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China Daily | English | News | Dec. 4, 2025 | UndeterminedTech Development/Adoption

China Petroleum and Chemical Corp (Sinopec) and South Korean petrochemical giant LG Chem have signed a strategic agreement to jointly develop key cathode and anode materials for sodium-ion batteries. This collaboration targets energy storage systems and low-speed electric vehicle markets, where cost-efficiency is prioritized over the high energy density of lithium-ion batteries. Both companies will also explore new business models to commercialize the technology and plan to expand cooperation into broader new energy and high-value material sectors.

Sodium-ion batteries are gaining traction as alternatives to lithium-ion batteries due to their advantages in resource availability, cost-effectiveness, safety, faster charging, and better low-temperature performance with less capacity decay. This development aligns with China's rapidly growing power battery industry and new energy vehicle (NEV) market, which saw NEV sales increase by 40.3 percent year-on-year in the first half of 2025. The Chinese government plans to provide strategic guidance for NEV and advanced battery industries, promoting innovation in battery technology and infrastructure.

For Sinopec, the deal marks a significant diversification away from fossil fuels amid a slowing outlook for refined oil products. The company has been expanding its presence in the green energy sector with hydrogen refueling stations and EV charging infrastructure across China. The sodium-ion battery market in China is projected to grow from approximately 10 GWh in 2025 to 292 GWh by 2034, with China expected to dominate over 90 percent of global manufacturing by 2030. Sinopec’s chairman Hou Qijun highlighted that the partnership will enhance technical capabilities and market competitiveness while promoting energy transition and sustainable development.