Efficient energy storage is a vital part of the global transition to clean energy due to the use-it-or-lose-it nature of many renewable energy sources. To this end, pioneering new battery energy storage systems (BESS) is key to storing renewable power and ensuring their broad integration into the global energy system. 

Today’s energy storage landscape spans a range of battery chemistries, from widely deployed lithium-ion batteries, lead-acid batteries to other emerging chemistries, each offering different trade-offs in cost, capacity, life cycle, safety and environmental impact. As technology advances, the choices in BESS have also expanded.  

Large scale BESS is already playing a growing role in capturing excess power, stabilising grids, and enabling reliable, round-the-clock electricity supply. More recently, attention has turned to next-generation alternatives, with sodium-ion batteries gaining momentum amid a wave of reported technological breakthroughs.  

This year, Malaysia too has joined the conversation with the introduction of locally available sodium-ion batteries, marking an important entry point for national adoption. As the nation grows its renewable energy (RE) capacity, sodium-ion batteries present a compelling solution for advancing net-zero goals while securing a more resilient power ecosystem.   

Global momentum pushes sodium-ion toward mainstream adoption 

Since the 1990s, lithium-ion batteries have dominated the global energy storage market, reaching an estimated market size of USD 75.2 million in 2024, thanks to their high energy density and long lifecycle. However, the rising demand for battery materials including lithium has led to growing concerns over potential supply shortages, price hikes, as well as environmental impact. 

These concerns have led to battery makers exploring alternative raw materials to lithium, and one of the most viable options is the sodium-ion battery. Sodium-ion has a big advantage over lithium as it is more abundant, less complicated to extract, less expensive, and requires fewer chemicals that are harmful to nature.  

Sodium is the sixth most abundant element on Earth

Sodium is the sixth most abundant element on Earth, at levels about 1,400 times higher than lithium, and can be extracted from seawater, a nearly unlimited resource. The well-established, eco-friendly extraction and processing methods for sodium minimise the need for new mines and reduce reliance on more resource-intensive materials such as lithium, cobalt, and nickel.  

Their greater safety and stability support simpler and more efficient recycling processes. Its materials can be recovered with lower energy consumption, and by reusing the battery components in new cells, sodium-ion technology minimises waste and lowers the demand for virgin materials, helping reduce environmental impact while supporting a circular economy.  

What’s more, sodium-ion batteries are non-flammable, more powerful, faster to charge, and can withstand up to 50,000 recharge cycles – 5-10x more than lithium-ion batteries. According to BloombergNEF, sodium-ion batteries could account for up to 23% of the stationary storage market by 2030, which translates to more than 50GWh. 

Global players including Japan’s electronic giant, Panasonic and the world’s largest lithium-ion manufacturer from China, Contemporary Amperex Technology (CATL) are accelerating research and development (R&D), signaling a major shift in both grid and mobility markets. According to Nikkei Asia, China has been dominating sodium-ion battery innovation over the years, accounting for 53% of the 9,862 global patents, followed by Japan (12%), and the US (7.3%).  

In 2024, China launched its first large-scale sodium-ion storage station, achieving an energy conversion efficiency of over 92%, outperforming most lithium-ion systems. Peak Energy in the US has also deployed the first sodium-ion battery storage systems to the national grid as part of a pilot with nine utility and independent power producers.  

While hurdles remain, particularly sodium-ion’s lower energy density and the need to scale up global manufacturing capacity, these developments suggest sodium-ion technology has reached a commercial tipping point. This opens a critical window for strategic adoption, allowing countries to shape domestic capabilities early rather than remain dependent on constrained supply chains. 

Next-generation batteries designed for Malaysia’s tropical climate  

Malaysia’s tropical climate presents unique challenges for traditional battery chemistries, with high temperatures accelerating degradation and raising safety risks. Sodium-ion batteries offer strong performance advantages in hot, humid environments, making them particularly ideal for the nation’s emerging e-mobility industry.  

Recognising this potential, Australian energy company Aeson Power launched a new range of sodium-ion automative batteries in Malaysia this year. Unlike lead-acid or lithium-ion batteries that degrade under heat, Aeson’s sodium-ion units can operate up to 80 °C – and still retain over 85% capacity after a month at 60 °C. 

