How CATL Made Batteries 90% Cheaper (And What Happens Next)

What if I told you the world’s largest battery company just announced batteries that cost as low as $10 per kilowatt hour? Not $100. Ten. That’s like going from paying for a luxury car to buying a bicycle. And the kicker? They’re not using some exotic new chemistry. They’re using salt. Yes, the same stuff sitting on your kitchen table.

But here’s where it gets weird. CATL makes more lithium batteries than anyone else on the planet. They’re literally winning the lithium game. So why are they suddenly pivoting to a technology that’s been considered second-rate for decades? The thing is, they’re being mysteriously quiet about how they achieved this breakthrough. No technical papers. No detailed explanations. Just bold claims and two new products ready to hit the market. So is this the real deal that changes everything? Or are we looking at tech hype that’s too salty to swallow?

Let me introduce you to CATL’s new sodium battery pack, Naxtra.¹ If you don’t know CATL, they’re the battery company that powers Tesla, Mercedes-Benz, and pretty much half the EVs on the planet. So when the king of lithium batteries suddenly starts pushing sodium, it’s like McDonald’s suddenly announcing it’s selling pizza. People notice.

Here’s the thing. Sodium batteries have always been the underdog. They’re less energy dense, have shorter lifespans, and despite salt being literally everywhere, the batteries cost a fortune. You know how these contradictions go…most of the planet is covered by water, but people still shell out for “luxury” bottles of it.

Unlike cases of melted glaciers, though, CATL claims that the Naxtra battery can be gotten for cheap, costing as low as $10 per kilowatt hour.¹ The entire industry has been desperately trying to hit $100 per kWh. Back in 2008, lithium batteries cost a staggering $1,415 per kWh.²³ We’ve spent 16 years clawing our way down to $115 per kWh in 2024.⁴ That’s when EVs become as cheap as gas cars and home batteries become affordable for normal humans. We just barely crossed that finish line after a decade and a half of work, and CATL just lapped us nine times.

So how did CATL pull this off? And what does it mean for your next car or home battery backup? Because cheaper batteries could change everything like storing solar power to keeping your Netflix running during blackouts. Priorities, right?

Sodium basics

To understand why this matters, let’s quickly cover how sodium batteries work. We’ve talked about sodium batteries and CATL’s sodium tech before, so I’ll keep this brief.

Both sodium and lithium batteries work the same basic way. You’ve got two electrodes. Think of them as parking garages for ions. When you charge the battery, sodium ions shuttle from one electrode to the other, storing energy in the process. When you need that energy, the ions shuttle back, releasing power to run your devices.⁵⁶⁷

But here’s where sodium gets interesting. These batteries are much safer than lithium. They’re way less likely to catch fire or explode.⁸ If you’ve ever worried about your phone overheating or seen news stories about EV fires, sodium just doesn’t have the same temper.

Now you might wonder why we aren’t all using sodium if it’s safer and literally made from seawater. Well, sodium has real drawbacks. It stores less energy per pound and doesn’t last as many charge cycles, which is not ideal when you’re powering an EV or trying to keep your house running all night for year after year.⁹

The real kicker, though, is that sodium is about 1,000 times more common than lithium.¹⁰ We have literal oceans of the stuff. Yet somehow, sodium batteries have stayed expensive. Even as lithium plummeted 92% from $1,415 to $115 per kWh over the last 16 years,²⁴ sodium couldn’t compete. Manufacturing quirks and efficiency issues meant that despite cheap materials, the final product cost too much.¹¹ So if everyone was struggling to hit that magic $100 per kWh target, how did CATL suddenly achieve $10? And should we believe it? Let’s dig into what makes Naxtra different.

Naxtra

Let’s start with the Naxtra battery pack. Actually, there are two versions of Naxtra. The first one rolling off production lines will be the 24V Heavy-Duty Truck Integrated Start-Stop Battery, followed by one designed for passenger EVs.¹² Both share the same core technology but are each optimized for different applications.

The temperature performance is where sodium really flexes. Both Naxtra versions operate from -40 C to 70 C (or -40 F to 158 F), completely redefining what we expect from battery temperature limits. And they retain 90% of their usable power at those Arctic temperatures.¹

This matters more than you might think. CATL and other Chinese manufacturers have extra incentive here. China’s northern provinces border Siberia and experience Siberian-level cold, making them historically unfriendly to EVs. There are also substantial markets in neighboring Russia and Mongolia that need affordable, cold-resistant electric vehicles.¹³ It’s not just about making batteries that work in winter. It’s about opening entire regions to electrification.

