...lithium hodlers who plan on Buy and Hold for years into the future, would want to simply write-off sodium-ion batteries because it is convenient to do so; they may not be a short term threat to lithium but all the market needs is a narrative that they can decrease demand for lithium and they would be downgrading lithium more as a substitute emerges.
...so once again as I stated many times, EV growth does not equate with commensurate lithium demand growth and certainly does not equate with necessarily higher lithium pricing. Because all those who simplistically seek comfort that EV growth is here to stay must mean lithium demand and pricing would grow just as strong could get blindsided. As time progresses, we can only expect that the amount of lithium used per EV battery would get smaller over time.
...all the countries and lithium explorers across the globe are in the meantime seeking to increase supply because it is a 'sure thing' would in due time result in industry consolidation.
1. By the time EV growth resumes higher, more supply would be onstream
2. In 5 years time, battery technology could change so much that not only would LFP reduces NCM substantially (LFP uses less lithium) , LFP could face new competition from Na-ion battery (which uses no lithium). And according to CATL, they would be able to recycle 90% of lithium from used batteries. So where are all the lithium supplies going to despite EV growth? Other applications.
Natron Energy starts commercial-scale production of sodium-ion batteries
Natron Energy, a sodium-ion battery manufacturer, has started commercial-scale operations at its facility in Holland, Michigan.
Sodium-ion batteries offer higher power density, higher cycles, and better safety characteristics over other battery technologies, according to the company. The battery chemistry presents zero strain during charging and discharge, 10x faster cycling than traditional lithium-ion batteries and a lifespan of over 50,000 cycles.
Natron has invested over $40 million to upgrade the $300-million facility and convert existing lithium-ion battery manufacturing lines to sodium-ion battery production. ARPA-E also provided $19.8 million through the Seeding Critical Advances for Leading Energy Technologies with Untapped Potential (SCALEUP) program.
The Holland facility is projected to produce 600 MW of sodium-ion batteries annually and will serve as a blueprint for future Natron giga-scale facilities. Natron will begin battery shipments in June for data centers and then for a wide range of end markets, including industrial mobility, EV fast charging and telecom.
“Natron’s sodium-ion batteries will play a significant role in advancing large industrial and utility-scale decarbonization, including potentially at our drilling operations where Nabors is deploying various solutions to reduce fuel consumption and emissions,” said Guillermo Sierra, Vice President, Strategic Initiatives—Energy Transition at Nabors Industries.
