Chinese energy-storage company unveils a sodium-ion system designed for long-term grid applications as the global market looks beyond lithium batteries.
By Zheng Xin
SHANGHAI — The next phase of the global energy-storage race may depend on a battery technology that is more abundant than lithium but has yet to achieve the same level of commercial scale.
Hithium Energy Storage, a major Chinese manufacturer of energy-storage systems, has unveiled a new sodium-ion battery solution designed specifically for large-scale power storage.
The company says the system is expected to enter full-scale production and commercial delivery in 2027, with a designed service life of up to 30 years.
That figure is significant because utility-scale energy-storage projects are increasingly being viewed as long-term infrastructure rather than simply as large battery installations.
Why sodium matters
Lithium-ion batteries currently dominate the global battery industry, from electric vehicles to grid storage. But growing demand for batteries has also intensified concerns about the availability, cost and geographic concentration of some raw materials.
Sodium offers a potential alternative.
Unlike lithium, sodium is widely distributed and relatively abundant. Hithium says this could help strengthen resource security and make battery supply chains less dependent on particular sources of raw materials.
Yi Ziqi, Hithium’s chief technology officer, said the economics and availability of resources would be critical to the widespread adoption of energy-storage technologies.
The company is targeting a cost level comparable with lithium-based systems, using a lithium carbonate price of 150,000 yuan ($22,365) per metric ton as its benchmark.
Whether sodium-ion batteries can achieve sustained cost competitiveness at commercial scale will depend on manufacturing efficiency, material costs, energy density, cycle life and the specific requirements of each application.
From laboratory technology to infrastructure
Hithium’s new system represents more than a new battery chemistry.
The company is attempting to build an integrated sodium-ion supply chain covering materials, battery manufacturing and complete energy-storage systems.
Wang Shiwen, head of the Hithium Battery Research Institute, said the company was essentially rebuilding the technological pathway that the lithium-battery industry developed over several decades.
“Starting from the fundamental chemical inputs, we are re-walking the path the lithium battery industry took in more than 30 years,” Wang said.
Hithium argues that the long service life of its new system could also change how large-scale storage projects are financed and evaluated.
If storage equipment can operate over periods comparable with other grid infrastructure, developers may be able to assess projects using longer-term infrastructure investment models rather than treating batteries primarily as short-lived equipment.
A rapidly expanding storage market
The timing of Hithium’s announcement reflects the rapid growth of energy storage in China.
According to figures cited from China’s National Energy Administration, the country’s cumulative installed capacity of new energy storage reached 136 gigawatts by the end of 2025.
That was an 84 percent increase from the previous year and roughly 40 times the level recorded in 2020.
China’s installed new-energy-storage capacity passed the 100 GW mark for the first time in 2025, surpassing the country’s traditional pumped-hydro storage capacity.
The expansion is closely linked to the growth of renewable energy.
Solar and wind power can produce large amounts of electricity, but their output varies according to weather and time of day. Energy-storage systems can absorb electricity when renewable generation is high and release it when demand increases or renewable output falls.
In 2025, China’s new energy-storage facilities absorbed more than 30 billion kilowatt-hours of renewable electricity, according to the cited government data.
The utilization of storage facilities also increased. Average annual equivalent utilization hours rose to 1,195 hours in 2025, compared with 911 hours in 2024.
During periods of high summer electricity demand, centralized storage facilities in Jiangsu and Shandong provinces reached peak discharge outputs of 7.14 GW and 8.04 GW, respectively.
The figures illustrate a broader change in the role of batteries: storage is increasingly being used as part of the power system itself rather than simply as a demonstration technology.
Multiple technologies for a changing grid
Sodium-ion batteries are unlikely to replace lithium-ion technology across every application.
Instead, the emerging energy-storage market is expected to involve several battery chemistries and storage technologies, each suited to different requirements.
Lithium-ion batteries offer high energy density and a mature global supply chain. Sodium-ion technology may have advantages in resource availability and potentially in cost, depending on future manufacturing scale.
Other technologies, including pumped hydro, flow batteries and other long-duration storage systems, will also remain part of the energy mix.
The key question for utilities and project developers is therefore not simply which battery is “best,” but which technology provides the appropriate combination of cost, durability, safety, performance and resource availability for a particular grid application.
Beyond the power grid
Hithium plans to extend its sodium-ion technology beyond utility-scale storage.
The company says the technology could eventually be used in commercial and industrial facilities as well as residential applications.
Such systems could support businesses seeking backup power, help manage electricity demand and enable greater use of on-site solar generation.
The broader objective is to create an energy-storage ecosystem covering multiple applications rather than relying on a single market.
Storage becomes a strategic part of the energy transition
The rapid deployment of renewable power is changing the requirements of electricity networks around the world.
As the share of solar and wind generation rises, grids need additional flexibility to balance fluctuations in supply and demand.
Energy storage can provide several functions, including frequency regulation, peak shaving, renewable-energy integration and backup power.
Zhu Gongshan, chairman of GCL Group, has argued that storage combined with microgrids and vehicle-to-grid systems is becoming an important component of grid resilience.
For Hithium, sodium-ion technology represents an attempt to position itself for this next stage of the market.
The company has already established a significant position in global energy-storage battery shipments and is now extending its manufacturing and engineering capabilities beyond lithium-based systems.
The real test will come when sodium-ion technology moves from product launch to large-scale commercial operation.
If manufacturers can combine long service life, competitive costs and reliable performance with a secure supply of raw materials, sodium-ion batteries could become an important part of the global energy-storage landscape.
For utilities and energy developers facing a rapidly changing electricity system, the emergence of sodium-ion technology adds another option to an increasingly diverse battery market.