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Salt-based batteries could become a cheaper EV option

Sodium-ion batteries are moving closer to mass production as companies in the U.S. and China build new supply chains. The chemistry could cut costs and reduce reliance on lithium, but it still trails lithium-ion on energy density.

Published 9 Aug 2026
What it means for Nepal

Sodium-ion batteries are moving closer to mass production as companies in the U.S. and China build new supply chains. The chemistry could cut costs and reduce reliance on lithium, but it still trails lithium-ion on energy density.

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Salt-based batteries could become a cheaper EV option
Image: BYD — official image

U.S. startups are pushing sodium-ion batteries toward larger-scale production. They use sodium from common salt instead of lithium and other scarce materials.

Why it matters

The technology is aimed first at stationary storage such as power grids and data centers. Batteries can charge when supply is high and discharge when demand rises.

It may offer lower cost, better safety and longer life in some uses. Some installations also need less cooling.

Key players

Peak Energy plans production at a new Sacramento, California plant in early 2027, with capacity of about 4 GWh a year. The company says it has already lined up more than $1.1 billion in customer deals.

General Motors has also taken a strategic stake in Peak Energy. Inlyte Energy is building a sodium-based battery using iron, steel, aluminum oxide and food-grade table salt.

Limits for EVs

Sodium-ion cells store less energy per kilogram than lithium-ion batteries. Lithium remains the better fit for vehicles where weight and driving range matter most.

China still makes most sodium-ion batteries. BYD and CATL have also announced large-scale plans.

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Ajit Narayan Singh
Editor, Nepal AutoMart

Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.

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