Sinopec, LG Chem to jointly develop key materials for sodium-ion batteries

China Petroleum and Chemical Corp (Sinopec) recently signed a strategic agreement with South Korean petrochemical giant LG Chem to jointly develop key materials for sodium-ion batteries, a move that signals the State-owned oil major's accelerating pivot away from fossil fuels toward the renewable energy supply chain.

The collaboration will see the two industrial heavyweights co-develop cathode and anode materials specifically for the burgeoning sodium-ion sector.

The partnership initially targets the energy storage system and low-speed electric vehicle markets, segments where cost sensitivity often outweighs the need for the extreme energy density provided by traditional lithium-ion cells, said Sinopec.

Under the terms of the deal, Sinopec and LG Chem will also explore new business models to commercialize the technology and have pledged to expand their cooperation into broader "new energy" and high-value material sectors in the future.

The deal comes as the global battery industry seeks viable alternatives to lithium, a metal plagued by price volatility and geopolitical supply chain risks.

Wan Gang, president of the China Association for Science and Technology, said earlier that China's power battery exports topped 129 gigawatt-hours in the first three quarters, up 32.7 percent year-on-year.

The robust development of the country's power battery industry has underpinned the growth of its new energy vehicle sector. Sales of the country's NEVs in the first half reached 6.937 million units, a year-on-year increase of 40.3 percent, Wan said.

Emerging artificial intelligence technologies, coupled with the new model of vehicle-battery separation, have brought brand-new opportunities for innovation in the industry while raising the bar for its development, Wan said.

He called for strengthening diversified technological innovation and developing intelligent management technologies to enhance battery safety, reliability and environmental adaptability.

The advancement of the innovative development in new application models and formats for power batteries is necessary in enhancing the industry's sustainable development capacity, he said.

Amid the backdrop, sodium-ion batteries are gaining significant attention as a viable alternative to lithium-ion counterparts and, according to Sinopec, offer distinct advantages in terms of resource availability and cost-effectiveness.

They have also been lauded by Sinopec and other market players for enhanced safety, faster charging capabilities and superior performance in low-temperature environments compared to lithium iron phosphate batteries, with less capacity decay.

China's power battery industry has maintained rapid growth in recent years, with major breakthroughs in core technologies.

The latest battery cells in the country currently reach energy densities exceeding 300 watt-hours per kilogram, enable 15-minute fast charging and deliver an average driving range of over 500 kilometers, according to the Ministry of Industry and Information Technology.

China will come up with a plan to provide strategic guidance for the development of NEVs and advanced battery industries during the next planning cycle, it said.

The ministry also pledged to promote innovation in battery swapping models, expand application scenarios and advance vehicle-to-grid interaction pilot programs.

For Sinopec, the world's largest oil refiner by capacity, the deal represents a critical step in diversifying its portfolio against the backdrop of a slowing long-term outlook for refined oil products.

The company has aggressively positioned itself as a burgeoning leader in China's green transition, having already rolled out a massive network of hydrogen refueling stations and EV charging infrastructure across the Chinese mainland.

The market outlook for sodiumion batteries is robust, particularly in China. Research institutions project the Chinese sodium-ion battery market to surge from an estimated 10 GWh this year to 292 GWh by 2034, representing an impressive compound annual growth rate of approximately 45 percent. By 2030, China is expected to account for over 90 percent of global sodiumion battery manufacturing volume.

"This joint development of sodium-ion battery materials will help both parties further enhance their technical strength and market competitiveness, promoting energy transition and sustainable development," said Hou Qijun, chairman of Sinopec.