Sodium-Ion Battery Market Size, Share & Trends Analysis Report By Type (Sodium-Sulfur Batteries, Sodium-Salt Batteries (Zebra Batteries), Sodium-oxygen (Sodium Air) Batteries), By Technology (Aqueous, Non-aqueous), By Application (Energy Storage and Grid Integration, Electric Vehicles (EVs), Residential Energy Storage, Emergency Backup And UPS, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global sodium-ion battery market size was valued at USD 1025 million in 2021 and is estimated to reach an expected value of USD 2665 million by 2030, growing at a CAGR of 11.2% during the forecast period (2022 - 2030).

Sodium-ion battery has set their footprint across the globe as a large-scale and low-cost alternative for lithium-ion batteries. The sodium metal in sodium-ion batteries exhibits a large ionic radius compared to that of lithium metal in lithium-ion batteries, which provides fewer changes in the materials during electrochemical cycling, thus providing more stability compared to the lithium-ion battery. Sodium-ion batteries exhibit excellent features such as low cost, energy densities, and power storage similar to other counterparts, safer with improved thermal stability, and remarkable cycle life. Sodium-ion batteries are generally more suitable for stationary applications than mobile applications.

Market Dynamics

Global Sodium-Ion Battery Market Drivers 

Increased Demand for Electric Vehicles

 Increased demand for electric vehicles is the primary driver of the Sodium Ion Battery Market. In recent years, there has been a significant drive to electrify transport to lower carbon emissions from fuel use. As climate change continues to endanger our planet's natural resources, governments have responded by reducing dependency on fossil fuels by pushing sales of Electric Vehicles or implementing more vital environmental rules related to alternative energy sources. The growing emphasis on renewable energy solutions will undoubtedly result in an increase in sodium-ion batteries, which is a technology that has the potential to give far greater capacities than typical lithium-ion cells while being more ecologically friendly.

More Preferred by Telecom Companies and Data Centres

 Fuel expenses account for around 30% of telecom tower running costs. Thus companies are actively searching for energy-efficient alternatives. The telecom sector is being affected by rising fuel prices. Regarding data design and operation centers, recent advances in battery chemistry are opening up new opportunities. They have a low internal resistance, a high cycle rate, and a high peak energy potential, are non-flammable and do not have any thermal chambers. Because of these characteristics, sodium-ion batteries are preferred by telecom and data centers. This factor is driving the Sodium Ion Battery Market.

Global Sodium-Ion Battery Market Restraint

Lack of Strong Industrial Supply Chain

 The lack of a solid industrial supply chain does not support the active use of sodium-ion batteries and restrains the growth of the Sodium Ion Battery Market. More weight as compared to Lithium-Ion Batteries: When compared to lithium metal, sodium metal has a higher weight. As a result, sodium batteries have limitations in their use in electric vehicles. This factor is restraining the growth of the sodium ion battery market. In March 2022, Blackstone Resources, a Swiss commodities company, claimed that its German battery subsidiary, Blackstone Technology, might put 3D-printed sodium-ion batteries to market as early as 2025. In July 2021, Contemporary Amperex Technology Co. Ltd (CATL) announced the release of its first-generation sodium-ion battery and its AB battery pack solution, which can combine sodium-ion and lithium-ion cells into a single pack.

Global Sodium-Ion Battery Market Opportunities

Cheaper than Lithium-Ion Batteries

 Lithium-ion batteries are costly to manufacture, and lithium is becoming increasingly rare. While a sodium-ion battery can store the same amount of energy as a lithium-ion battery, it has the potential to be cheaper and produced in greater quantity. Because of the availability of sodium in all scientific communities, Sodium-ion battery technology has now gained public attention as a potential and eco-friendly substitute for Lithium-ion batteries. This benefit of sodium-ion batteries drives the growth of the Sodium Ion Battery Market.

Regional Analysis

The global sodium-ion battery market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The Europe region dominated the market during the forecast period. Because more companies were involved in producing and commercializing sodium-ion batteries. In partnership with Williams Advanced Engineering and Oxford University, Faradion, an English business, created the world's first sodium-ion battery-powered vehicle. In January 2021, the company focused on the Low-Cost Storage of Renewable Energy project, financed by Innovate UK, to showcase Na-ion technology for solar energy storage. The potential of the Na-ion battery was shown by NAIADES, a European Union-funded initiative in France. The project's primary goal was to create a battery technology based on sodium-ion technology for long-term Electric Energy Storage (EES) that would significantly reduce the cost of lithium-ion technology while assuring long-term safety, cycle life, and energy density.

