As lithium price volatility continues to challenge the global automotive industry, battery leader CATL is pushing forward with its dual lithium-sodium strategy. During the World Economic Forum in Dalian, Chief Manufacturing Officer Ni Jun revealed that the company anticipates equipping 10,000 to 20,000 electric vehicles with sodium-ion batteries this year.
This week, CATL also introduced the Tener Sodium, a new sodium-ion battery energy storage system. Initial deliveries in China are set for September 2026, with global shipments expected to begin in June 2027.
Technological breakthroughs and cold-weather performance
CATL has invested nearly 10 billion yuan (1.5 billion USD) in sodium-ion battery research over the past decade, expanding its R&D team by more than 300 members. According to Chief Technology Officer Gao Huan, these efforts have boosted energy density by 50%. The company describes its current products as being at a “milestone stage,” with mass production scheduled for the fourth quarter of this year.
A standout feature of CATL’s new technology is its ability to perform in extreme cold. Ni Jun stated that the batteries operate normally in temperatures ranging from -20°C to -30°C. This capability opens market opportunities in regions with harsh winters, such as Northern North America, Canada, and parts of Japan.
In February, real-world tests at a proving ground in Yakeshi, Inner Mongolia, saw Changan vehicles navigate icy roads and steep slopes using CATL’s sodium-ion technology. Calvin Quek, Executive Director of Nature Finance at the Oxford Sustainable Finance Group, observed the tests and described them as a “breakthrough moment” for sodium-ion technology in the EV sector, as reported by WallstreetCN. Reports indicate that Changan will begin sales of models featuring this technology mid-year.
Hedging against lithium volatility
The renewed interest in sodium-ion batteries is largely driven by sharp lithium price swings. Data shows that China’s lithium carbonate prices surged by nearly 190% between June of last year and April 20, 2026, significantly raising raw material costs.
CATL is positioning sodium-ion batteries as an “alternative risk management” tool to hedge against such volatility. With sodium resources globally abundant, this strategy aims to strengthen supply chain resilience and diversify raw material dependencies. CATL also sees 2026 as a watershed year, forecasting that sodium-ion costs will match those of lithium-ion batteries by the end of this year.
