With a thick outdoor jacket to protect against minus 30 degrees Celsius temperatures and bitter winds, Calvin Quek joined car and technology enthusiasts huddled by a test track on the outskirts of a picturesque ski region in Inner Mongolia.

They watched Chongqing Changan Automobile electric SUVs and a sleek battery-powered coupe effortlessly navigate icy roads and steep snow-dusted slopes at the facility in Yakeshi, northeastern China. Yet for the crowd at the February demonstration, the most impressive factor was out of view.

Batteries powering the vehicles used sodium as their key raw material component, rather than lithium ¡ª the metal that¡¯s become synonymous with electrified transportation and the storage of renewable energy. The tests were a showcase for one of the world¡¯s first mass-production passenger EVs fitted with the alternative technology ¡ª an innovation that¡¯s long promised to deliver safer and low-cost rechargeable cells.

¡°I think this signaled a breakthrough moment for sodium-ion battery technology in EVs,¡± said Quek, executive director for nature finance at the Oxford Sustainable Finance Group, and a veteran observer of the energy transition.

By the middle of this year, Changan ¡ª a state-owned Chinese automaker and a local partner of Ford Motor ¡ª will begin sales of models fitted with sodium-ion technology from Contemporary Amperex Technology, the world¡¯s dominant EV battery manufacturer.

2026 ¡°could prove to be a pivotal year¡± for sodium batteries, and see the category begin to displace at least some demand for more familiar lithium-ion technology, according to the International Energy Agency.

¡°There has been increasing interest in adopting sodium-ion cells into EVs and stationary storage applications¡± over the past three years, said James Frith, principal at Volta Energy Technologies, a U.S.-based venture capital fund. ¡°We¡¯re at the point now where we¡¯re seeing sodium-ion systems being commercialized in these applications.¡±

Sodium-based batteries have become more appealing with advances in energy density, which mean they¡¯re now capable of powering vehicles and no longer restricted to less demanding categories like energy storage. The equipment also has a driving range between recharging that¡¯s almost comparable with some conventional equipment. For a typical SUV, a sodium-ion battery would likely offer about 350 kilometers of driving, compared to between 400 and 600 kilometers for lithium-based options, the IEA calculates.

Equally important is the technology¡¯s role as a potential shield from volatility in lithium prices. While still far below a peak touched in late 2022, prices of lithium carbonate in China surged almost 190% from a recent low last June to April 20, adding to pressure on battery costs from more expensive raw materials.

While not yet necessarily cheaper than the lowest-cost lithium options, sodium can help bolster supply chain resilience as the material is...