LG Chem has entered into a partnership with Chinese energy giant Sinopec to develop next-generation sodium-ion batteries for electric vehicles and energy storage systems, marking a new strategic move for both companies as they expand beyond lithium-based technologies.
Under the agreement, LG Chem will focus on developing advanced cathode and anode materials for sodium-ion batteries, while Sinopec will leverage its chemical production and scaling capabilities to support large-scale manufacturing. Both companies are venturing into the sodium-ion battery segment for the first time.
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“We will develop next-generation battery materials in a timely manner through cooperation with Sinopec,” LG said in a statement. The South Korean chemical firm noted that sodium-ion batteries offer several advantages over traditional lithium-ion cells, including improved safety and better performance in cold-weather conditions.
The collaboration comes as global automakers and battery manufacturers explore alternative chemistries to reduce reliance on lithium, which faces supply constraints and price volatility. Sodium, being more abundant and less costly, is seen as a potential game changer for mass-market electric vehicles and stationary energy storage systems.
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According to LG, the goal of the partnership is to create sodium-ion batteries that are cost-competitive while maintaining durability and efficiency suitable for affordable EVs and large-scale grid storage.
LG Chem, which already supplies high-performance lithium-ion batteries to Tesla, has been investing heavily in next-generation materials research. The company’s recent innovations include advanced 4680 battery formats designed to enhance thermal efficiency and charging performance.
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As LG and Sinopec collaborate to refine sodium-ion technology, industry observers are watching closely to see whether automakers such as Tesla might adopt these new batteries in future models.