For stationary energy systems, sodium-ion batteries could offer competitive advantages as market differentiators within three primary segments: Front-of-the-Meter (FTM) grid storage, Behind-the-Meter (BTM) grid storage, and as a temporary power portable storage solution. So come along as we explore how sodium-ion batteries could fit into the changing BESS equation!
Contact: Betsy Barry
Communication Manager
706.206.7271
betsy.barry@acculonenergy.com
Stationary Energy Storage
As the energy landscape evolves, Battery Energy Storage Systems (BESS) are playing an increasingly vital role in enhancing the reliability and efficiency of global power supplies. In these stationary systems, sodium-ion batteries could offer competitive advantages as market differentiators within three primary segments: Front-of-the-Meter (FTM) grid storage, Behind-the-Meter (BTM) grid storage, and as a temporary power portable storage solution.
FTM grid storage refers to larger-scale energy storage systems connected directly to the power grid, powering locations where energy needs to pass through a meter before it can be used. These systems help balance supply and demand, integrate renewable energy sources, and enhance grid stability and resiliency.
BTM grid storage, on the other hand, involves smaller-scale systems installed on the “consumer” side of the meter: residential homes and commercial solar batteries fall within this category. BTM is separate from the grid, as it were, allowing consumers to produce electricity on-site, decreasing reliance on conventional utility companies. These systems empower businesses and homeowners to store energy, reduce peak demand charges, and increase overall energy independence.
Portable energy storage systems are becoming increasingly popular for providing flexible and mobile energy access, catering to a wide range of applications from emergency backup power to off-grid adventures. These systems can enhance the expansion of power transmission by providing quick, flexible, and cost-effective solutions for integrating renewable energy.
All in all, these diverse BESS market segments are driving innovation and expansion in the energy storage industry and are primed for next-gen sustainable battery chemistries like sodium-ion.
How are these stationary market segments ripe for a sodium-ion takeover? Here are some reasons why this battery chemistry could be a great option for FTM, BTM, and portable energy storage applications.
Sodium-Ion as an Alternative to Lithium-Ion
Research conducted by PNNL in 2022 indicates that lithium-ion batteries, especially lithium iron phosphate, have the lowest capital cost across most durational ranges and power capacities. Although newer emerging storage technologies continue to be developed, there is still great uncertainty about the ability to compete competitively against LFP. Containerized energy storage solutions have greater siting flexibility and follow common engineering, procurement, and construction (EPC) practices. Sodium-ion battery solutions, which are manufactured similarly to lithium-ion and can be containerized, may be an attractive alternative to LFP based on the following reasons articulated below:
1. Pathways for Cell Cost Advantage vs. LFP
Sodium is the 6th most common element on Earth, making up over 2% of the Earth’s crust, and it is 2000X more abundant than lithium. Furthermore, the extraction process for sodium is simpler and more environmentally friendly, contributing to a more sustainable supply chain. Additionally, anode and cathode materials used in sodium-ion batteries benefit from mature supply chain processes, further reducing costs. These batteries can also leverage existing manufacturing infrastructure designed for LFP batteries, minimizing the need for significant retooling or new investments in production facilities. By 2030, sodium-ion cell price is expected to be around $40/kW, which would be lower than what LFP is today and even lower than today’s calculated cost to manufacture LFP cells.
Sodium-ion batteries are a compelling option for next-generation stationary energy storage systems due to their increased performance capabilities, cost advantages, & reduced implementation risks.
Perhaps more important at the moment are the current tariff and trade climate, as well as geopolitical uncertainty, which are conspiring to create an even more compelling argument for sodium-ion batteries. In the U.S., sodium-ion batteries currently face a total import duty of just 38.4%, which offers a significant cost advantage for exporters. In stark contrast, lithium-ion batteries are subject to a combined import tariff exceeding 100%, factoring in base duties, anti-dumping measures, and Section 301 tariffs. This means sodium-ion batteries are taxed at nearly one-third the rate of lithium-ion batteries in the U.S..
