Chinese new energy vehicle (NEV) manufacturer BYD has initiated the construction of a sodium-ion battery production facility in Xuzhou, Jiangsu province, marking the company's first such battery project. The groundbreaking ceremony took place on January 4, as announced by the Xuzhou government via WeChat.
The project, situated in the Xuzhou Economic and Technological Development Zone, will require a total investment of RMB 10 billion ($1.4 billion). It will primarily focus on the production of sodium-ion battery cells and battery packs, with an anticipated annual capacity of 30 GWh. However, the article lacks additional details about the facility.
Huaihai Holding Group had previously disclosed a strategic cooperation agreement with BYD's battery unit FinDreams on June 8, 2023. The partnership aimed to establish a joint venture for building a sodium-ion battery production base in Xuzhou.
The collaborative effort also targeted the creation of the world's largest supplier of sodium battery systems for microcars. Huaihai, established in 1976, operates in various sectors, including small vehicles, electric vehicles, components, and financial services.
In November 2022, unconfirmed rumors surfaced about BYD's plans to commence mass production of sodium-ion batteries in 2023, with the Seagull being the speculated first vehicle powered by these batteries.
Sodium-ion batteries are considered more economical but have lower energy density compared to lithium-ion batteries. Analysts suggest that sodium-ion batteries may find applications in cost-sensitive sectors such as energy storage and two-wheelers, where high energy density is not a critical requirement.