Sodium-ion is shaking up the battery market. Swedish battery developer Northvolt has produced a ground-breaking sodium-ion battery that uses no critical minerals, challenging the dominance of traditional lithium batteries. Northvolt claims their batteries have the potential to diminish the West’s reliance on China’s mineral reserves while also sidestepping the environmental toll tied to mining for these resources. Sodium-ion batteries may solve the West’s CRM problem. Analysts and investors however are yet to be convinced, citing cost and energy storage concerns. In the race to net zero, is sodium-ion the solution?
The sodium-ion cell is built on a hard carbon anode and a Prussian White-based cathode, a substance renowned for its low-cost and nontoxic properties. The cell is also free from lithium, nickel, and cobalt. These are minerals which often come with a high environmental and social price tag. Take cobalt, for one. Most of the world’s cobalt is sourced in the Democratic Republic of Congo, often by informal, artisanal miners operating under dangerous conditions.
The sodium-ion battery’s mineral free composition makes it a compelling alternative to other products powering the green energy market, such as lithium batteries. Lithium is difficult to source, and lithium-ion batteries have an unfortunate habit of catching fire when exposed to high temperatures. The sodium-ion cell’s resilience to high temperatures represents a significant advantage, potentially mitigating the safety risks associated with energy storage systems in diverse climates.
Science aside, reducing the West’s reliance on Chinese minerals may be the sodium-ion battery’s reigning trait. China’s legacy of dominance in the mining sector has left Western nations scrambling to keep pace. Europe’s electric vehicle industry, for one, hinges on materials mined and refined in China. A wave of national policies has emerged over the past year aimed at strengthening supply chains and securing the minerals needed to power the green transition.
However, the policies launched to boost investment and exploration for CRMs are falling short on progress, hampering the West’s ability to offer up viable alternatives to China’s refineries and fortify their clean energy reserves. Despite the recent announcement in November 2023 that the US and China plan to collaborate on climate action, ongoing tensions between Western powers and their Chinese counterparts continue to rock the geopolitical scale.
The logic behind ditching lithium is gaining momentum. But sodium-ion batteries face their own range of challenges. Chief among them, the energy output of sodium cells relative to their size falls behind that of lithium batteries. This makes them incompatible for most electric vehicles, especially those where space and weight are critical considerations.
The impacts of a successful and functional sodium-ion battery could be profound and widespread. The integration of sodium-ion batteries into the energy landscape would pave the way for a more diversified and resilient energy infrastructure. This shift not only enhances energy security for Western powers, but also contributes to the global effort to mitigate climate change.
However, to declare sodium-ion batteries as the answer to Western energy challenges would be hasty. The breakthrough at Northvolt marks a significant stride towards energy self-sufficiency and a reduced dependence on China, but these advancements represent just one piece of a larger, and more intricate puzzle. The road to net zero will demand cross-sector collaboration and a blend of policy and investment, with sodium-ion batteries serving as a pivotal, but evolving element in the global energy landscape.
Critical minerals featured briefly in discussions at the recent COP28 climate conference in steamy Dubai. UN Secretary General António Guterres, in his opening address, emphasised the urgent nature of the renewable energy crisis, urging world leaders and policymakers to bolster reserves of critical minerals in a manner that is both “sustainable and just.”
While this call from Guterres signals a positive development, many countries continue to flail in the face of China’s dominance of the mining sector. The UK finds itself in a precarious position due to a legacy of inadequate policy support and underinvestment, leaving the nation lagging behind its counterparts in manufacturing and accessing critical minerals.
Establishing policies for managing critical minerals is step in the right direction, but they must be supplemented by significant investment. The journey towards climate resilience demands a coordinated symphony of support on both policy and investment fronts to effectively achieve climate targets. Policymakers and global leaders must consider critical minerals more seriously in discussions about managing the move to clean energy. It would reflect a forward-thinking approach, acknowledging that mineral sourcing and management is crucial to the energy transition. To miss out on minerals would be a mistake.
Hannah Wendland, Analyst, Marlow Global