But temperature resistance is just the beginning. CATL claims Naxtra can last for over 10,000 charge cycles, with the heavy-duty version capable of starting after sitting idle for an entire year.¹⁴ That’s not just impressive. It’s paradigm-shifting.¹

Let me put those numbers in context. Tesla’s LFP batteries typically last 3,000 to 4,000 charge cycles before capacity degrades below the 70-80% threshold. That’s when your 363-mile range drops to around 255 miles.¹⁵ Still very usable, but noticeable. As a general rule, after 200,000 miles, average battery capacity degrades about 15%.

But if Naxtra really delivers 10,000 cycles? We’re talking about something like 3.6 million miles of theoretical driving before dropping below 85% capacity.¹⁵ That’s not a car battery anymore. That’s infrastructure. Now that’s a battery worth its salt.

Performance-wise, Naxtra gets surprisingly close to current lithium technology. According to the South China Morning Post, Naxtra achieves an energy density of 175 Wh/kg. That’s remarkably close to the 185 Wh/kg of average EV lithium iron phosphate batteries.¹⁶ Yes, it’s still behind premium nickel-based lithium batteries that hit 250-300 Wh/kg, but it’s competitive with the LFP batteries that already power millions of vehicles.

CATL says this translates to a 500-kilometer (310-mile) driving range on a single charge.¹⁷ That covers the vast majority of daily driving needs, especially for urban and suburban use cases where most EVs spend their time.

Freevoy

Naxtra isn’t CATL’s only sodium offering. They’ve also developed Freevoy, which we discussed briefly before. Freevoy takes an entirely different approach by combining two battery chemistries in one pack.¹⁵¹⁸

Think of it as a hybrid, but for batteries. Freevoy comes in three configurations: Classic LFP, high-performance nickel manganese cobalt (NMC), and now sodium-ion.¹ Each chemistry brings its own strengths, and Freevoy’s power management system intelligently switches between whatever pairing you have based on conditions and needs.¹⁹

Since launching in October 2024, Freevoy has evolved beyond just slapping two battery types together.²⁰ CATL has optimized the interaction between the chemistries. They’ve carefully defined cell ratios and arranged them in specific mixed, serial, and parallel connections. This optimization alone improves the temperature range by 5%.¹⁹

Here’s where it gets clever. The system uses the sodium side as a state-of-charge benchmark to assist and calibrate the lithium-ion battery’s charge level. According to CATL, this improves overall system efficiency and adds over 10 kilometers to the pure electric range.¹⁹

The real value proposition is addressing lithium’s weaknesses with sodium’s strengths. Cold weather performance? Sodium handles it. Need maximum range for a road trip? Switch to lithium. City driving in extreme heat? Back to sodium. It’s choosing the right tool for each job. More importantly, if you’re somewhere cold where lithium tends to struggle, then have no fear, sodium is here.¹⁵

Drawbacks

Now for the reality check. These advancements sound fantastic, so what’s the catch?

First, lithium still holds advantages in energy density and, surprisingly, cost. Despite sodium being more abundant, current market dynamics favor lithium.⁶ The technology is more mature, the supply chains are established, and economies of scale are already in play.²¹

The timing is particularly challenging. After dropping 92% from $1,415 per kWh in 2008 to $115 today,²⁴ lithium prices have plummeted another 70% just in the past three years due to oversupply.²²²³ We’re talking about batteries that cost less than a tenth of what they did 16 years ago getting even cheaper. This price crash has weakened sodium’s economic argument considerably. Why switch to a new technology when the old one just got much cheaper?

The frustrating part is that while CATL has shared impressive technical specs, it’s been notably tight-lipped on actual pricing.²⁴ That claimed $10 per kWh figure would be revolutionary if true. But without concrete pricing for real products, skepticism is warranted. We’ve seen too many battery breakthroughs evaporate when they hit market realities.

The lack of technical explanation is equally concerning. How exactly did CATL achieve such a dramatic cost reduction? What manufacturing innovations made this possible? The company isn’t providing many details.²⁴ That’s either strategic secrecy or strategic vagueness.

A Stanford study from January 2025 highlighted another challenge. When, or even if, sodium batteries will become truly cost-competitive remains highly uncertain.²⁵²¹ The technology faces a classic catch-22: it needs scale to achieve promised costs, but it needs low costs to achieve scale.

As battery chemist Dan Steingart from Columbia University noted in a February 2025 Science article, sodium battery manufacturers are still too small to benefit from economies of scale.²² The entire industry would need to pivot, and that kind of change doesn’t happen overnight. But that’s exactly what CATL is trying to change here.

Outlook

So where does this leave sodium batteries on the NASA technology readiness scale?²⁶ Despite the challenges, Naxtra is genuinely an 8 or 9 — flight proven and ready for market.¹ This isn’t theoretical. CATL has been producing sodium batteries for several years, though not at this scale.

