LG Chem signed a joint development agreement with China Petroleum & Chemical Corp., better known as Sinopec, to co-develop cathode and anode materials for sodium-ion batteries. The Korean chemical manufacturer announced the pact Tuesday, which was signed Oct. 30 at its Seoul headquarters.
The collaboration focuses on materials for energy storage systems and low-speed electric vehicles, primarily targeting the Chinese market. Sodium-ion batteries offer cost advantages over lithium-ion technology due to abundant raw materials, while delivering better performance in cold temperatures than lithium iron phosphate batteries.
The timing of LG Chem’s move is notable. China has leveraged its dominance in lithium-ion manufacturing to forge ahead on sodium-ion battery production, with analysts concluding the country will control the emerging market. Industry projections show China will account for more than 90% of global sodium-ion battery production by 2030.
The sodium-ion battery market is expected to expand from 10 gigawatt hours this year to 292 gigawatt hours by 2034, representing 45% average annual growth. However, several U.S. sodium-ion battery startups have shuttered operations this year due to funding challenges, underscoring the difficulty of competing with Chinese manufacturers’ scale and pricing.
LG Chem CEO Shin Hak-cheol said the Korean company aims to develop next-generation battery materials and strengthen its portfolio for customers’ future strategies. The partners plan to expand cooperation into broader new energy and high-value materials sectors.
