Sodium-Ion Battery Market 2025 - Growth Outlook, CATL Naxtra Launch & Lyten Acquisition

The Sodium-Ion Battery Market is poised for rapid growth, with the global market valued at USD 860.2 million in 2023 and projected to reach USD 4,005.2 million by 2031, reflecting a CAGR of 21.2% from 2024 to 2031. This expansion is driven by the cost-effectiveness of sodium-ion technology, as sodium is abundant and less expensive than lithium, cobalt, and nickel, making these batteries a more affordable alternative. Rising demand from industrial applications, including data centers, telecom, and grid storage, coupled with increasing investments in research and development, positions sodium-ion batteries as a critical component in the global shift toward cost-efficient, sustainable energy storage systems.

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Latest Developments in the Sodium-Ion Battery Market

In August 2025, CATL Launches Naxtra Sodium-Ion Battery: CATL, China's leading battery manufacturer, has introduced its sodium-ion battery brand, Naxtra. The company plans to commence mass production of Naxtra batteries in December 2025. These batteries are designed to operate efficiently across a wide temperature range from -40°C to +70°C, offering an energy density of 175 Wh/kg. The Naxtra batteries aim to provide electric vehicles with a driving range of up to 500 km on a single charge.

In July 2025, Sodium-Ion Battery Cathode Material Production Trends: In July, the production of sodium-ion battery cathode materials experienced a slight month-over-month decrease of 1%. However, the year-over-year increase remained significant at 111%. Notably, the proportion of polyanion-type NFPP in total production rose to 69%, up 2 percentage points from the previous month. This shift indicates a growing preference for NFPP over layered oxide (O3-type) materials.

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Strategic Partnerships and Advancements in the Sodium-Ion Battery Market

In August 2025, Lyten, a U.S.-based battery startup, announced plans to acquire Northvolt's key assets, including its Skellefteå gigafactory and energy storage unit in Poland. This strategic move aims to revitalize Europe's battery manufacturing capabilities and expand Lyten's presence in the sodium-ion battery sector.

In July 2025, Sensata Technologies completed the acquisition of Dynapower, a provider of energy storage solutions, for approximately $580 million. This acquisition enhances Sensata's product offerings in battery charging and energy management, aligning with the growing demand for sodium-ion battery solutions.

In July 2025, Hero MotoCorp launched the VIDA VX2 electric scooter with a Battery-as-a-Service (BaaS) subscription model. This initiative allows customers to subscribe to batteries instead of purchasing them outright, reducing the upfront cost of electric vehicle ownership and promoting greater adoption of electric mobility solutions.

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Sodium-Ion Battery Market Trends and Growth Opportunities 2025

The sodium-ion battery market is witnessing strong growth driven by cost efficiency, as these batteries are more affordable than lithium-ion alternatives, sustainability, due to abundant and environmentally friendly sodium, and enhanced safety, with better thermal stability and lower risk of thermal runaway. Key growth opportunities include stationary energy storage for grid-scale applications, expanding use in electric vehicles as technology advances, and versatile industrial applications requiring large-scale energy storage. With ongoing R&D and increasing adoption, sodium-ion batteries are poised to become a competitive, eco-friendly alternative in the global energy storage landscape.

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