As the global energy transition accelerates, the race to develop next-generation battery technologies is beginning to reshape demand for a new suite of critical minerals.
While lithium-ion batteries continue to dominate electric vehicles (EVs) and energy storage systems, sodium-ion technology is emerging as a commercially viable alternative. This is largely driven by lower costs, improved supply chain security, and the abundance of raw materials.
China, already the world’s battery manufacturing powerhouse, is leading the charge.
Shanghai Metals Market (SMM) reports that in July 2026, China’s sodium-ion battery cathode material production rose 13% month-on-month and spiked 55% year-on-year, with polyanion-type materials further increasing their share to 88%.
Polyanion-type materials are chemical compounds featuring a stable three-dimensional network built from strong covalent bonds between metal-ion polyhedra and polyanionic groups such as phosphates, sulphates, or silicates.
In August, sodium-ion battery cathode demand is expected to continue strengthening, with clear month-on-month growth in orders, as reported by SMM.
SMM reports that some enterprises will continue capacity ramp-up, with August cathode production expecting to increase another 11% month-on-month, expanding year-on-year growth to 83%.
For hard carbon anodes, market volume growth expectations are clear, however, SMM notes that the tight supply pattern for high-end products is likely to persist, with August hard carbon production expecting to grow 13% month-on-month and surge 149% year-on-year.
The trend signals growing confidence in sodium-ion chemistry as manufacturers seek alternatives to increasingly competitive lithium markets and diversify battery supply chains.
For the mining industry, the rise of sodium-ion batteries represents more than just another battery innovation. It has the potential to reshape investment across the raw materials value chain, creating new opportunities for companies advancing projects in commodities such as graphite, iron, manganese, vanadium, and high-purity sodium compounds.
Graphite gains
Graphite is an essential material in lithium- and sodium-ion batteries that power EVs. It is the single largest component by weight in every EV battery, with each vehicle requiring 50–100 kilograms of graphite.
Global graphite production remains heavily dominated by China, which controls roughly 90% of anode materials and 98% of graphitisation capacity. However, Western nations are enforcing strict tariffs on Chinese graphite, while advancing projects through to feasibility stages to diversify supply.
Graphite One (TSX-V:GPH) CEO Anthony Huston previously told this news service that while the World Bank projected a 494% increase to graphite demand between 2020 and 2040, the world is proving a more moderate shift to electrification, which could still see growth up to 400% for the commodity.
“Graphite is simply too versatile a material — it’s conductive, it’s light-weight, and heat- and corrosion-resistant,” Huston says.
Graphite One is focused on advancing the US’s largest natural graphite deposit via its Graphite Creek Project in Alaska.
The project’s Feasibility Study highlights a US$6.4 billion ($9.1 billion) pre-tax net present value, with an internal rate of return of 30% and a payback period of 7.3 years. The study also outlines a 20-year mine life for Graphite Creek, based on exploration of 1.9 kilometres of the total 15.3-kilometre-long geophysical anomaly.
At full capacity, the secondary treatment plant aims to process 175,000 tonnes of natural graphite, and produce 256,000 tonnes of manufactured graphite products annually.
In mid July, Graphite One advanced permitting for a proposed active anode materials plant in Ohio, US, as previously reported. Initial production is planned at around 10,000 tonnes per year, expanding to 25,000 tonnes annually.
E-Power Resources’ (CSE:EPR) Tétépisca Project is one of the few graphite projects under development in Québec, Canada. The project has all the infrastructure needed already in place, including year-round highway access, and is located near the Manicouagan Hydro-Electric dam, ensuring clean, renewable hydroelectric power for the site.
The overall Tétépisca district has resources of 126.6 million tonnes (Mt) measured and indicated at 14.1% graphitic carbon and 34.1Mt inferred at 14.5% graphitic carbon.
Earlier this year, E-Power completed a private placement, raising C$517,751 ($525,312), which will be used to advance field work at Tétépisca.
Iron opportunities
The most widely used and vital metal in the world, iron plays a major, low-cost role in sodium-ion batteries. The metal replaces expensive or scarce metals, such as cobalt, nickel, and lithium.
Iron makes up about 90% of all refined metal production, serving as the base for predominantly steel and cast iron which is used in construction, transportation, and manufacturing.
