Sodium Ion Battery Market Research, 2031
The global sodium ion battery market size was valued at $0.3 billion in 2021, and sodium ion battery industry is projected to reach $1.2 billion by 2031, growing at a CAGR of 15.9% from 2022 to 2031.
Key Report Highlighters:
- The report depicts detailed insights on the sodium ion battery industry trends and new growth opportunities.
- The report provides complete analysis on the market status across key regions and more than 15 countries across the globe in terms of value ($ Million).
- The report identifies the sodium ion battery market growth segments and emerging application areas.
- The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
- The report facilitates strategy planning and industry dynamics to enhance decision making for existing market players and new entrants entering sodium ion battery industry.
Sodium ions are a highly active and efficient charge carrier, making sodium ion batteries a viable power storage option. Reversibility, good electrochemical properties, fast responsiveness, and other attributes distinguish sodium-ion batteries. Electrolyte material, barrier material, encapsulating material & separators, and other materials are the primary raw materials used in sodium-ion batteries. Sodium ion batteries are widely used in LED flashlights by electronics end consumers. Furthermore, sodium ion batteries are rapidly being employed for power storage applications in a variety of end-use sectors, ranging from household electrical and electronics to industrial and automotive. Given the importance of these applications and the relative ease of production, demand for sodium ion batteries is likely to rise throughout the projection period, offering considerable growth possibilities for manufacturers worldwide.
The rise in demand for renewable energy has fueled the growth of energy storage services. The rapidly expanding market share of renewable energy in the power-generating industry has increased the demand for low-cost batteries. The pandemic has triggered renewable energy reforms and policies encouraging the building of renewable power facilities. The major industrialized and developing countries have established many objectives to reach zero emissions by 2050, which are expected to aid the expansion of the solar, wind, and electric car sectors. According to the IEA, renewable energy has shown promising growth in recent years and is anticipated to grow by more than 10% by 2022. As a result, worldwide carbon emissions from the electricity industry have decreased little. In 2019, the world added a record 295 gigatons of extra renewable energy capacity.
Furthermore, the increased building of offshore wind power facilities throughout the world has aided the development of the sodium-ion battery industry. Furthermore, the fast expansion in renewable energy output throughout the world has put a strain on power distribution, driving up demand for sodium ion batteries. The presence of the variables is anticipated to accelerate the global expansion of the sodium ion battery market.
Manufacturing sodium ion batteries for electric cars necessitates a large initial investment as well as costly continuing R&D operations, limiting the market's entry of new companies. This is anticipated to have a negative impact on the worldwide automotive sodium ion battery industry. Governments have established tough standards for producing batteries for electric cars, which is expected to hinder the global industry. Furthermore, the automotive sodium ion battery industry is projected to be hampered by high import tariffs on electric car batteries and the volatility of raw material costs.
Sodium ion batteries (SIBs) have drawn a lot of attention as potential lithium-ion battery substitutes owing to the copious availability of raw ingredients and low cost. Significant improvements in the manufacturing of SIBs with exceptional cycle stability and high-rate performance have been accomplished in recent years via intensive investigation of the sodium storage mechanism and the development of innovative electrode and electrolyte materials.
Declining electrochemical performance as a result of growing demand for grid-scale energy storage, space exploration, and national security applications is the primary issue for SIBs at low temperatures. The low conductivity of the electrolyte, the decreased rate of ion diffusion in the active materials, and the decreased rate of charge transfer at the electrode/electrolyte interface are the factors that affect SIBs' poor performance at low temperatures. During the anticipated period, the aforementioned factor is anticipated to restrain the growth of the sodium ion battery market.
North America: Key Region of Investment for Manufacturers
The North American region is expected to witness significant growth at a CAGR of 15.9% through the forecast period. In the U.S., sodium ion battery manufacturer Natron Energy and Clarion, a producer of low-voltage battery technologies for mobility, are collaborating on the production of sodium ion batteries. The Clarios facility in Meadowbrook, Michigan, is expected to become the largest sodium ion battery manufacturing facility in the world when volume production begins in 2023. The project has been supported by the U.S Department of Energy’s ARPA-E agency through the SCALEUP program. The mass production of sodium ion cells should be made possible with new cell assembly equipment in the Clarios Meadowbrook plant. In addition, the rising adoption of electric cars and solar & wind power projects in this area, North America is expected to see significant growth during the forecast period. One of the fastest-growing renewable energy technologies is wind power.
