Swedish industrial start-up Northvolt says it will make new sodium batteries that could upend the lithium battery industry. 

The company is working on a sodium-ion battery, backed by giants including Volkswagen and Goldman Sachs, which eliminates lithium, cobalt, and nickel.

The companies say this new type of batteries could be made with local ingredients in many parts of the world, addressing supply chain volatility and China’s strong hold on production. 

The sodium-ion battery boasts an energy density of 160 watt hours per kilogram, comparable to lithium batteries used in energy storage. 

Northvolt CEO Peter Carlsson believes the sodium-ion batteries will be 25 per cent cheaper than lithium batteries, while also boasting greater sustainability and thermal capability. 

Carlsson estimates the technology's value at tens of billions, foreseeing significant orders from regions like the Middle East, Africa, and India. 

Northvolt says it aims to provide samples to customers in 2024 and achieve full-scale production by the end of the decade. 

The company is also preparing for an IPO, with expectations to be valued at around US$20 billion, inviting investment banks to pitch for roles in the listing. 

Northvolt has secured substantial funding, including €1.2 billion in convertible bonds and plans to unveil over US$5 billion in debt financing for its gigafactories and expansion projects in Europe and North America.