Global iron ore production is projected to grow by roughly 4.5% this year alone, reaching between 2.68–2.73 billion tonnes. This output is driven by major project ramp ups in Australia, Brazil, India, and West Africa.
Fenix Resources (ASX:FEX), owner of a diversified Mid-West iron ore, port, and rail asset base, delivered a record Q2 2026 in every area of its business.
Executive John Welborn says that collectively, the company shipped 1.299 million wet tonnes of iron ore during Q2 across 21 vessels.
“The strong June quarter performance allowed us to achieve total iron ore production for FY26 of 4.4 million tonnes, within our guidance range of 4.2Mt to 4.8Mt,” Welborn says.
“The successful completion of FY26 supports delivery of our promised three-year production plan. During FY26 the Fenix team commissioned the Beebyn-W11 mine and established the Beebyn Hub which allowed us to grow tonnes shipped by 83% and finish the year with $81 million in cash.”
At the development stage, Hawsons Iron’s (ASX:HIO) namesake project located in Broken Hill, New South Wales, is positioned to deliver reliable, ‘high-grade’ magnetite concentrate through innovative dry-processing technology.
Managing Director Tom Revy previously explained to Mining.com.au that Hawsons is well placed to capitalise on the current global move toward greener steel supply chains.
“It’s not a pipe dream. Internationally, green steel is here and now, and very high on the agenda,” Revy says.
“With our location, infrastructure access, and focus on reducing capex and opex while increasing revenue, Hawsons is positioned as a once-in-a-lifetime material opportunity.”
A Prefeasibility Study (PFS), completed in December 2025, highlights that the project to has a 2.3 billion tonne ore reserve estimate at an average grade of 11.7% Davis tube recovery and 16.7% total iron.
Based on a production figure of up to 12Mt per year of greater than 68% iron-magnetite concentrate, the project is expected to have a 26-year mine life. Hawsons Iron also has a pre-tax net present value of $1.87 billion, with an internal rate of return of 11.9%, following updating the PFS in May 2026.
The Hawsons Iron Project hosts a production target of 257Mt of magnetite concentrate over the life of the mine. The production target is limited to the probable ore reserves only.
Vanadium rising
Meanwhile, vanadium in sodium-ion batteries is used as a key component in advanced cathode and anode materials. Due to vanadium’s multiple accessible oxidation states, it allows for high operational voltages, multi-electron reactions, and fast ion movement.
According to Fortune Business Insights, the global vanadium market size was valued at US$3.62 billion in 2025 and is projected to grow to US$5.33 billion by 2034, exhibiting a compound annual growth rate of 4.4%.
The Asia Pacific region dominates the vanadium market with a 73% share in 2025, valued at around US$2.78 billion.
This news comes as the Western Australian Government works to deliver the nation’s largest vanadium battery energy storage system (VBESS) in Kalgoorlie. VBESS is a landmark project involving the installation of a 50 megawatt/500 megawatt per hour vanadium flow battery (VFB).
Emerging producer Australian Vanadium (ASX:AVL) owns one of the ‘largest and highest-grade’ vanadium deposits being developed globally. The company aims to be the largest vanadium developer in Australia.
Located in the Murchison Province, the Australian Vanadium Project is serviced by roads and infrastructure, making it easily accessible to the regional airport and proximity to the Port of Geraldton.
CEO Graham Arvidson says as renewable power generation continues increasing, the need for grid-scale, long-duration energy storage will only continue to grow.
“Vanadium flow batteries are a proven technology providing energy storage over a four to 12-plus hour time frame, with minimal degradation in performance over an asset life of more than 30 years,” Arvidson says.
“China is already driving a move to VFB energy storage, with over 20 gigawatts per hour of VFB projects approved or under construction. By the end of 2025, VFBs are forecast to account for 15–20% of China’s installed battery storage capacity.
“With a large global and domestic opportunity for long duration energy storage, Australian Vanadium continues to explore strategies to capture value across the vanadium supply chain.”
Also in the Murchison region of Western Australia, Viking Mines’ (ASX:VKA) Canegrass Battery Minerals Project is in the development phase following a pit optimisation study delivering an in-pit mineral resource ranging from 31Mt to 92Mt.
Canegrass hosts a global resource of 146Mt @ 0.7% vanadium pentoxide, 31.8% iron and 6.6% titanium dioxide.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock, E-Power, Hawsons Iron, & Australian Vanadium
