Salt Batteries Production Accelerated in China

China Southern Power Grid (CSG) announced on May 26 the commissioning of the Baochi Energy Storage Station in Wenshan, Yunnan province — a national pilot project and the first large-scale hybrid lithium-sodium battery energy storage facility in China. The plant is also the world’s first to deploy a grid-forming sodium-ion battery system.

The advancement of sodium-ion battery technology in China is not solely driven by the electric scooter market. As the global energy transition accelerates and the renewable energy sector flourishes, sodium-ion batteries have emerged as an important complementary solution to lithium-ion batteries, garnering attention from the Chinese industry. This trend reflects the diversified development and comprehensive progress of battery technology innovation in China.

With a total investment of over CNY 460 million ($63.8 million)and occupying 34,000 square metres, the Baochi plant is designed for an installed capacity of 200MW/400MWh. Based on a dual daily charge-discharge cycle, it can regulate up to 580 GWh annually — enough to power 270,000 households, with 98 per cent of its energy sourced from renewables. The facility supports more than 30 local wind and solar power stations, alleviating the impact of intermittent supply and facilitating the integration of high shares of renewables into the grid.

The Baochi Storage Station in Yunnan integrates lithium and sodium-ion technologies at scale, a global first, aiming to stabilize renewable energy and cut costs as China accelerates its energy transition.

CATL's billionaire founder Robin Zeng has said he sees sodium-ion batteries potentially replacing up to half the market for LFP batteries that CATL now dominates.

When mass produced, the salt-based batteries could be much cheaper to make than alternatives on the market because sodium is abundant and less costly to harvest than lithium. Aluminum can be used as an anode instead of more expensive copper, reducing expenses even more, all per PV.

Chinese companies' multi-pronged strategy in driving sodium-ion batteries will no doubt place it in a leading position in this global race.