Runaway success of Li-ion raises bar for battery innovators

When news broke that Natron Energy — a promising US battery startup developing sodium-ion cells — had ceased operations in September 2025, it raised questions about the prospects for alternative cell chemistries in mission-critical energy storage applications such as data center UPS systems. Will any alternative batteries, primarily those based on nickel-zinc, offer a practical and economic alternative to lithium-ion (Li-ion) chemistries?

Discussions with major static UPS system vendors Eaton, Schneider Electric and Vertiv suggest a long and difficult path ahead for any battery challengers. Meeting the stringent technical and commercial standards — including volume availability at competitive costs and the financial health of the manufacturer — in mission-critical energy storage applications is a gradual and expensive process for battery companies, during which time Li-ion technology continues to evolve.