Sodium-ion Battery storage in Europe is moving into a larger commercial phase as Alfen and CATL deepen their partnership. The two companies have signed an agreement to deploy 5 GWh of sodium-ion battery energy storage systems across Europe. As a result, they are adding a new chemistry to an existing partnership that already focused on Lithium-ion battery storage projects.
Alfen, based in the Netherlands, develops and integrates solutions for smart grids, energy storage, and electric vehicle charging. Meanwhile, CATL, based in China, remains one of the world’s largest battery suppliers for Electric Vehicles and energy storage. Together, they aim to expand battery storage options for European grid applications and strengthen the region’s energy infrastructure.
Sodium-ion battery storage in Europe enters a new phase
This new agreement builds on earlier cooperation between the two companies. In 2023, Alfen and CATL signed a long-term battery supply agreement. Then, in 2024, they expanded that deal to support rising demand for Alfen’s energy storage systems in Europe. Now, the 5 GWh sodium-ion deployment plan marks the next step in that relationship.
Importantly, the companies want to diversify battery technologies for stationary storage. Sodium-ion batteries can support medium- and large-scale projects. In addition, they can help companies widen their materials strategy and improve cost planning. Therefore, this agreement gives Alfen more flexibility as it competes for European storage tenders.
Why Alfen and CATL are scaling sodium-ion battery storage in Europe
For Alfen, the agreement supports a broader energy storage portfolio. The company plans to use sodium-ion batteries to diversify materials across its product range. At the same time, it wants to optimize product costs and improve its position in competitive bids. Consequently, Alfen can offer more tailored storage solutions for European customers.
For CATL, the partnership offers a practical route to deploy sodium-ion batteries in real European grid-connected applications. That matters because operational experience helps refine products for local market needs. Furthermore, it supports CATL’s international expansion in stationary battery energy storage systems.
CATL said it operates 20 battery manufacturing facilities worldwide. The company has also invested about CNY 10 billion, or roughly EUR 1.2 billion, in sodium-ion battery research and development since 2016. Because of that long-term investment, CATL has continued to improve material design, energy density, and manufacturing processes.
Sodium-ion battery storage in Europe gains support from CATL technology
CATL recently introduced a sodium-ion storage battery that remains compatible with its 587 Ah lithium battery cell format. This design choice matters for system integrators. It allows easier integration into existing platforms and can reduce adaptation costs. As a result, project developers may adopt the technology faster in utility-scale storage systems.
The new sodium-ion cell delivers more than 300 Ah of capacity. It reaches an energy density of around 160 Wh/kg. In addition, CATL cites system efficiency of 97%. The company also says the battery can exceed 15,000 cycles while retaining 80% capacity. Its operating temperature range spans from -40 C to 70 C, which supports use in varied climates and demanding grid conditions.
CATL is targeting this chemistry for stationary storage applications lasting two to eight hours. Those use cases include renewable energy integration, shared storage systems, and data centers. Moreover, the battery uses a hard carbon anode and a layered oxide cathode. It avoids cobalt and nickel, and it replaces copper with aluminum. CATL also says the design passed nail penetration, crush, and overcharge tests without thermal runaway.
Sodium-ion battery storage in Europe and CATL’s wider rollout
The Alfen agreement follows another major sodium-ion supply deal announced by CATL in April. At that time, the company signed what it described as the largest sodium-ion battery supply agreement to date. That contract covers 60 GWh of batteries for Chinese storage integrator HyperStrong over three years. According to CATL, the deal showed that sodium-ion technology is ready for large-scale deliveries.
That momentum adds context to the new European deployment plan. While the 5 GWh agreement focuses on Europe, it also signals growing commercial confidence in sodium-ion storage. In turn, the Alfen partnership gives CATL a strong opportunity to demonstrate performance in European power markets and grid environments.
What the 5 GWh agreement means for Europe
Europe needs more flexible storage as renewable power capacity grows. Battery systems help balance supply and demand, support grid stability, and improve power reliability. Therefore, a 5 GWh sodium-ion rollout could become an important addition to the regional storage market.
For Alfen, the partnership aligns with its broader mission to strengthen Europe’s energy infrastructure. For CATL, it creates a path to expand sodium-ion systems internationally with a major European partner. Most importantly, the agreement combines manufacturing scale, storage integration expertise, and a clear commercial target.
Overall, the deal keeps the core focus on practical deployment. Alfen and CATL are not just discussing future potential. Instead, they are planning real projects and measurable volume in the European market. With 5 GWh targeted under the agreement, sodium-ion battery storage in Europe now has a stronger commercial foothold in 2026.
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