Sodium-ion battery cell cost could drop to $40/kWh, says IRENA

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1. ### Summary: Sodium-ion battery cell cost could drop to $40/kWh, says IRENA

   A new IRENA technology brief says sodium-ion batteries (SIBs) could become a much cheaper complement to lithium-ion batteries (LIBs), with some manufacturers expecting cell costs to fall to around $40/kWh once production scales. The potential comes mainly from sodium’s huge abundance and low cost: sodium carbonate has been far cheaper and more stable than lithium carbonate in recent years, and SIBs can also use cheaper cathode materials (like manganese and iron) and aluminium current collectors instead of copper.

   The report notes that SIBs first surged into focus when lithium prices spiked in 2021, but with lithium now cheaper, it’s still unclear whether SIBs will ultimately beat LIBs on cost. Production capacity for SIBs is projected to reach about 70 GWh this year, largely in China, and could rise to 400 GWh annually by 2030, though demand forecasts vary wildly (50–600 GWh). Beyond EVs, IRENA highlights strong potential in large-scale stationary storage, especially in very hot or cold climates where SIBs’ safety and thermal performance give them an edge. Overall, the agency argues SIBs should be seen as a complementary technology to ease supply-chain and sustainability pressures on lithium, with their long-term success hinging on relative costs and how tight – or relaxed – the lithium supply chain becomes.

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