Could Egypt’s battery storage push be helped by pioneering the emerging sodium-ion battery technology? Draschem has recently won government backing to build a sodium cyanide plant in Alexandria. The USD 200 mn project’s first phase is set to yield 50k tons annually (mostly for gold mining), and the second phase will either double output or make additional cyanide derivatives — but what caught our attention is the third phase, which will produce sodium-ion battery components.

Why it matters: The move to produce sodium-ion batteries could have a big knock-on effect for our renewables ambitions, helping us move away from the more expensive lithium batteries that currently dominate battery energy storage systems globally. Sodium-ion batteries are an emerging technology that has the potential (once scaled) to be cheaper, as they require only salt as the main material input, instead of relying on the very limited — and imported — lithium supply in the ground.

Sodium-ion batteries — what they are (and aren’t)

Pros: Sodium is the sixth most common element in Earth’s crust and can be extracted from common salt. By contrast, lithium is rare, geographically concentrated, and currently imported. Sodium-ion cells also avoid nickel, cobalt, or graphite shortages. Many sodium chemistries have lower internal resistance, meaning they can charge and discharge quickly — ideal for heavily used grid batteries.

Cons: Sodium-ion batteries are still an emerging technology, which means early adopters are going to need to rely on a decent amount of R&D spend. Due to this and because we’re yet to see the production of these batteries fully scaled, the cost of these batteries is often just behind lithium-ion batteries per kWh, despite their potential to have a lower price point. Unlike lithium-ion batteries, sodium-ion batteries are inherently less energy-dense and consequently heavier, which reduces their usability in the automotive industry and consumer electronics.

Globally, the sodium-ion battery race is on

Egypt wouldn’t be alone in looking to build sodium-ion batteries as a real alternative: China has poured investments into research and factories, with battery giants such as CATL having sodium-ion lines. Even the US is joining the race, with startups like Natron moving forward in projects to develop these types of batteries. Analysts project global sodium-ion capacity ramping from 10 GWh in 2025 to perhaps more than 70 GWh by 2030.

Why the rush? One reason is to break China’s domination of lithium mining. Currently, China controls 80% of lithium-ion manufacturing and almost all refined lithium, graphite, and cathode production. Sodium-ion batteries open the door to new supply chains, since sodium can be sourced from rock salt or brine. Even though China also leads in sodium-ion cells, the material base is about 1k times more abundant than lithium, making alternative supply chains across the world easier to build.

Can Egypt lead, or just follow? We are getting started with sodium-ion batteries. Draschem’s project is mostly making sodium cyanide, with battery components as a later phase. Egypt doesn’t yet have a scaled battery cell manufacturing ecosystem, with many ongoing lithium-ion battery manufacturing projects reliant on imported lithium-ion technology and know-how. On the plus side, we have strengths: Egypt’s location strengthens our pitch as an export hub to Africa and the Middle East.

Implications

Cheap, homegrown sodium batteries could accelerate our renewables buildout: Lower battery costs mean cheaper solar-plus-storage projects — effectively shifting more peak demand off gas.

There are economic benefits, too: Local battery manufacturing would cut lithium’s import bill.

But it’s not ensured

It’s a bold wager, and critics will have questions: Can the country really produce battery cells at scale? Draschem mentions components, but building full battery modules means additional steps (anode/cathode fabrication, cell assembly, power electronics, etc.).

The plan’s timeline also matters: The first phase only starts in 2028, and those battery components won’t arrive overnight. By then, global players may have advanced further, while lithium-ion costs keep dropping and new alternatives start rising.

Regulatory hurdles remain: Egypt still needs clear storage regulations — defining storage as an asset class, grid codes for batteries, and stable revenue schemes. Without that, even cheap batteries sit idle.

Financing is another issue: BESS projects are still seen as “ revenue-light ” and rely on project-by-project agreements. If investors doubt how Egypt will pay for stored electricity or ensure grid access, plans may stall.

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