Similarly, the European Union has imposed a range of trade restrictions on Chinese lithium-ion batteries, including anti-dumping and countervailing duties, traceability and sustainability requirements, and customs inspections. However, sodium-ion batteries currently enjoy zero tariff rates in the EU and face no anti-dumping actions, making exporting them to the EU tariff-free with fewer policy hurdles.
Furthermore, in major Asian markets such as India, South Korea, and Southeast Asia, sodium-ion batteries generally face minimal or no import barriers, with most countries maintaining zero to low import duties (0-5%) on these products. Conversely, lithium batteries often encounter increased scrutiny or regulatory control in these regions.
Beyond tariffs, sodium-ion batteries also benefit from lower overall policy pressure compared to the high policy pressure on lithium-ion batteries. They are more easily aligned with eco-friendly procurement policies. In short, the cost trend for sodium-ion batteries is decreasing on multiple fronts. This, combined with growing commercial interest and reduced cost pressures from tariffs, makes sodium-ion an attractive option for manufacturers looking to avoid overpaying on lithium tariffs.
2. Greater Operating Temperature Ranges Lead to Simpler System Design & Operations
One of the standout features of sodium-ion batteries is their ability to operate over a wider temperature range on both extremes of the thermometer. As the industry coalesces around BESS systems in 20-foot containers, this characteristic enables climate control strategies to rely more on passive methods than on expensive climate control systems. Consequently, this can lead to significant cost savings in the balance of system costs.
A wider operating temperature range for sodium-ion batteries can not only lower the upfront installation cost but also reduce ongoing operational expenses associated with climate control systems. Best practice battery pack and rack designs, as followed by Acculon Energy, can also greatly reduce the safety risks associated with thermal runaway events. Acculon Energy’s battery solutions are designed to mitigate single-cell fault failure, effectively eliminating the possibility of losing a whole BESS container due to thermal runaway.
3. Ability to Store at 0 Volts Reduces Cell Degradation Risks Prior to Commissioning
Sodium-ion batteries can be stored safely at 0V. This capability simplifies shipping, logistics, and storage, as there is no need for maintaining a recommended charge level during transportation or periods of inactivity. This feature also enhances the longevity and reliability of the batteries, contributing to lower maintenance costs over time. In the U.S. alone, 6 GW of BESS was delayed in 2023, with cell damage one of the leading causes. This is especially important as BESS project viability can be dependent on being operational during select high-value months in a given year.
Furthermore, storing and transporting at 0V can reduce the risk of the various stakeholders and contractors that may be in close contact with or are physically installing any of the BESS infrastructure.
4. Energy Density Constraints Are Less of an Issue
While sodium-ion batteries currently have a lower energy density (around 60-65% of that of lithium-ion batteries), this is less of a constraint for stationary storage applications where space is not as critical as in mobile applications like electric vehicles or LEVs. Moreover, ongoing research and development efforts are expected to give rise to improvements in the energy density of sodium-ion batteries in the near future, further enhancing their appeal for stationary storage.
As sodium-ion batteries start to change the energy storage landscape in the coming years, this promising new chemistry presents a compelling option for next-generation stationary energy storage systems due to their increased performance capabilities, cost advantages, and reduced implementation risks. As the technology continues to evolve, sodium-ion batteries are poised to play a significant role in the future of energy storage, supporting the transition to more sustainable and resilient energy systems.
Footnotes:
2. See https://www.pv-magazine.com/2024/01/11/acculon-launches-production-of-sodium-ion-battery-modules-packs/ and https://www.bloomberg.com/news/newsletters/2024-07-09/china-s-batteries-are-now-cheap-enough-to-power-huge-shifts
3. See https://www.pknergy.com/news/global-sodium-ion-battery-import-tariff-overview-and-export-strategy/