Assessing the need for battery recycling and second-life applications
- As India embarks on the journey of decarbonising its vehicle fleet by transitioning towards EVs, the government and industry need to gear up and plan for repurposing or recycling these EV batteries, as these batteries last for (in EVs) ~5 years. Even if these batteries fall short of the high-performance requirement of powering electric motors in EVs, a considerable amount of second life remains in such batteries. These retired batteries can be either repurposed for a second life in alternate applications or recycled to recover raw materials.
- Loss of battery capacity limits the driving range of the electric car and declared to be unfit for use in EV anymore. These batteries are expected to retain ~70 percent of their initial capacity and could provide adequate capacity for less demanding applications in their “second life”.
- As new technology evolves in India; lithium-ion batteries will be in demand in the near future. Lithium Nickel Manganese Cobalt (NMC) oxide and lithium Iron Phosphate (LFP) chemistries are the most popular for commercial use.
- In addition to a high percentage of heavy metals (such as copper, nickel, and lithium), organic chemicals and plastics present in the battery have a high chance of contaminating soil and water, if not disposed appropriately. Incinerating lithium-ion batteries releases toxic gases, resulting in air pollution.
- High-value metals, such as cobalt and nickel, are concentrated and found in select regions of the world. Hence, recycled and extracted metals provide a substantial cost advantage to battery OEMs as well as additional security from supply disruptions.
The sodium ion battery market forecast is segmented on the basis of application, end-use, and region. On the basis of application, the market is fragmented into residential, commercial, and industrial. In addition, on the basis of end-use, the market is classified into stationary energy storage and transportation. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Europe accounts for the largest sodium ion battery market share, followed by North America, Asia-Pacific, and LAMEA.
Industrial segment to be the dominating segment till 2031
The industrial segment dominates the global sodium ion battery market. Sodium ion batteries have a wide range of applications in energy storage devices, which are used for backup power supply in manufacturing industries. In addition, it is widely used in large-scale renewable power generation utilities across the globe. Power and Energy industries play a vital role in the modernization and industrialization of human civilization. The electric power industry covers the generation, transmission, distribution, and sale of electric power to the general public and industry. The increase in the demand for energy and rapidly growing power consumers in this society are the major factors driving the growth of the power and energy sector. The increase in temperature due to global warming has led major developed and developing countries to phase out thermal power plants and invest in renewable energy sources. The sudden increase in renewable energy power generation in China has put a great load on the energy transmission and distribution system, which led to the application of batteries to store the excess power. The above-mentioned factors are expected to provide ample opportunities for the development of the market during the forecast period.
By End Use
Stationary Energy Storage to possess highest market share till 2031
The stationary energy storage segment dominates the global sodium ion battery market. A stationary energy storage device can store energy and discharge it in the form of electricity. An array of batteries, an inverter, an electronic control system, and a thermal management system are often included in a stationary energy storage system. Unlike a fuel cell, which creates power without having to be charged, energy storage systems must be charged in order to deliver electricity when it is required. Battery storage systems are essential for ensuring a constant and reliable power source. It has become one of the most essential options for properly integrating large amounts of solar and wind renewables into power grids around the world. They are used in a variety of industries to provide superior connection and energy storage. High-capacity batteries are used as a backup source to ensure the electrical grid’s stability and to provide electricity during power outages. The increasing global use of renewable energy sources, combined with severe government laws aimed at reducing carbon emissions is expected to drive product adoption during the projected period. The above-mentioned factors are anticipated to provide ample opportunities for the development of the market during the forecast period.
Europe segment dominated the global sodium ion battery market. Germany, Italy, and the UK are the countries in Europe that use the most solar and wind energy. Europe is a well-developed country with stringent regulations regarding environmental pollution. These stringent regulations regarding the reduction of carbon footprint across the continent and rapid development in recent years which lead to surpassing expectations in terms of steep cost reduction, user-friendliness, and manifold applications in a variety of sectors have fueled the manufacturer to expand their manufacturing capabilities. In addition, Europe is anticipated to witness a high growth rate for the electric vehicle sector in the automotive industry during the forecast period, due to a rise in demand for electric vehicles across the region. The above factors drive the growth of the sodium-ion battery market in this region during this forecast period.
