CATL expands into sodium batteries with new deal

CATL said it signed a three-year agreement to supply 60 gigawatt-hours of sodium-ion batteries to Beijing HyperStrong Technology, a Chinese power equipment maker, in its first strategic partnership for the chemistry.

The company plans to start mass production of sodium-ion batteries in the fourth quarter of 2026.

Sodium-ion batteries use sodium instead of lithium, and the International Energy Agency has said 2026 could be a turning point for the technology as it starts to take some demand from lithium-ion batteries.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

CATL’s sodium-ion bet rests on years of spending and easy fit

CATL has spent nearly 10 billion yuan (US$1.5 billion) on sodium-ion research and development since 2016 1.
Its storage cell is a 300-plus ampere-hour large-format battery with about 160 watt-hours per kilogram. It runs from -40°C to 70°C 2.
CATL gave its sodium-ion cells the same enclosure dimensions as its lithium-ion products. That cuts adaptation costs for partners such as Beijing HyperStrong Technology, the Chinese power equipment maker in the agreement 3.
Sodium-ion still lacks a near-term price edge. Lithium iron phosphate (LFP), a lower-cost lithium-ion chemistry, is in oversupply and has dropped below US$50 per kilowatt-hour 4.

The agreement adds a new layer to energy storage competition

The phrase “DeepSeek moment” has been used for this agreement, a nod to China’s AI startup DeepSeek. It suggests a manufacturing breakthrough that could lower storage costs worldwide 5.
Sodium offers cover against lithium price swings and geopolitical risk. Sodium feedstocks are widely available, while Chinese firms control much of the lithium-ion supply chain 4.
Sinopec, China’s state-backed oil and chemicals group, and LG Chem expect China to account for more than 90% of global sodium-ion battery production by 2030 4.
The agreement centers on grid storage. CATL is also moving into passenger vehicles with Changan Automobile, the Chinese carmaker. In February 2026, the pair unveiled what they called the world’s first mass-produced sodium-ion passenger vehicle project, with a market launch expected in mid-2026 3.