Netherlands-based Alfen and China-based CATL have signed an agreement to deploy 5 GWh of sodium-ion battery energy storage systems in Europe, building on an existing partnership focused on lithium-ion battery storage projects.
The agreement marks a new phase in a collaboration that began with lithium-ion battery-based storage projects. In 2023, Alfen and CATL established a long-term battery supply agreement, which was expanded in 2024 to support growing demand for Alfen’s energy storage solutions in the European market.
Through the new partnership, the companies will integrate sodium-ion batteries into their storage deployment strategy, targeting greater technology diversification and lower-cost solutions for stationary applications.
For Alfen, the agreement will diversify materials used across its energy storage portfolio, optimize product cost structures, and reduce exposure to lithium price volatility. The company expects the strategy to strengthen its competitiveness in European tenders for medium- and large-scale storage projects.
For CATL, joint deployment will provide operational experience with sodium-ion batteries in European grid-connected applications, support adaptation to regional grid requirements, and accelerate international expansion of sodium-ion energy storage systems.
Alfen develops and integrates solutions for smart grids, energy storage, and electric vehicle charging infrastructure, with a focus on strengthening Europe’s energy infrastructure.
CATL said it has maintained its position as the world’s largest battery supplier for electric vehicles and energy storage applications, and operates 20 battery manufacturing facilities.
CATL expands sodium-ion storage ambitions
In April, CATL announced what it described as the largest sodium-ion battery supply agreement to date, covering 60 GWh of batteries for Chinese storage integrator HyperStrong over three years.
The company said the agreement demonstrated that sodium-ion technology had overcome key challenges related to mass production and was ready for large-scale deliveries. CATL has invested around CNY 10 billion (EUR 1.2 billion) in sodium-ion battery research and development since 2016.
CATL has highlighted advances in energy density, material design, and manufacturing processes, including improvements to hard carbon anodes and moisture control during production.
The company also introduced a sodium-ion storage battery designed to maintain compatibility with its 587 Ah lithium battery cell format, allowing easier integration into existing systems and reducing adaptation costs.
The new cell offers more than 300 Ah capacity, an energy density of around 160 Wh/kg, system efficiency of 97%, a cycle life exceeding 15,000 cycles while retaining 80% capacity, and an operating temperature range from -40 C to 70 C.
CATL is targeting the technology for stationary storage applications lasting two to eight hours, renewable energy integration, shared storage systems, and data centers.
The battery uses a hard carbon anode and layered oxide cathode and avoids cobalt and nickel, while replacing copper with aluminum. CATL said the design has passed nail penetration, crush, and overcharge tests without thermal runaway.
The commercial expansion of sodium-ion batteries has been limited by falling lithium iron phosphate (LFP) battery prices, which reached around USD 50/kWh at the cell level. However, LFP storage cells with 314 Ah capacity have increased in price by around 20% over the past six months due to tighter lithium supply and rising demand.
CATL expects the new contract to mark an early stage of mass production for sodium-ion technology and bring the chemistry closer to a potential 30% to 40% cost advantage over LFP batteries.
From pv magazine España
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