The global sodium-ion battery market 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.
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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.
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.
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.
The global sodium-ion battery market is segmented based on type, 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 consumer electronic devices segment dominated the global sodium ion battery market during the forecast period. Consumer electronic equipment, such as digital cameras and mobile phones, primarily employ sodium-ion batteries. Because of their cost-effectiveness and safety, they are gradually replacing lithium-ion batteries. Such benefits drive segment growth.
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.
The global sodium-ion battery market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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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.
Some major global sodium-ion battery market companies are Faradion, AGM Batteries Limited, NEI Corporation, Natron Energy, Haldor Topsoe A/S, Hina Battery Technology Co., Ltd, Aquion, Sumitomo Chemical Co., Ltd., Naiades, and Tiamat Energy among others.