This makes them well-suited for the country’s humid climate and heavy traffic conditions, where heat build-up often shortens a conventional battery’s lifespan. The new batteries can also charge in about 40 minutes, last up to 3,000 cycles, and offer stronger starts and a longer overall lifespan – critical traits to support EVs. 

In addition to safety and performance, sodium-ion batteries also present strategic advantages for the long-term security and sustainability of Malaysia’s energy system. Instead of relying on complex supply chains, sodium-ion batteries could empower the local production of batteries at significantly higher volumes. 

Given the abundance of sodium in nature, this also means its supply chain is largely free from geopolitical risk, with less exposure to global trade tensions that affect critical battery materials like lithium-ion. Sodium-ion batteries are thus aligned to Malaysia’s ambition under the National Energy Transition Roadmap (NETR) to diversify its clean energy ecosystem, strengthen local manufacturing, and reduce exposure to global supply chain volatility.   

Powering the next era of renewable energy innovation in Malaysia 

Beyond mobility, sodium-ion batteries present manufacturers, utilities, original equipment manufacturers (OEMs) and technology companies with new opportunities to meet future energy storage demands. This includes filling the role of batteries at the largest scale for powering critical grid operations, energy infrastructure, as well as hyperscale data storage systems.  

Malaysia’s expanding solar footprint in recent years, both utility-scale and rooftop, amplifies the need for affordable, safe, and climate-tolerant storage solutions. If effectively scaled, sodium-ion systems could help stabilise the grid, improve energy affordability and support Malaysia’s move towards a more resilient power system.  

That said, the technology is not without challenges. Sodium-ion’s lower energy density may limit its suitability for applications requiring compact, high-power storage, in part because sodium ions are larger and heavier than lithium ions. This means more material is needed to store the same amount of charge, resulting in less energy per unit mass or volume, while the technology’s global production capacity remains at an early stage. However, for stationary storage and climate-resilient applications, where safety, durability, and cost matter as much as density, these limitations pose fewer constraints and may be outweighed by sodium-ion’s strengths in heat performance, economics, and supply chain stability. 

Indeed, large-scale sodium-ion storage systems like those deployed in China and the US already demonstrate strong potential in this regard. Similar grid-scale demonstration projects in Malaysia would validate performance under local climate conditions and open pathways for storage-as-a-service models.  

The economic viability of sodium-ion batteries further strengthens their appeal, offering a more affordable alternative to widen clean energy access for all. Malaysia can accelerate deployment through targeted pilot programmes supporting EV fleets, e-mobility, industrial users, and community energy projects. 

Early adoption can stimulate R&D collaboration to advance cell technology, materials design, and battery management systems. Meanwhile, public-private academia partnerships will be essential to accelerate local expertise, improve technology readiness, and build a local supply ecosystem. 

Ultimately, sodium-ion technology could serve as a lever to build national capabilities, strengthening Malaysia’s competitiveness in Asia’s growing clean-tech market. By moving early, Malaysia can position itself not just as a technology adopter, but as a regional testbed and manufacturing hub for sustainable energy storage solutions.  

 Advancing regional capabilities to accelerate sodium-ion progress 

As Malaysia expands its renewable capacity, sodium-ion innovation promises to propel the nation further as a leader in clean and sustainable energy. Early participation in this global shift can define a new chapter in national energy resilience, manufacturing capability, and long-term sustainability leadership.  

the International Energy Agency (IEA) predicts sodium-ion batteries will account for around 10% of annual energy storage additions globally by 2030 and grow further beyond that

Indeed, the International Energy Agency (IEA) predicts sodium-ion batteries will account for around 10% of annual energy storage additions globally by 2030 and grow further beyond that. Key early applications will include data centers, mobility, electric vehicle fast charging, microgrids, and telecommunications companies.  

In the meantime, Malaysia’s sodium-ion ecosystem will benefit from increasing government incentives, strategic alliances, and growing consumer acceptance. Expansion of local supply chains and production capacity will reduce reliance on imported lithium, boosting energy resilience and economic growth.  

With the right investments and partnerships, sodium-ion technology could become a defining pillar of a new era of clean, resilient, and secure energy for Malaysia. By acting decisively now, Malaysia can translate early momentum into long-term strategic advantage, shaping leadership in clean energy storage while safeguarding its energy future.