China’s EV Giant Gambles $140M On Unproven Sodium Battery Tech In Huizhou

While lithium has dominated the EV battery conversation for years, Chinese manufacturers are aggressively pivoting toward sodium. Eve Energy just doubled down on this bet, pouring a cool RMB 1 billion (that’s $140 million) into a massive sodium-ion battery project in Huizhou. Bold move? Absolutely. Guaranteed success? Not even close.

The company broke ground on December 22nd at their headquarters, adding 90,000 square meters of space dedicated to these alternative power cells. Eve isn’t playing small ball either—they’re targeting 2 GWh of annual production. That’s enough to power thousands of vehicles with technology that’s still largely unproven in real-world applications.

Eve Energy isn’t alone in this sodium rush. BYD, China’s EV behemoth, is going even bigger with a 30 GWh sodium-ion plant in Xuzhou. Ten billion yuan investment. Not pocket change. They’re partnering with Huaihai Holding Group, targeting everything from cars to scooters. The facility represents a strategic collaboration agreement between BYD subsidiary Findreams Battery and Huaihai Group aimed at establishing Xuzhou as a battery production hub.

Why sodium? It’s cheaper, for one thing. The materials are everywhere. No need to fight over lithium mining rights in some remote desert. These batteries also don’t burst into flames as easily—a pretty nice selling point if you ask me. Great for small EVs where range isn’t everything and cost matters. This pivot toward sodium represents a significant investment in renewable energy which could help reduce the massive carbon footprint associated with traditional vehicle fuels.

Eve’s project isn’t just about batteries. Half the space—50,000 square meters—will house Jinyuan Robotics AI Center. Smart move. They’re basically creating a giant laboratory where AI meets battery production. Real-time tweaking. Constant improvement. The center will focus on intelligent upgrades in lithium battery manufacturing processes to boost operational efficiency.

Eve Energy ranks fifth among China’s battery manufacturers, with a 3.84 percent market share. Not top dog, but certainly at the table. Their stock (SHE: 300014) has investors watching closely.

The sodium battery race is heating up across China. Even China Datang is building what they claim will be the world’s largest sodium-ion storage project in Hubei. Everyone wants a piece.

Whether consumers will ultimately embrace the technology remains the billion-yuan question.