The North American region is the second largest and is expected to grow at a CAGR of 9.6% during the forecast period. Due to the rising adoption of electric cars and solar and wind power projects in this area, North America is expected to see significant growth during the forecast period. One of the fastest-growing renewable energy technologies is wind power. The sodium-ion battery market is expected to witness lucrative opportunities in the North American region owing to the plans for high-capacity solar and wind energy additions in the coming years and increasing electric vehicle sales in the region. 

The Asia-Pacific region is the third largest. With a target to reduce emissions, sodium-ion battery demand will rise in the power generation and transportation sector, especially in India, China, and other Southeast Asia such as Japan, Korea, Indonesia, and Malaysia.

Segmental Analysis

The global sodium-ion battery market is segmented based on type, technology, application, and region.

Based on type, the global market is segmented into Sodium-Sulfur Batteries, Sodium-Salt Batteries (Zebra Batteries), and Sodium-Oxygen (Sodium Air) Batteries. The sodium-Sulphur batteries segment dominated the market during the forecast period. Sodium-Sulphur (NAS) batteries are a subtype of sodium-ion batteries with a lithium sulfide cathode and a sodium anode. A Sodium-Sulphur battery is a molten-salt battery with a high energy density, excellent discharge and charge efficiency, and a long lifespan. These factors are responsible for the growth of the Sodium-Sulphur batteries segment in the sodium ion battery market.

Based on application, the global market is segmented into consumer electronic devices, automobile & transportation, power backup, grid-level applications, industrial, aerospace & defense, marine, and others. The energy storage segment emerged as the primary contributor in terms of value during the year 2021. The escalating global population has fueled a heightened requirement for electricity, particularly pronounced in nations like India and China. Consequently, this surge has spurred the development of smart grid infrastructures, incorporating battery energy storage systems to effectively regulate voltage and frequency fluctuations. This progression is projected to significantly augment the sodium-ion battery market throughout the envisaged forecast period.

The transportation segment is the second largest. Sodium-ion batteries can act as a replacement for costly lead acid batteries. The Na-ion battery has the potential for the S-L-I (starter-lighting-ignition) 12V battery or the 48V battery in an MHEV (mild hybrid electric vehicle). The sodium ion batteries can be used in low-cost electric vehicles such as e-scooters, e-rickshaws, and e-bikes by offering a much greater range.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• May 2022 - Faradion, World Leader in Sodium-ion Battery Technology Recognised for Exceptional Performance by the British Private Equity and Venture Capital Association's Vision 2022 Initiative. 
• May 2022 - Natron Energy, Inc., a leading manufacturer of sodium-ion batteries, and Clarios International Inc., the global leader in low-voltage advanced battery technologies for mobility, today jointly announced a strategic agreement to manufacture the world's first mass-produced sodium-ion batteries.
• October 2022 - Natron Energy, Inc. announced the Blue Rack™ battery cabinet launch, available in both 250kW and 500kW configurations. The Blue Rack is the world's first sodium-ion battery cabinet designed for mission-critical applications such as data centers, peak power-shaving, and other industrial power environments. Sodium-ion technology delivers tremendous power density with rapid discharge and recharge, is sustainably and ethically sourced, and is safe and completely non-flammable. Natron's new Blue Pack© battery powers the Blue Rack.
• July 2022 - Natron Energy, the world leader in sodium-ion batteries using Prussian Blue chemistry, is pleased to announce the recent market introduction by Xtreme Power Conversion of the industry's first rackmount Uninterruptible Power System (UPS) featuring Natron's sodium-ion batteries. The new Xtreme Power P91L UPS is available in 3kW, with 5kW ratings with 120 and 208/220/230/240V AC, 50/60Hz operation and uniquely configured to accept Natron's BlueTray 4000 48V DC battery for backup power. Xtreme Power's P91L UPS is available with Natron's battery and can be configured for numerous power levels and extended run times.