, these batteries use Sodium, which is derived from common sources such as salt, soda ash, and brine. Sodium is found in many parts of the world, while Lithium is mainly mined in countries such as Australia, Chile, and China.
Using Sodium also helps reduce costs. Sodium-ion batteries can use aluminum foil for both electrodes because Sodium does not react with aluminum, unlike Lithium. They also often replace expensive materials such as cobalt and nickel with more affordable iron- and manganese-based cathodes and hard-carbon anodes. This makes the supply chain cheaper and less dependent on a few countries.
Sodium-ion research has been going on for decades, but interest has always tracked the price of Lithium. When Lithium prices spiked in 2021 and 2022, funding for Sodium-ion technology surged. When Lithium crashed back down in 2023 and 2024, that interest cooled.
Battery-grade Lithium carbonate prices in China roughly doubled between mid-2025 and early 2026, trading near $25,000 to $26,000 per metric ton by April 2026, among the highest levels in more than two years. The rebound has been driven by strong demand for EVs and grid-scale storage, a new source of demand from batteries for AI data centers, and supply-side problems, including delays at major Lithium mines.
Sodium-Ion in Electric Vehicles
CATL’s Sodium-ion brand, called Naxtra, is the technology behind the industry’s biggest EV milestone this year. In February 2026, CATL and Changan unveiled the Nevo A06, described as the world’s first mass-produced passenger car with a Sodium-ion battery.
The car uses a 45 kWh Naxtra pack rated at 175 Wh/kg, offering more than 400 kilometers (about 249 miles) of range on China’s CLTC test cycle. CATL says future versions of Naxtra could reach a range of 500-600 kilometers as the supply chain matures.
The biggest advantage of sodium-ion batteries is their performance in cold weather.
CATL says its Naxtra battery keeps more than 90% of its capacity even at -40°C. At -30°C, it can also deliver about 3x the power of a similar lithium iron phosphate (LFP) battery. Since electric cars often lose driving range in freezing temperatures, this could make Sodium-ion batteries a better choice for colder regions like northern China, Canada, and northern Europe.
Another major battery maker, BYD, is also developing Sodium-ion technology. In February 2026, the company said its third-generation Sodium-ion batteries lasted up to 10,000 charge cycles in laboratory tests.
The Bigger Opportunity Might Be Power Grids
Sodium-ion batteries may have a bigger future in grid-scale energy storage than in electric cars.
Sodium-ion batteries store less energy than Lithium-ion batteries; hence, more battery cells are required, making them heavier. That is a disadvantage for cars.
For power storage next to solar farms, wind farms, or electrical substations, weight is not important. Instead, lower cost, long life, and the ability to handle extreme temperatures matter more. That’s where Sodium-ion batteries perform well.
Several companies are already investing in this technology. CATL has signed major deals to supply Sodium-ion batteries for large energy storage projects in China and Europe. In the US, startup Peak Energy has already installed the country’s first grid-scale Sodium-ion battery system and is testing it on a live power grid. Some Sodium-ion batteries also need less cooling equipment, which can reduce installation costs.
Are Sodium-Ion Batteries Really Cheaper?
Not yet, at least not by much.
Current estimates suggest Sodium-ion batteries cost about the same as Lithium Iron Phosphate (LFP) batteries. Some reports claim they are much cheaper, but those figures have not been independently confirmed.
A 2025 study by researchers at Stanford University found that Sodium-ion batteries are not consistently cheaper than LFP batteries today. They believe any major cost advantage may not appear until the 2030s. Their price will also depend on what happens to Lithium prices. If Lithium becomes cheaper again, Sodium-ion batteries will have a harder time competing.
What Could Slow Their Growth?
Sodium-ion batteries still face several challenges.
- Production is still very small compared to that of Lithium-Ion batteries.
- Most manufacturing is based in China, creating supply chain concerns.
- While Sodium-ion batteries are often promoted as safer, recent tests have shown they can still overheat under certain conditions.
These challenges do not mean That Sodium-Ion batteries will fail, but they show that the technology is still developing.
The Bottom Line
Sodium-ion batteries are not replacing Lithium-ion batteries.
Instead, they are becoming another option for situations where low cost, long lifespan, and good performance in cold weather are more important than maximum driving range.
Lithium-ion batteries will likely remain the best choice for long-range electric vehicles. In contrast, Sodium-ion batteries could become popular for affordable EVs, cold-climate vehicles, and large energy storage systems. Their future will depend on how quickly production grows, how well safety improves, and whether Lithium remains expensive.
