China Petroleum and Chemical Corp (Sinopec) and LG Chem, a South Korean chemical company, have signed an agreement to jointly develop key materials for sodium-ion batteries, targeting the burgeoning energy storage system and low-speed electric vehicle markets in China and around the world.

The collaboration will focus on accelerating the commercialization of crucial components, including cathode and anode materials, for sodium-ion batteries.

Both companies are also exploring new business models for the technology, and plan to expand their partnership into broader new energy and high-value materials sectors in the future.

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 (LFP) batteries, with less capacity decay.

The market outlook for sodium-ion batteries is robust, particularly in China. Research institutions project the Chinese sodium-ion battery market to surge from an estimated 10 gigawatt-hours (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 sodium-ion 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.

zhengxin@chinadaily.com.cn