Morgan Stanley Predicts Sodium-Ion Batteries Will Revolutionize Global Energy Market by 2035

Morgan Stanley has identified sodium-ion batteries, based on common salt, as a key driver of the next major energy revolution. In a recent report, the investment bank projects that sodium-ion batteries will grow from a negligible 2% market share in 2027 to 20% by 2030 and 37% by 2035. This rapid expansion will require approximately $800 billion in investments by the mid-2030s, transforming the technology from experimental to a global industry.

The appeal of sodium-ion batteries lies in their cost advantage, being 30% to 40% cheaper than current lithium-iron-phosphate (LFP) batteries, and their superior performance in extreme cold conditions, which is critical for renewable energy projects in northern regions where lithium batteries lose up to half their capacity. Automotive industry leaders are already preparing for this shift; General Motors has partnered with the U.S. startup Peak Energy to develop advanced sodium-ion cells for large-scale energy storage, with commercial production expected around 2028. GM holds exclusive U.S. manufacturing rights and anticipates that these batteries could eventually outperform existing lithium technologies.

Chinese manufacturers CATL and BYD have also begun serial production of sodium-ion batteries, integrating them into compact vehicles currently on the road. Morgan Stanley forecasts that this transition will restructure the industry, favoring large companies over smaller price-focused competitors and reducing global copper demand by about 200,000 tons, impacting commodity markets. Meanwhile, some companies like Ford continue to focus on lithium-based storage solutions.

If these predictions hold, sodium could become one of the world’s most strategic resources, central to the upcoming energy transformation.