Several US-based battery manufacturers are pursuing sodium ion technology as an alternative to lithium ion batteries, seeking to establish domestic production and reduce dependence on Chinese supply chains. San Diego-based Unigrid sells residential energy storage systems and has reported increased European demand during hot weather, with plans to ship thousands of units before year’s end. The company’s sodium ion batteries currently use cells manufactured in China but may eventually source domestically.
Sodium ion batteries offer potential advantages over traditional lithium ion technology, including lower manufacturing costs, reduced fire risk, and improved performance in extreme temperatures. However, the technology faces ongoing debates regarding optimal design approaches and safety considerations. Some experts have raised concerns about certain cathode materials used in sodium ion batteries, though manufacturers and independent researchers maintain that safety testing has been adequate. Current pricing for sodium ion batteries is approximately $100 per kilowatt-hour, compared to $81 for lithium iron phosphate batteries, though some industry observers project costs could eventually decline substantially.
Other companies are pursuing similar strategies. Seattle-based Emerald Battery Labs is developing auxiliary batteries for commercial vehicle fleets using Chinese-sourced cells while planning to develop new anode technology for domestically produced cells. California and Colorado-based Peak Energy has partnered with General Motors to create a US supply chain for sodium ion batteries, targeting grid-scale energy storage applications and aiming to establish Michigan-based production by the end of 2028.
While China currently leads global sodium ion battery manufacturing, US companies believe they can compete effectively. The energy storage market is expanding due to rising electricity demand from data centers. Sodium ion batteries are expected to occupy larger-scale applications rather than portable electronics, where energy density requirements favor lithium ion technology.
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