China Petroleum and Chemical Corp(Sinopec)and LG Chem,a South Korean chemical company,have signed an agreement to jointly develop key materials for sodium-ion batteries,targeting the burgeoning energy storage system and low-speed electric vehicle markets in China and around the world.

The collaboration will focus on accelerating the commercialization of crucial components,including cathode and anode materials,for sodium-ion batteries.

Both companies are also exploring new business models for the technology,and plan to expand their partnership into broader new energy and high-value materials sectors in the future.

Sodium-ion batteries are gaining significant attention as a viable alternative to lithium-ion counterparts and,according to Sinopec,offer distinct advantages in terms of resource availability and cost-effectiveness.

They have also been lauded by Sinopec and other market players for enhanced safety,faster charging capabilities,and superior performance in low-temperature environments compared to lithium iron phosphate(LFP)batteries,with less capacity decay.

The market outlook for sodium-ion batteries is robust,particularly in China.Research institutions project the Chinese sodium-ion battery market to surge from an estimated 10 gigawatt-hours(GWh)this year to 292 GWh by 2034,representing an impressive compound annual growth rate of approximately 45 percent.

By 2030,China is expected to account for over 90 percent of global sodium-ion battery manufacturing volume.

"This joint development of sodium-ion battery materials will help both parties further enhance their technical strength and market competitiveness,promoting energy transition and sustainable development,"said Hou Qijun,chairman of Sinopec.