Alfen, CATL Sign 5 GWh Sodium-Ion Storage Deal for Europe

Alfen and CATL will roll out 5 GWh of sodium-ion battery energy storage across Europe under a newly signed agreement, marking a chemistry shift for two firms whose earlier cooperation centered on lithium-ion projects.

The two first struck a long-term battery supply arrangement in 2023 and widened it in 2024 to serve rising European storage orders.

CATL had already committed volume to the same chemistry in April, when it agreed to supply 60 GWh of sodium-ion batteries to Chinese storage integrator HyperStrong over three years.

The cell behind the deal carries more than 300 Ah of capacity and an energy density near 160 Wh/kg, with system efficiency reaching 97%. It holds a cycle life above 15,000 cycles while keeping 80% of capacity.

According to ess news and pv magazine, CATL frames the contract as an early stage of mass production that moves sodium-ion toward a possible 30% to 40% cost advantage over lithium iron phosphate (LFP) batteries.

Lithium supply is tightening at the same time. LFP storage cells rated at 314 Ah have risen in price by roughly 20% over the past six months, a move ess news and pv magazine tie to constrained lithium supply and stronger demand.

CATL has put around CNY 10 billion (EUR 1.2 billion) into sodium-ion research and development since 2016. The company said it runs 20 battery manufacturing plants.