BUSINESS

CATL to Roll Out Sodium-Ion Batteries in 2026 to Cut Lithium Reliance

Published: Dec. 30, 2025 4:56 p.m. GMT+8

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Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ) plans to mass deploy sodium-ion batteries across its product lines starting in 2026, a pivot designed to reduce reliance on lithium as pricing disputes roil the electric vehicle (EV) supply chain.

The global battery giant confirmed the plan to Caixin on Monday following a supplier conference, positioning the lower-cost technology as a viable alternative for passenger cars, commercial vehicles, and energy storage. The move comes as surging raw material costs and contentious pricing mechanisms trigger production halts among midstream manufacturers, threatening the stability of the sector’s ecosystem.

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CATL plans to mass deploy sodium-ion batteries from 2026 to reduce reliance on lithium amid volatile pricing and supply chain tensions.
Lithium carbonate prices in China rose 47.7% in 2025, with major suppliers and cathode manufacturers clashing over pricing benchmarks and pausing production due to margin pressures.
CATL remains the market leader globally (38.1% share in Jan–Oct 2025) and in China (42.9% through November), but faces increasing competition and market uncertainties.

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Who’s Who

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) is a global battery giant with a 38.1% international market share. They plan to mass deploy sodium-ion batteries across their product lines by 2026 to reduce reliance on lithium and control costs. This pivot is a strategic move to address surging raw material prices and pricing disputes within the EV supply chain.

Tianqi Lithium Corp.: Tianqi Lithium Corp. is a major raw material supplier in the battery industry. They declared they would stop using Shanghai Metals Market's (SMM) pricing benchmarks for lithium carbonate, referencing higher quotes from other exchanges due to perceived deviations from fair value. This decision has contributed to ongoing pricing disputes and supply chain tensions.

Hunan Yuneng New Energy Battery Material Co. Ltd.: Hunan Yuneng New Energy Battery Material Co. Ltd. (301358.SZ) is one of four major cathode manufacturers that announced a one-month production halt for maintenance starting December 25 or 26. This company is a key supplier for both CATL and BYD Co. Ltd.

Hubei Wanrun New Energy Technology Co. Ltd.: Hubei Wanrun New Energy Technology Co. Ltd. (688275.SH) is a cathode material producer. The company, alongside other major cathode manufacturers, announced a one-month production halt for maintenance, starting December 26. This coordinated shutdown is attributed to razor-thin margins in the industry.

Shenzhen Dynanonic Co. Ltd.: Shenzhen Dynanonic Co. Ltd. is one of four major cathode manufacturers that announced a one-month production halt for maintenance, starting alongside its rivals on December 25 or 26. This coordinated shutdown is described as a rare move driven by necessity due to thin margins amid rising raw material costs.

Guizhou Anda Energy Technology Co. Ltd.: Guizhou Anda Energy Technology Co. Ltd. is one of four major cathode manufacturers that announced a one-month production halt for maintenance starting December 25th or 26th. This coordinated shutdown is described as a rare move driven by necessity due to razor-thin margins.

BYD Co. Ltd.: BYD Co. Ltd. (比亚迪股份有限公司) is a significant customer of Hunan Yuneng New Energy Battery Material Co. Ltd. This highlights its role in the electric vehicle supply chain and its reliance on key battery material suppliers.

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What Happened When

2021：: CATL introduced its first-generation sodium-ion battery.

First 10 months of 2025：: CATL held a 38.1% share of the international battery market.

First 11 months of 2025：: Lithium-based chemistries accounted for nearly 100% of battery installations, with non-lithium alternatives making up just 0.02%.

2025：: Prices for battery-grade lithium carbonate in China increased 47.7% and are up 84.9% from mid-year 2025 lows.

Through November 2025：: CATL held a 42.9% share of the domestic battery market, a 2.1 percentage point decrease year-on-year.

Week of December 23, 2025：: Tension in the battery supply chain escalated due to pricing disputes.

December 24, 2025：: SMM quoted lithium carbonate at 101,500 yuan ($14,500) per ton; alternative agency quotes ranged from 116,000 yuan to 121,000 yuan.

December 25 and 26, 2025：: Four major cathode manufacturers announced one-month production halts for maintenance.

December 26, 2025：: SMM defended its lithium carbonate price methodology publicly.

By December 29, 2025：: SMM’s price range for battery-grade lithium carbonate reached 118,000 yuan to 120,000 yuan per ton.

Monday, December 30, 2025：: CATL confirmed its plan to mass deploy sodium-ion batteries starting in 2026 after a supplier conference.

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