Impact of Covid-19 on Global Sodium Ion Battery Market
During the pandemic, there was a high demand for stationary energy storage devices as most people were working from home, which led to the demand for the UPS system that created a huge demand for the sodium-ion battery market. The shutdown of industrial facilities across the globe has led to delays in the construction of solar and wind power plant facilities, which have led to a decline in the demand for stationary energy storage devices manufactured using sodium-ion batteries during the COVID-19 outbreak.
The demand for fossil-based energy resources has decreased significantly, while the demand for renewable energy resources has grown significantly. Although renewable energy sources have significant advantages in areas such as carbon emission, they need energy storage systems with large capacities due to the significant relationship between air exchange and their efficiency. The changes in renewable energy demand significantly affect energy storage technologies. The presence of the above-mentioned demand for energy storage devices in renewable power plants is anticipated to provide lucrative opportunities for the development of the market.
The major companies profiled in this report CATL, Faradion, Natron Energy, HiNa Battery, Ronbay Technology, Zoolnash, Natrium, Kishida Chemical, Panasonic, and Mitsubishi Chemical. An increase in the demand for eco-friendly power generation has led to an increase in investment in solar and wind power plants which led to an increase in the demand for low-cost and stable batteries. Further growth strategies such as an expansion of storage capacities, acquisition, partnership, and research & innovation in the optimization and improvement in the efficiency and reliability of sodium-ion batteries have led to attaining key developments in the global sodium ion battery market trends.
Key recommendations for manufacturers:
- Automakers should design their EVs with second life applications in mind, thereby pushing standardization and safety regulations. For example, Japan’s first plant specializing in the reuse and recycling of lithium-ion batteries from EVs will be operated by a joint venture between a Japanese multinational automobile manufacturer and leading Japanese corporation (with a diversified portfolio in metal products and equipment business value chain).
- Scaling up recycling and refurbishment units is expected to achieve cost efficiencies and protect them from the falling costs of new lithium-ion batteries. Setting a 10,000 MT mark for centralized recycling plants is a positive step in that direction.
- Providing clarity on the minimum capacity for setting up a battery recycling plant in terms of black mass requirement or battery capacity would be useful for battery recyclers.
- Coordinated efforts of OEMs, various industry bodies, and associations, second-life refurbishment units, etc., in setting performance and safety standards, and classifying battery based on these standards will create the necessary transparency to spur demand.
- Establish Extended Producer Responsibility (EPR) to ensure battery manufacturers (include EV suppliers) are responsible for recycling batteries they have sold.
- Develop new business models to fully capture the value at hand. For example, a French multinational automobile manufacturer engages in both recycling and reuse of battery.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the sodium ion battery market analysis from 2021 to 2031 to identify the prevailing sodium ion battery market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the sodium ion battery market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global sodium ion battery market trends, key players, market segments, application areas, and market growth strategies.
Sodium Ion Battery Market Report Highlights
Market Size By 2031
USD 1.2 billion
CAGR of 15.9%
2021 - 2031
By End Use
Key Market Players
Natrium Energy, Natron Energy, faradion limited, HiNa BATTERY, Zoolnasm, Mitsubishi Corporation, Panasonic Corporation, CATL, Kishida Chemical, Ronbay Technology
According to CXO perspective, the global sodium ion battery market is expected to witness increased demand during the forecast period. The surge in investment to develop solar and wind power generation infrastructure has led to increasing demand for energy storage devices, which has a positive impact on market growth.
Sodium ion batteries (SIB) are rechargeable batteries in which the charge carriers are sodium ions. Since sodium ions are good charge carriers, sodium ion batteries are a good energy storage option to lithium-ion batteries.
The sodium ion batteries are used in energy storage applications in solar and wind renewable energy plants. It is used for powering electric vehicles such as electric bikes and e-scooters. It is used for storing energy in grids and powering electric vehicles. It is considered to be an efficient replacement for lithium-ion batteries. The abundant availability of sodium compared to that of lithium, and the reduction in the cost of manufacturing the sodium ion battery. Owing to the above-mentioned factors, the sodium ion battery market is expected to grow at a significant rate in the forecast period.
The global sodium ion battery market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Among the analyzed regions, Asia-Pacific is likely to account for the fastest-growing market throughout the forecast period, followed by LAMEA, North America, and Europe. Asia-Pacific hosts some of the fastest developing countries such as China and India. The presence of a huge population and rapid industrialization in these countries have increased the demand for electricity from renewable resources. The presence of demand for renewable energy in this region, government initiatives, and investment to develop electric buses, which are powered by sodium ion batteries in this region have led to the presence of significant importance of the sodium ion battery market.