LG Chem Sinopec Partner Develop Sodium-Ion Battery Materials Global Expansion

LG Chem and China's Sinopec have formed a strategic partnership to jointly develop cathode and anode materials for sodium-ion batteries (SIBs), aiming to capitalize on the growing demand in energy storage systems and low-speed electric vehicles globally, with a focus on the Chinese market. Sodium-ion batteries are regarded as a promising alternative to lithium-ion batteries due to their greater resource availability, cost-effectiveness, improved safety, faster charging, and superior performance in low-temperature environments compared to lithium iron phosphate batteries. The market for SIBs is projected to expand rapidly, with estimates forecasting growth from 10 gigawatt hours (GWh) in 2025 to 292 GWh by 2034, at an average annual growth rate of 45 percent, and China expected to produce over 90 percent of global output by 2030. Both companies plan to establish a stable supply chain and competitive pricing while exploring new business models and expanding cooperation into eco-friendly energy technologies and high-value-added materials. This collaboration marks Sinopec's first significant move into next-generation battery materials and reflects LG Chem's commitment to enhancing its battery portfolio in alignment with future market strategies. The partnership underlines the importance of advancing battery technology to support the global energy transition and sustainable development goals.