- Sinopec’s entry into the battery industry marks a significant shift towards clean energy and technological innovation.
- The Sinopec–LG Chem partnership on sodium-ion batteries strengthens China’s leadership in the global clean technology sector.
China’s largest oil refiner, Sinopec, has entered the battery market through a new joint venture with South Korea’s LG Chem. The partnership focuses on developing sodium-ion batteries for energy storage and low-speed electric vehicles, marking a significant step in China’s transition to clean energy.
According to LG Chem, sodium-ion batteries offer key advantages over lithium-ion models, as they are cheaper to produce, utilise more abundant materials, and perform better in colder conditions. The collaboration supports Sinopec’s long-term goal of becoming a global leader in clean energy and advanced chemicals, while also promoting sustainable development.
Despite being the world’s largest oil refiner, Sinopec acknowledges that China’s oil demand is nearing its peak. The company forecasts consumption will soon reach 16 million barrels per day, or 800 million metric tonnes per year. However, Sinopec recently reported a 32% drop in third-quarter profits, citing weaker crude oil prices and slower domestic demand.
As China remains the world’s leading electric vehicle market, sodium-ion batteries are becoming an attractive alternative for affordable electric mobility and large-scale energy storage. Research cited by Sinopec predicts global demand will grow from 10 GWh in 2025 to 292 GWh by 2034, with China expected to produce 90% of global output by 2030.
Through this venture, Sinopec is diversifying beyond fossil fuels, combining its industrial experience with cutting-edge battery innovation. The move positions the company as a major player in the next generation of clean energy and sustainable technology.