LG prepares sodium-ion batteries for Tesla to reduce reliance on China

A major battery supplier for Tesla is gearing up for mass production of new-type batteries. South Korea's LG has begun active preparations to manufacture sodium-ion batteries, aiming to reduce the market's dependence on Chinese producers, primarily CATL, which currently dominate this segment.

LG is already developing sodium-ion technology at the research level and plans to launch a pilot line at its plant in Nanjing, where batteries for the Tesla Model Y and Model 3 are produced today. Within a year, the company expects to start producing test samples, then integrate the new batteries into electric vehicles and energy storage systems. To ensure stable supplies of key materials, LG has also signed an agreement with Sinopec.

Sodium-ion batteries are seen as a promising alternative to lithium-ion. They use more accessible sodium instead of lithium, are potentially cheaper to produce, safer, and perform better in cold climates. In several parameters, this technology could even compete with popular LFP batteries.

However, LG faces serious competition: CATL has already introduced sodium-ion batteries called Naxtra with high energy density. Still, the entry of the Korean player could significantly shift the market balance and accelerate the adoption of more affordable batteries for electric vehicles. LG remains one of Tesla's key partners and already supplies upgraded batteries for the Model Y and Model 3 with higher energy capacity and faster charging. In the future, sodium-ion batteries could complement this lineup, making Tesla electric vehicles even cheaper and more practical.