China Launches First Major Sodium-Ion Battery Energy Storage Station

China has launched its first large-scale energy storage station powered by sodium-ion batteries, a move that aims to commercialize a technology which could reduce dependency on more costly lithium-based solutions [para. 1][para. 3]. The Fulin Sodium-ion Battery Energy Storage Station, in Nanning, Guangxi Zhuang autonomous region, began its first phase of operation on May 11 [para. 2].

This facility is designed to store excess energy generated from renewable projects like solar and wind, then supply it to the grid when there is a demand. Currently, it has a storage capacity of up to 10 megawatt-hours (MWh), sufficient to cover the daily electricity needs of approximately 1,500 households [para. 3]. Once fully operational, the station is projected to generate an annual power output of 73,000 MWh, reducing about 50,000 tons of carbon dioxide emissions [para. 4].

HiNa Battery Technology Co. Ltd., the manufacturer of the station’s power cells, stated that this is China’s first large-scale application of sodium-ion battery technology [para. 5]. Sodium-ion batteries present a potential disruptive technology as they can replace lithium-ion batteries, the latter involving relatively expensive raw materials. Sodium, on the other hand, can be extracted from salt, leading to raw material costs that are about 30% to 40% lower compared to lithium batteries [para. 6].

During the Covid-19 pandemic, the prices of lithium surged, prompting Chinese electric vehicle (EV) and battery manufacturers to expedite the development of sodium-ion technology [para. 7]. Sodium-ion batteries offer the advantages of faster recharging times and better performance at low temperatures. However, they have lower energy density and a shorter life cycle compared to lithium-ion batteries. Thus, they are more suited for applications where size and weight are less critical, like in energy storage and short-range EVs [para. 8].

Mass production of sodium-ion batteries is yet to be realized. Manufacturing costs could decrease by 20% to 30% once economies of scale are achieved, according to Chen Man, deputy secretary-general of the National Electric Power Storage Standardization Technical Committee [para. 10].

The Nanning facility is part of a national project initiated in November 2022 by Guangxi Power Grid Co. Ltd., in collaboration with HiNa and the Chinese Academy of Sciences’ Institute of Physics. Future plans aim to expand the capacity of the facility tenfold to 100 MWh [para. 11]. The National Energy Administration named 56 energy storage demonstration projects earlier this year, of which two will use sodium-ion batteries, compared to 17 that will use lithium-ion batteries and 11 that will use compressed-air [para. 12].

In the EV sector, Contemporary Amperex Technology Co. Ltd. (300750.SZ), the world’s largest EV-battery maker, introduced its first sodium-ion battery in 2021 and is working on a second-generation version. The company announced last year that its sodium-ion batteries would be used by Chery Automobile Co. Ltd. in their vehicles [para. 13]. Two compact EVs fitted with sodium-ion batteries started rolling off the production line of two state-owned carmakers late last year, and BYD Co. Ltd. has begun constructing a dedicated sodium-ion battery plant in Xuzhou, Jiangsu province [para. 14].