CATL and Alfen Close 5 GWh Sodium Battery Deal in Europe

CATL and Dutch integrator Alfen announced on July 16 a memorandum of understanding to deploy 5 GWh of sodium-ion batteries in Europe starting in 2027. This is the first large-scale commercial order for this technology outside China and puts direct pressure on the lithium carbonate market exported by Chile, Argentina, and Bolivia.

CATL already operates a 60 GWh sodium-cell contract with Chinese firm HyperStrong, signed in April 2026, but the Alfen agreement is the first to export complete sodium-ion systems outside China. CATL's sodium batteries carry a cost 30% to 40% lower than LFP (lithium iron phosphate) batteries, according to the manufacturer, and the Dutch integrator is seeking to diversify its materials base amid carbonate price volatility: 314 Ah LFP cells have risen roughly 20% over the past six months due to supply-demand tightening, reported pv magazine. Chile, Argentina, and Bolivia, which hold the bulk of global lithium reserves, now face a chemical competitor that does not depend on any metal from the South American Triangle.

CATL's Tianheng cells offer more than 300 Ah of capacity, an energy density of approximately 160 Wh/kg, and a system efficiency of 97%. They sustain more than 15,000 cycles while retaining 80% of their capacity and operate between -40°C and 70°C, according to manufacturer specifications. The chemistry uses a layered oxide cathode and a hard carbon anode, with no cobalt, nickel, or copper. CATL has invested approximately 10,000 million yuan (1,200 million euros) in sodium-ion research since 2016, according to pv magazine. "Sodium-ion is the next step in how we think about storage: more diversified, resilient, and built for where the market is going," said Michel Colijn, CEO of Alfen, as quoted by Energy-Storage.news.

Sodium-ion does not replace lithium in electric mobility (its lower energy density confines it to stationary storage), but it competes directly in the highest-volume segment projected for the next decade. The pace of adoption in Europe, CATL's cost trajectory, and the response of South America's major lithium producers will determine how quickly price pressure reaches the Triangle.

This article was written with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.