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In brief
Known for its high energy density and long cycle life, lithium-ion has emerged as the preferred choice of battery technology. Lithium-ion batteries (LIBs) are also distinguished by their adaptability and scalability, rendering itself to be an ideal candidate for applications in electric vehicles (EVs) and utility-scale energy storage. The convergence of the technical benefits coupled with swift expansion of global manufacturing capacities for LIBs has resulted in a substantial reduction in production costs.
India is actively promoting battery manufacturing and supply chain development, but its access to battery critical minerals, especially lithium, essential for cathode and electrolyte, remains severely limited. To overcome this, the Indian government has initiated efforts to secure critical mineral supplies through partnerships such as the Mineral Security Partnership (MSP) and Special Purpose Vehicle (SPV) like KABIL.
However, supply vulnerabilities remain. China is the dominant player across the value chain, including supply of minerals such as lithium and graphite. In 2023, China restricted graphite exports, disrupting supply chains for countries like the US and South Korea. Although India is scaling up its graphite and anode capacity, lithium supply remains heavily exposed to geopolitical risks because of heavy backward integration of five to seven top Chinese lithium processing companies into mining in Australia and Chile. In addition, China is planning to restrict export of advanced technologies, particularly those related to lithium refining and cathode preparation.
Given the restrictions and challenges surrounding critical minerals and battery technology, Indian stakeholders, including the government and industry, need to realign their strategies to secure a resilient position in the global battery supply chain. In this context, sodium-ion batteries (SIBs), though still in the development stage, present a promising alternative among the available battery chemistries.
1. Cathode Active Material (CAM):
SIBs often utilize cathode materials designed to accommodate the larger sodium-ions, such as Layered Oxides, Polyanionic compounds, or Prussian Blue analogues. LIBs typically use lithium iron phosphate (LFP) or other lithium containing compounds.
2. Anode Active Material (AAM): While graphite is the common anode material for LIBs, it is not as effective for SIBs because sodium ions do not intercalate as readily into graphite. Alternative materials for SIBs, include hard carbon and soft carbon.
3. Electrolyte salts: The electrolyte in SIBs contains sodium salts, such as sodium hexafluorophosphate (NaPF6), whereas LIBs use lithium salts like lithium hexafluorophosphate (LiPF6). The solvents and additives may also differ to optimize performance.
4. Other cell components such as separators, aluminum foil, and casings are essentially common across LIBs and SIBs.
Energy transition
The extension of how energy is produced, transported and used across all industries will be integral to society’s progress toward sustainability.
The biggest advantage of SIBs lies in the abundance of sodium, one of Earth’s most plentiful elements. While LIBs are currently cheaper, SIBs when produced at scale can potentially be ~20% to 30% more economical.
Although SIBs have a lower energy density, they offer superior safety and temperature tolerance, making them a good fit for Battery Energy Storage Systems (BESS). Prioritizing early adoption of SIBs in BESS can drive down costs, paving the way for their eventual expansion into mobility applications.
India’s advanced chemical industry is well-positioned to supply essential SIB components, strengthening the domestic supply chain. SIBs are also compatible with existing LIB infrastructure (cell manufacturing), enabling a smooth transition with minimal investment.
However, to realize the potential of SIBs, India needs a strategic and multi-faceted approach. Key stakeholders should take decisive steps to advance both the technological maturity and commercialization of SIBs.
The majority of SIB players are at a Technology Readiness Level (TRL) of 5 to 6, which is far from the commercial deployment levels of 8 to 9. In the interim, it is prudent for India to actively participate in the energy transition by utilizing LIBs while simultaneously preparing to embrace a forward-thinking strategy through the integration of SIBs. This dual-track approach will enable India not only to participate in the global energy transition but to lead it, especially as SIBs reach commercial maturity and offer a viable alternative to the current LIB paradigm.
The article was first published by Praveen Pothumahanty in ET Auto on 26 May 2025.
India is advancing battery manufacturing but faces constraints due to limited access to critical minerals, especially lithium. Lithium-ion batteries (LIBs) dominate currently, but supply chain risks and China's control over key materials pose challenges. Sodium-ion batteries (SIBs) emerge as a promising alternative, offering lower costs, better safety, and compatibility with existing infrastructure. India’s chemical industry and policy initiatives can support SIB development through R&D funding, pilot lines, and commercial incentives. A dual strategy leveraging both LIBs and emerging SIBs, supported by global partnerships and workforce training, can secure India’s leadership in the global battery supply chain and energy transition.
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