Sodium-ion batteries approach cost parity with LFP

Sodium-ion batteries are approaching cost parity with LFP. Upfront costs are higher, but total cost of ownership can be 21% lower over 20 years.

The initial gap is US$ 229/kWh versus US$ 200/kWh, but total cost of ownership can be 21% lower over 20 years. The progress comes from partnerships such as the one between POSCO Future M and LG Energy Solution, which signed a contract worth 1.035 trillion won, valid from 2028 to 2031. The plant in Pohang, converted to LFP, begins operating in December.

Production capacity could reach 89,000 tons after the second phase of conversion in 2024, and up to 170,000 tons if Gwangyang is also converted. LG Energy Solution has a backlog of 160 GWh in orders for energy storage systems (ESS) in North America. New research has developed an anode with a graphene layer, enabling ultra-fast charging and a long service life.

The battery was tested in coin cells and can be used in vehicles and energy storage. Companies such as POSCO Future M, LG Energy Solution and L&F are involved in partnerships and contracts for the production of materials and batteries. Sodium-ion is entering the commercial production phase and becoming an alternative to lithium-ion, thanks to supply chain diversification, low-temperature performance and the potential for lower total cost of ownership.

Sodium-ion batteries have higher upfront costs, but may be more efficient in the long run. This means that even if the entry price is higher, the accumulated cost can make up for it. The technology also offers advantages in production, with greater potential for scale. This shows that the industry is preparing to increase production, which could help reduce costs in the future. This may be important.

Supply chain diversification is one of the main factors driving the use of these batteries. Companies such as POSCO Future M have already signed contracts with Samsung SDI and SK On, and are now expanding the chain with L&F. The expansion of the supply chain helps address restrictions on Chinese materials, such as those imposed in the US.

LFP production is expanding, with plants in Pohang and doubled capacity. Sodium-ion batteries are becoming a viable alternative for companies seeking supply chain diversification.

Partnership expands production and reduces costs

Partnership expands production and cuts costs: Sodium-ion batteries are reshaping supply chain logistics. The partnership between POSCO Future M and LG Energy Solution secures 720,000 tons of LFP materials through 2033, expanding production scale and reducing unit costs.

With information from pv-magazine.com, thelec.net and notebookcheck.net.