Various technologies aside from Li-ion batteries have been emerging, one of which notably is sodium-ion (Na-ion), an alternative option which is both lower-cost and more easily obtainable. In 2021, the Na-ion battery developed by China’s CATL promised to deliver 50% cost savings over an LFP battery².

There are nearly 20 Na-ion battery manufacturing plants currently operating, planned or under construction, for a combined capacity of over 100 GWh, and 16 of these factories are in China³.

COP26 in Glasgow was the moment countries confirmed a commitment to reduce carbon dioxide emissions⁴, where more than 100 countries having agreed to reduce 30% of the methane emissions by 2030.

From tax credits, subsidies to mandates, governments are implementing policies and incentives to support the development and adoption of electric vehicles and renewable energy sources.

A study by the International Energy Agency found that electric vehicles became the strongest driver of battery consumption, ahead of stationary storage and consumer electronics⁵. With a 65% increase in automotive Li-ion battery demand from 2021 to 2022, a report from ABB forecasted global EV sales to possibly exceed 21% CAGR over the next decade, with the increase in battery production and capacity to be even higher⁶.

Keeping all the eggs in one basket isn't always the best strategy to deploy. Where main manufacturing facilities were mostly found in China and Korea initially, the shift in the automotive industry towards EVs, coupled with the need to maintain a robust & optimized supply chain, has pushed battery manufacturers to create and build new plants closer to where the EV manufacturing is.