A major sodium-ion battery project in the world, developed and operated by Datang Hubei Energy Development, is set to double its capacity from 50MW/100MWh to 100MW/200MWh. The project already has an impact on the energy storage industry and represents a significant step towards building large-scale storage projects using non-lithium technologies. The project includes 42 BESS containers, 21 power conversion system units, and a 110kV booster station.
Sodium-ion technology is gaining traction as an alternative to lithium-ion batteries that currently dominate the market. While having a lower energy density and higher cost, sodium-ion batteries could be up to 30% cheaper than lithium-ion by 2025. Commercialization and cost reductions have been slower than anticipated, but sodium-ion batteries offer advantages such as better round-trip efficiency and cycle lifetime at extreme temperatures.
The investment in sodium-ion technology by China is driven by concerns about potential lithium supply chain disruptions in the future. With abundant reserves of minerals for sodium-ion batteries, China aims to establish itself as a leader in this emerging sector. It is projected that a ‘terawatt-hour’ sodium-ion battery industry could form by 2030, laying the groundwork for a more sustainable energy storage ecosystem.
