The Battery Revolution.
At the beginning of 2026, a transformation in the battery sector quietly arrived.
On February 5, Changan Automobile joined hands with CATL to unveil their sodium-ion battery strategy. The 'world's first mass-produced sodium-ion passenger vehicle' is set to enter the market by mid-year. As the 'exclusive partner' for Changan’s sodium-ion strategy, this deep collaboration not only signifies the strategic alignment of two industry giants at the 2026 market inflection point but also marks the official end of a decade-long laboratory incubation period for sodium-ion batteries, as they now take center stage in the mainstream passenger vehicle market.
And this is merely the beginning of the sodium-ion revolution. According to sources at Wall Street Insight, CATL aims for sodium-ion batteries to achieve parity with lithium iron phosphate batteries.
The year 2026 is widely regarded as the pivotal moment for the commercialization of sodium-ion technology. Every new vehicle equipped with a sodium-ion battery rolling off the production line represents an encroachment on existing market shares and a redefinition of the benchmarks leading toward energy independence. New energy vehicles are now entering a critical phase that emphasizes full-temperature delivery capability, supply chain resilience, and resource security.
Strategic Alliance
In the law of the commercial jungle, the term 'exclusive' often indicates a high level of consensus between parties regarding industrial trends. In this case, Changan Automobile has designated CATL as the 'exclusive partner' for its sodium-ion strategy.
In a sense, this reflects Changan Automobile’s strategic decision at the 2026 market turning point. Last year, this 'new state-owned enterprise,' which surpassed 1.1 million units in new energy vehicle sales, made its move decisively.
Tang Benhong, Deputy Secretary of the Communist Party Committee of China Changan Automobile Group, explicitly stated during discussions about the alliance: 'Changan is accelerating efforts to transition sodium-ion technology from experimentation to market application, moving from exhibition stands to actual road use. In the near future, Changan will launch entirely new, highly secure models equipped with sodium-ion batteries across multiple brands.' This statement firmly establishes Changan’s primary focus on battery selection in the coming years.
According to sources at Wall Street Insight, unlike other automakers conducting small-scale demonstration projects, Changan is making a full-fledged family-wide deployment of sodium-ion technology. Brands under its umbrella, including Avita, Deep Blue, Qiyuan, and Gravity, will all adopt CATL’s sodium-ion 'Naxin' batteries. Additionally, the world’s first mass-produced sodium-ion passenger vehicle will be launched in the market by mid-2026.
In terms of specific parameters, the cell-level energy density of the 'Naxin' battery being installed reaches up to 175Wh/kg, currently the highest level of mass-produced batteries in the industry. Passenger vehicles equipped with this battery can achieve a pure electric driving range exceeding 400 kilometers. In extreme cold conditions, it maintains over 90% capacity retention at -40°C and remains capable of stable discharge at -50°C. Furthermore, at -30°C, its discharge power is nearly three times higher than that of conventional lithium iron phosphate batteries. This implies that even at -40°C, there is no need to preheat the battery, thereby conserving electricity. Additionally, under extreme tests such as nail penetration, compression, or sawing when fully charged, the battery does not catch fire or explode.
Gao Huan, Chief Technology Officer of CATL, revealed to Wall Street News, "In the future, the pure electric range of sodium-ion batteries can be upgraded to 500km or even 600km, and the extended range can exceed 300km or even reach 400km, covering more than 50% of the market's range demands."
This also reflects CATL’s ambition. As Gao Huan put it, "Lithium batteries are our first child, while sodium-ion batteries are another." The parallel development of these two "children" provides stronger resilience to the industry.
The upcoming debut of the 'world's first mass-produced sodium-ion battery passenger vehicle' signifies that CATL's strategic layout for sodium-ion batteries this year has entered a critical phase.
At the end of last year's CATL Supplier Conference, CATL explicitly stated that by 2026, sodium-ion batteries would be applied on a large scale in areas such as battery swapping, passenger vehicles, commercial vehicles, and energy storage.
Gao Huan also admitted that the scaled application of sodium-ion batteries in certain fields to replace lithium batteries marks the beginning of an overall energy restructuring.