Yes, there have been obstacles. CATL originally promised to have sodium supply chains established by 2023. It wasn’t until earlier this year that they achieved this, causing significant production delays.¹⁶ But mass production is now reality.²⁷

The manufacturing component of the story is crucial here. Sodium cells use nearly identical production processes to lithium-ion cells. This means CATL and others can convert existing production lines rather than building from scratch. That’s a massive advantage for scaling quickly.²⁸

Freevoy also rates an 8 or 9 on the readiness scale.²⁶ This isn’t speculation — 30 different vehicle models from brands including Geely, Chery, GAC, and Voyah are scheduled to launch with Freevoy batteries this year.¹⁹ These aren’t concept cars. They’re production vehicles.

The market position matters too. CATL already commands about 38% of global EV battery installations, with their batteries powering over 18 million vehicles worldwide.²⁹ The company works with industry giants from Tesla to Mercedes-Benz.¹²³⁰ When CATL announces a new technology, the industry doesn’t just listen — it prepares to adopt.

CATL’s CEO Robin Zeng made his vision clear months ago, stating that sodium could capture up to half the battery market.³¹³²³³ Coming from the leader of the world’s largest battery company, that’s not idle speculation, but a roadmap.

If that $10 per kWh figure proves real, we’re looking at a fundamental shift. EVs could not only reach price parity with gas cars years ahead of schedule … but blow past them. Home energy storage could become standard rather than luxury. Grid-scale storage could explode.³⁴

Even if reality lands closer to $40 or $50 per kWh, that’s still transformative. At those prices, batteries become cheap enough to deploy everywhere. The economics of renewable energy completely change when storage is affordable.

The real test is this year. Will those 30 announced models actually ship? Will consumers trust a new battery chemistry? Will the economics work out as promised? We’re about to find out.

One thing seems certain: the battery landscape is diversifying. Lithium won’t disappear, but it might not dominate forever. You could say the industry is experiencing a real… sea change. And for consumers, competition usually means better products at lower prices.

The Bigger Picture: Why This Changes Everything

Okay, so we’ve talked about the tech and the economics, but let’s zoom out for a minute. If CATL’s $10 sodium batteries are real, we’re looking at way more than just cheaper EVs. This could reshape global power dynamics.

Right now, lithium is the new oil. A handful of countries control the supply. Australia, Chile, and China dominate lithium mining and processing.³⁵ China controls 75% of global battery manufacturing.³⁶³⁷ That gives the country incredible leverage over the clean energy transition. But sodium? It’s everywhere. Every country with a coastline has unlimited supply. Landlocked countries can extract it from underground salt deposits. This could advance more than battery chemistry; it could open up the path for energy independence.

Think about what happened with solar panels. In 2010, they cost $2.50 per watt. Today? Under $0.30.³⁸ That 88% price drop completely changed the energy equation. Suddenly, the cheapest electricity on Earth comes from solar farms in the desert. If batteries follow the same trajectory — and again, they’re already 92% cheaper than 16 years ago — we’re approaching a tipping point. Not just for transportation, but for the entire grid.

Cheap batteries don’t just make EVs affordable. They make renewable energy reliable. The big criticism of solar and wind? Intermittency. But with $10 per kWh batteries? You can store a week’s worth of power for less than the cost of a generator. California already requires new homes to have solar panels. Imagine if batteries become so cheap that storing your own power costs less than staying connected to the grid. Power companies would have to completely reinvent their business model.

And it goes beyond energy. Cheap, safe sodium batteries could bring electricity to the billion people who still lack reliable power. Villages in Africa and Asia could leapfrog the grid entirely, the same way they skipped landlines and went straight to cell phones. The irony is delicious. For decades, we’ve worried about running out of lithium, about one country controlling the battery supply chain, about the environmental cost of mining rare metals. And the solution might be the most common mineral on Earth. Sometimes the simplest answer really is the best one. Occam’s Razor? More like Occam’s element.

But here’s my prediction: even if CATL hits $10 per kWh, lithium won’t disappear. We’ll see market segmentation. Premium devices and performance cars will stick with lithium for its energy density. But for grid storage, backup power, and budget EVs? Sodium could dominate. It’s like the transition from film to digital photography. Film didn’t disappear overnight. Professionals kept using it for specific applications. But once digital got “good enough” and cheap enough, the mass market shifted almost overnight.

That’s where we are with sodium batteries. They’re finally “good enough.” And if they’re really 90% cheaper? The shift could happen faster than anyone expects. The 2020s might be remembered as the decade when energy storage became essentially free. And that does change absolutely everything.