Deflationary Energy Is Here in 2025

China is solely focused on its economic present and future and that is about to achieve dividends in the one of the most dramatic turnarounds in the greater tech sector in possibly the past 20 years.

Do not fight this trend – remember that the trend is your friend.

It’s your job to position yourself strategically from here on out.

If you thought China was hard to compete with on price and quality in tech, then look no further than the recent cutting edge developments that are on the verge of rolling out in the Middle Kingdom.

Enter sodium-ion batteries!

Cars are about to experience the greatest wave of deflationary force that the world has ever seen.

This is happening all while the only sodium-ion based company in greater North America has collapsed.

America based Natron Energy had secured hundreds of millions in funding and planned a $1.4 billion gigafactory in North Carolina, has ceased all operations, leaving the entire market wide open for China’s CATL—a $50 billion battery giant that recently unveiled breakthrough sodium-ion technology.

With CATL’s batteries promising 10,000 charge cycles, 90% lower costs than lithium-ion, and mass production beginning this December.

Sodium-ion batteries represent a seismic shift in energy storage, offering advantages that lithium-ion simply cannot match.

Unlike lithium, which is scarce, environmentally destructive to mine (it consumes vast quantities of fresh water), and prone to dangerous fires, sodium is abundant, easy to extract, and inherently safer.

Yet while Natron’s technology was promising, China’s CATL has already commercialized sodium-ion batteries at an unprecedented scale. CATL’s latest breakthrough claims 10,000 cycles while retaining 90% capacity, meaning an EV battery could outlast the vehicle itself.

CATL is offering sodium-ion batteries as low as just $10 per kilowatt-hour, compared to $100/kWh for lithium-ion.

With Natron’s collapse, CATL now faces no serious competition in North America for sodium-ion batteries. South Korean manufacturers, once leaders in lithium-ion, are reportedly panicking over CATL’s cost and performance advantages. The implications extend beyond batteries: energy-intensive industries like AI data centers, which require massive backup power, will now depend on Chinese supply chains.

Rising capital costs, supply chain disruptions, and geopolitical instability have crippled Western manufacturers, while Asian giants like CATL benefit from state-backed funding and economies of scale.

As governments and corporations push for renewable energy adoption, the lack of domestic battery production creates vulnerabilities. Data centers, military installations, and critical infrastructure could soon depend on foreign-made batteries—leaving them exposed to supply chain disruptions or geopolitical leverage.

Mass production kicks off December 2025 at CATL’s 30 GWh Fujian facility, initially supplying Chinese automakers like Chery, BYD, and Li Auto for 30 EV models.

China has imposed export controls on battery tech since 2023.

American EV companies won’t be able to compete with this technology and will need to beg the Chinese for any supply.

American tech companies are ramping up data center construction for AI, but the total failure in creating cheap energy will come back to haunt them.

China has effectively broken through any Western defense and economically, the ball is in their court at this point.

Short-term, I don’t believe this will materially affect American EV companies like Lucid, Rivian, Ford, and GM.

However, China is about the long-game and this will hurt hard and American EVs (minus Tesla) will be a big short opportunity.