At the end of March 2025, BYD released its 2024 annual report, revealing that its sodium-ion battery cells have a cell capacity of 200Ah and a cycle life of more than 10,000 times, which is better than existing lithium batteries in terms of safety, power, high and low temperature stability, etc. This breakthrough has not only attracted widespread attention in the market, but also focused the industry's attention once again on the new track of "sodium electricity", which is accelerating commercialization. Will the battle between BYD and CATL in the battery field change due to the arrival of sodium electricity? Next, the editor of China Exportsemi will interpret it for you from multiple aspects.
Figure: 200Ah+10000 cycles! Can BYD's hard-core sodium battery shake the throne of CATL?
Ⅰ Sodium electric technology breakthrough: BYD has taken a decisive step
The 200Ah and 10,000 cycle performance disclosed by BYD this time is the top level of global sodium-ion battery technology in public information. In contrast, the cycle life of mainstream lithium batteries is mostly concentrated between 1000~3000 times, and rarely exceeds 5000 times.
Figure 1: Comparison of key performance of sodium-ion battery vs lithium battery (unit: Wh/kg, times, °C)
In terms of adaptability to high and low temperatures, BYD sodium batteries have stable performance in extreme cold (-40 °C) and high temperature (80 °C), which fills the battery life and safety shortcomings of lithium batteries in harsh environments.
In addition, in terms of system integration, BYD has completed the deployment and application of MWh-level sodium-electric energy storage systems. The related products are led by the research and development of Fodi Battery, which has continued to promote the large-scale implementation of sodium electricity since 2022. Including cooperation projects with Sodium Innovative Energy, Huaihai Holdings, and the "Shenzhen Sodium-ion Battery and Key Materials Engineering Research Center" filed in 2024, BYD has completed a complete closed loop from laboratory verification, industrial collaboration to demonstration and landing.
Ⅱ The resource advantage is superimposed on the cost structure, and sodium electricity is the first choice for energy storage
The cost of mining and processing lithium resources is rising year by year, making it a consensus in the industry to find more cost-effective alternative technologies. The wide distribution and sufficient supply of sodium resources are the natural advantages of sodium-ion batteries.
Figure 2: Closed-loop layout of BYD's sodium battery industry chain
Thanks to cost-effective material selection and process optimization, BYD's sodium electricity cost has been reduced to 60%~70% of lithium batteries of the same specification. This makes it particularly suitable for large-scale energy storage systems with cost-sensitive but high capacity requirements and the A0 and below electric vehicle market.
Ⅲ Industrial acceleration: who can take off at the sodium electric tuyere?
According to the data, as of the first quarter of 2025, the total investment in China's sodium-ion battery industry has exceeded 20 billion yuan, and the total planned production capacity is about 80GWh, accounting for 75% of the world's new production capacity.
Figure 3: Comparison of the technical route and progress of sodium electricity of mainstream manufacturers
BYD proposed to increase its sodium production capacity to 100GWh by 2026, which is enough to support 2 million A0/A00 new energy vehicles. In contrast, CATL is still dominated by lithium batteries, and sodium electricity is still in the demonstration stage.
Ⅳ From the wind farm to the island: the demonstration effect of sodium electricity is gradually emerging
BYD's sodium battery system has been actually operated in Inner Mongolia, Zhejiang and other places. For example, in a wind power project in Inner Mongolia, the curtailment rate dropped from the industry average of 6.8% to 1.2%, and the annual utilization hours of the system increased to 2,800 hours.
In the Zhejiang Island project, BYD deployed a "wind power + sodium storage" microgrid system to achieve 100% clean energy power supply, and the system revenue was obtained through participating in power auxiliary services, covering equipment depreciation and generating positive cash flow, which preliminarily verified the commercial viability.
Figure 4: Sodium battery application scenario matrix
Ⅴ Competitor anxiety: Can CATL catch up?
As the leader of global power batteries, CATL's sodium electricity progress is still in the stage of "pre-research + small batch". In 2021, its first sodium battery was announced to have an energy density of 160Wh/kg, and in 2023, it announced that the second generation will be increased to 200Wh/kg, and it plans to install it in two-wheeled electric vehicles in 2025.
However, in the energy storage market and the low-end vehicle market, BYD has shown a "first-mover dividend" by virtue of its system integration capabilities and manufacturing scale.
Figure 5: Regional distribution of global sodium battery investment (2023Q4)
Ⅵ Conclusion: Will sodium batteries rewrite the industrial pattern?
Although sodium batteries are still inferior to lithium batteries in terms of energy density, their advantages in cost, safety, resource security and service life make them one of the most feasible alternatives in the energy storage and mid-range markets.
BYD's technological achievements announced this time not only reshape the market confidence of sodium electricity, but are more likely to pose a structural challenge to lithium battery giants such as CATL. In the wave of global new energy transformation, sodium batteries are expected to become the "second technology path".
