As General Motors (GM) became the first non-Chinese automaker to decide to commercialize sodium-ion batteries (also called sodium batteries or salt batteries), Korea's battery industry has picked up the pace. The sector has been working to bolster lithium iron phosphate (LFP) batteries—where China holds an advantage—beyond its traditional focus on nickel-cobalt-manganese batteries, and now it must also respond to sodium-ion batteries.
Nickel-cobalt-manganese batteries and LFP batteries are lithium-ion batteries. In a lithium-ion battery, lithium acts as the "courier" that carries electrical energy inside the battery. It moves from the cathode to the anode during charging and from the anode to the cathode during discharging. By contrast, a sodium-ion battery uses sodium as the courier instead of lithium. Sodium-ion batteries can also use different cathode materials to create batteries that rival nickel-cobalt-manganese and LFP types.
According to the battery industry on the 16th, GM held its "Empower" event on the 9th (local time) and announced an equity investment in U.S. sodium-ion battery startup Peak Energy and a joint development plan.
GM plans to commercialize sodium-ion batteries after 2029. However, the sodium-ion batteries in question are slated to be developed for energy storage systems (ESS), not electric vehicles.
Kurt Kelty, GM vice president of battery and sustainability, said on the GM website, "As power demand rises and data centers take up a larger share of U.S. electricity consumption, the conversation around batteries is changing," adding, "We are confident sodium-ion batteries will become a key material for large-scale ESS in the coming years."
Kelty went on to say, "LFP has made considerable progress over the past 25 years, but as the technology has matured, the pace of advancement has begun to plateau," adding, "Like LMR, sodium-ion batteries are still in the early stages of development, leaving more room to drive meaningful improvements as the technology matures."
The biggest reason sodium-ion batteries are drawing attention is supply chain stability. Sodium can be easily obtained from salt. Salt is more than 500 times more abundant on Earth than lithium. It can also be easily extracted from seawater. By contrast, lithium is essential for nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA) batteries, as well as LFP batteries.
Lithium supply is limited, and as demand increases, prices often swing. According to the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and the Korea Mineral Resources Information Service (KOMIS), as of the 12th of last month, lithium was trading at $24.14 per kg, remaining above $20 since mid-Apr. 2024. Even in 2024 it hovered around $10, and from late Apr. to late Oct. 2025 it traded below $10, but it began to soar in Nov. last year. A battery industry official said, "Prices rise and fall, but if we use salt instead of lithium, the burden of materials and supplies supply will ease and cost reductions will be possible."
Sodium-ion batteries are also more tolerant of low temperatures than nickel-cobalt-manganese or LFP batteries. Lithium-ion batteries see driving range decline in winter. As temperatures drop, lithium-ion movement slows. By contrast, sodium-ion batteries are known to maintain 80%–90% of their performance even in bitter cold at minus 20°C. That means they can offset winter declines in EV efficiency.
Fire risk is also relatively lower than with lithium-ion batteries. Lithium-ion batteries such as nickel-cobalt-manganese and LFP can experience thermal runaway—where internal temperatures spike to thousands of degrees in an instant—if subjected to impact or overheating, potentially causing fires. However, sodium ions in sodium-ion batteries are larger and heavier than lithium ions, so even if an impact occurs, they move more slowly to the damaged area, making overheating relatively less likely. In addition, sodium-ion batteries have lower energy density (battery capacity) than lithium-ion batteries, so even if a physical shock ignites them, the explosive force is smaller and the spread is slower.
Korean battery makers including LG Energy Solution, Samsung SDI and SK On are already conducting research and development on sodium-ion batteries. However, commercialization timelines are undecided. During its fourth-quarter earnings announcement last year, LG Energy Solution said, "We judge sodium-ion batteries to have high potential for use in the ESS market, where price, lifespan and safety matter. They could also be used in 12-volt (V) batteries to replace automotive auxiliary lead-acid batteries and in some EV markets," adding, "We have recently reinforced our development workforce considerably and are conducting customer and technology verification through sample production." An LG Energy Solution representative said, "We are preparing a pilot line to produce prototypes," adding, "Our goal is to produce prototypes around 2027."
A Samsung SDI representative said, "We are also reviewing mass production of sodium-ion batteries," adding, "We expect to be able to announce a mass production plan in 2027." An SK On representative said, "We aim to complete prototype development within 2027," adding, "In the ESS business, our strategy is to expand the portfolio from LFP batteries and vanadium ion batteries (VIB) to sodium-ion batteries."
Samsung Securities researcher Cho Hyun-ryeol said, "If GM participates, sodium-ion battery development, which has centered on China's CATL, will become more widespread and is likely to affect Korea as well," adding, "The incentive for domestic battery companies to mass-produce sodium-ion batteries will grow."