According to CATL’s expectations, sodium-ion batteries are expected to replace lithium iron phosphate batteries, and with the scaled mass production of sodium-ion batteries, their costs will gradually equal those of lithium iron phosphate batteries, thereby achieving about a 50% replacement of the market share of lithium iron phosphate batteries.
Breakthrough Year
If the collaboration between Changan and CATL represents a 'point breakthrough,' then the entire industry’s accelerated progress in sodium-ion batteries signifies an 'expansion across the board.'
Over the past few years, the lithium battery supply chain has suffered greatly from fluctuations in the price of lithium carbonate. Although lithium prices experienced volatility in 2025, some battery-grade lithium carbonate quotes rebounded nearly 20% within one month, reflecting structural supply-demand tensions caused by the dual surge in new energy and energy storage. Moreover, China’s external dependence on lithium resources is as high as 80%, with 80% of lithium ore imports coming from abroad—a 'resource vulnerability' that looms over all automakers.
By contrast, the abundance of sodium in the Earth's crust is 1,200 times that of lithium, and its distribution is extremely widespread. Senior analysts told Wall Street News that the significance of sodium-ion batteries does not lie in 'completely replacing lithium batteries,' but in providing an alternative solution capable of mitigating cyclical fluctuations, thus ensuring a dual-material supply insurance.
Zhao Ruirui, Dean of EVE Energy's Central Research Institute, also told Wall Street Insight that at this stage, sodium-ion batteries and lithium-ion batteries remain complementary. The advantages of lithium-ion products have already been established, and currently, sodium-ion batteries are mainly used in specific scenarios to complement lithium-ion.
From an industry perspective, in addition to the light truck market, A00-level and A0-level passenger vehicles—markets with low requirements for driving range but high sensitivity to price—have also become the main battleground for battery manufacturers.
Currently, the sodium-ion battery industry chain is at a critical juncture transitioning from 'small-scale trials' to 'tens of thousands of tons.' In 2025, China's total production of sodium-ion cathode materials will be only 11,000 tons, but according to industry research, by 2026, the landed capacity of sodium-ion cathode materials is expected to surge to over 120,000 tons.
This tenfold growth is the result of the combined efforts of major giants. BYD's subsidiary FinDreams Battery has signed a multi-billion-dollar sodium-ion battery project in Xuzhou, with an annual capacity of 30GWh, explicitly targeting the micro-car and low-speed electric vehicle markets. Zhongke HaiNa released the world’s first sodium-ion battery commercial vehicle solution in 2025, with cell energy density exceeding 165Wh/kg, successfully installed on a 49-ton fully electric tractor truck branded Jinlong, marking sodium-ion technology's entry into large-scale logistics. Other second-tier players like Guoxuan High-Tech and Veken Technology have also initiated GWh-scale mass production lines.
CATL’s moves are even more aggressive. In addition to rolling out batteries for commercial vehicles, passenger cars, and energy storage-specific sodium-ion products, it is also accelerating the construction of its charging network. The company aims to deploy over 3,000 Chocolate Swap Stations nationwide by 2026, with more than 600 stations planned in Northern provinces such as Beijing-Tianjin-Hebei and Heilongjiang-Jilin-Liaoning, to address the issue of frequent charging caused by sodium-ion batteries’ relatively lower energy density.
This also implies that the application structure of China's sodium-ion battery market will shift as leading battery manufacturers like CATL deepen their deployments, moving from being primarily dominated by energy storage (accounting for about 55% in 2025) to gradually expanding into the power battery sector, supported by lightweight mobility and start-stop power applications (combined accounting for approximately 34%).
Looking further ahead, data revealed by industry analysts shows that by 2030, the global sodium-ion battery market will see sodium-ion power batteries (410GWh) rapidly closing in on energy storage batteries (580GWh), positioning sodium-ion batteries alongside lithium-ion batteries as mainstream solutions.
High-quality development in the industry has never been about one replacing the other but rather about mutual empowerment and upgrades. Lithium-ion batteries opened the chapter of electrification, while breakthroughs in sodium-ion technology have endowed this transformation with greater resilience and broader horizons. On the real battlefield of resource security and cost efficiency, the era of dual dominance by sodium and lithium has already arrived.
