The world’s largest battery maker, CATL, is now deploying its sodium-ion battery technology in passenger cars, marking a significant step beyond its initial use in commercial vehicles. The expansion, confirmed by sources within the industry, begins with integration into models from Changan Oshan and will soon include GAC and JAC vehicles, all undergoing winter testing. This move comes as sodium-ion batteries gain traction as a cost-effective and safer alternative to lithium-ion, particularly in challenging climates.
The Rise of Sodium-Ion as a Lithium Alternative
For years, lithium-ion dominated the EV battery market. However, rising lithium prices starting in 2021 spurred innovation in alternative chemistries. CATL was a first mover, unveiling its first sodium-ion battery prototype in 2021 and officially launching the “Naxtra” brand in 2025. The company now projects large-scale deployment across battery swapping, passenger vehicles, commercial vehicles, and energy storage by 2026.
Sodium batteries solve key limitations of lithium in cold conditions. At -20°C, sodium batteries retain over 92% of their capacity, while lithium batteries drop to roughly 80%. This eliminates the need for heavy heating systems, maximizing vehicle range.
CATL’s Naxtra Tech: Safety, Performance, and Cost
CATL’s latest “Naxtra Gen 2” sodium batteries are engineered for safety. They don’t catch fire or explode even when punctured, a distinct advantage over lithium-ion. The batteries also excel in high-rate discharge, maintaining low temperatures during fast charging without the need for complex cooling systems.
The biggest draw, however, is cost. Analysts predict that as production scales to 100 GWh, sodium-ion batteries could be 30% cheaper than LFP (lithium iron phosphate) batteries. With capacity projected to exceed 200 GWh by 2030, this cost reduction will make EVs more accessible.
Why This Matters
While lithium-ion still dominates the market, sodium-ion is gaining ground. In 2025, LFP batteries accounted for 81.2% of installed capacity, but sodium is poised to carve out its own niche. The key is not direct competition, but filling gaps where sodium excels: particularly in low-temperature performance and safety-critical applications.
CATL is initially focusing on battery swapping to lower upfront vehicle costs and accelerate adoption. This approach could prove pivotal in mainstreaming sodium-ion technology.
The industry consensus is that sodium batteries are still early in their development, but offer a faster learning curve than lithium. As supply chains mature and production scales, their cost and performance will improve rapidly. The entry of sodium batteries into the passenger vehicle sector is not just a technical achievement, but a strategic move to reshape the future of energy storage.
