(Yicai) Nov. 4 -- China Petroleum and Chemical Corporation, also known as Sinopec, has signed an agreement with South Korea’s LG Chem to jointly develop key materials for sodium-ion batteries, a low-cost alternative to lithium batteries, targeting the energy storage system and low-speed electric vehicle markets in China and worldwide.

The two firms will work together on the development of core components such as cathodes and anodes, accelerate commercialization, expand the sodium-ion battery business model, and extend cooperation into renewable energy and high-value-added materials in the future, Yicai learned from the Beijing-based energy and chemical giant today.

Compared with mainstream lithium batteries, sodium-ion batteries offer advantages in raw material availability, cost, safety, and charging speed. They also outperform lithium iron phosphate batteries in low-temperature environments, with less capacity loss.

With the surging popularity of new energy vehicles, lithium batteries -- valued for their high energy density and light weight -- retain market dominance. Sodium-ion batteries are still in the early phases of commercialization, and analysts note that the coming two to three years will be decisive for their efforts to scale production and gain market share in specialized applications.

China’s sodium-ion battery market is forecast to grow from 10 gigawatt-hours this year to 292 gigawatt-hours by 2034, with an annual growth rate of about 45 percent. By 2030, China is expected to account for over 90 percent of global sodium-ion battery manufacturing capacity, The Paper reported.

Hou Qijun, chairman of Sinopec, said the collaboration with the South Korean chemical and materials company will enhance both parties’ technological capabilities and market competitiveness while promoting energy transition and sustainable development. Sinopec aims to become a world-leading clean energy and chemical company and a key supplier of clean energy and advanced chemical materials.

Editor: Emmi Laine