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Energy transition worth its salt

July 14, 2025
Tesla Model X electric cars recharge their batteries. — Reuters/File
Tesla Model X electric cars recharge their batteries. — Reuters/File

The expression ‘worth its salt’ has ancient origins, referring to the high value of salt in Roman times, when soldiers were partially paid in this essential mineral.

In today’s context, especially for Pakistan, the phrase gains an ironic twist, not just metaphorically, but geologically. The country’s vast salt reserves may literally hold the key to a viable, sovereign energy transition through the development of sodium-ion battery technology. As policymakers toy with ideas ranging from data centres to crypto mining to absorb surplus electricity, it’s time to consider whether Pakistan’s competitive advantage lies not in mining cryptocurrency, but in mining sodium.

Recently, Pakistan’s Power Division and Special Investment Facilitation Centre (SIFC) deliberated over the possibility of using excess power capacity for energy-intensive cryptocurrency mining. With an installed generation capacity surpassing 44,000+MW and persistent underutilisation due to falling grid demand and tariff affordability issues, this idea may appear tempting.

But crypto mining is a short-term arbitrage at best. Producing a speculative digital asset with volatile value, no local supply chain and minimal long-term developmental linkage consumes vast energy. In contrast, salt mining for sodium-based energy storage represents a tangible, scalable and industrially rooted pathway, directly supporting national goals of renewable integration, industrial diversification and energy resilience.

Lithium-ion and sodium-ion batteries share fundamental structural similarities. Both operate through the intercalation and deintercalation of ions between the anode and cathode during charge and discharge cycles. However, the two technologies differ significantly in material composition, cost structure, and performance parameters. Lithium-ion batteries typically offer higher energy density (ranging between 180–250 Wh/kg), making them ideal for weight-sensitive applications like electric vehicles and consumer electronics. They rely on critical minerals such as lithium, cobalt and nickel, which are geopolitically concentrated and environmentally burdensome to extract.

In contrast, sodium-ion batteries, while lower in energy density (currently in the range of 120–160 Wh/kg), use abundant, inexpensive and widely available materials such as sodium, iron, and manganese. Their performance in thermal stability, safety, and low-temperature operability makes them especially suitable for stationary energy storage and rural electrification. Sodium-ion batteries also avoid many of the supply chain risks associated with lithium and cobalt, giving them an edge in cost stability and scalability.

While lithium-ion batteries will likely remain dominant in the electric vehicle sector due to their superior energy-to-weight ratio and longer commercial maturity, they are not the optimal solution for all segments of the energy transition. For Pakistan – where the power sector is increasingly shaped by distributed solar generation, and the need to integrate intermittent renewables – sodium-ion batteries present a more economically and environmentally viable path. Their compatibility with Pakistan’s abundant salt reserves, local biomass resources, and existing chemical industries provides a compelling opportunity to localize storage manufacturing and reduce dependency on imported technologies. For grid-level storage, especially in solar-rich regions, sodium-ion batteries are not just an alternative – they may very well be the optimal choice to power the next phase of Pakistan’s clean energy revolution.

Pakistan possesses an abundant and underutilised resource in the form of sodium chloride (NaCl), with the Khewra Salt Mine being the pink jewel of Asia. Through the well-established Downs Process, this salt can be transformed into metallic sodium via electrolysis at high temperatures. This refined sodium becomes the foundational component of sodium-ion (Na-ion) batteries, which are emerging globally as the next frontier of energy storage technology, offering lower cost, greater material abundance and better thermal stability than their lithium-ion counterparts.

Unlike crypto mining, sodium-ion battery manufacturing aligns with the real economy. It supports local value chains, from biomass-based hard carbon anode production (using sugarcane bagasse or rice husk) to cathode material synthesis using iron, phosphate or manganese – locally available minerals. Importantly, sodium-ion batteries are not only cheaper to produce but also safer, non-flammable, and ideal for grid-level storage, especially in countries like Pakistan where ambient temperatures often exceed 40 C. This makes them perfect for stabilising renewable energy and addressing load variability in the power system.

Now consider Pakistan’s present challenge: distributed generation capacity is expanding due to rooftop solar uptake – net metered solar has now crossed 5500+MWs – yet the lack of affordable and scalable storage limits their integration. Transmission constraints and non-coincident generation (solar at noon, demand at night) worsen curtailment and underutilisation. This is where sodium-ion storage can transform Pakistan’s grid dynamics.

For instance, a pilot grid-scale sodium-ion battery storage system of 100 MWh could be installed near a wind-rich corridor in Jhimpir, a solar-heavy region in Bahawalpur or in the centre where the demand exceeds the generation. The aim would be to smooth out intermittency, shift surplus generation to evening peak hours, and avoid curtailment of cheap renewable energy. If replicated across 10 locations, such a model could offset at least 500MW of peak demand, equivalent to the output of a mid-sized RLNG plant – without burning a cubic foot of imported gas.

Sodium-ion storage can also play a crucial role in demand-side management for DISCOs. These batteries can be used for time-shifting tariffs, enabling load leveling in areas where industrial demand peaks at night. Combined with rooftop solar and local battery storage, they can also form the backbone of microgrids for rural electrification, helping Pakistan achieve SDG-7 goals and reduce losses from expensive diesel generators.

From a fiscal standpoint, the crypto mining model locks the country into high energy use with low industrial spillover, whereas sodium-ion manufacturing can be linked to exportable value chains. Global battery demand is projected to reach 3,000 GWh by 2030, with sodium-ion expected to carve a growing niche, especially for grid storage and low-speed e-mobility. By establishing local sodium refining, electrode material production and cell assembly, Pakistan can integrate itself into these emerging markets – much like how Vietnam and Indonesia have built supply chains around nickel and lithium.

Investment in sodium-ion battery R&D would also catalyse Pakistan’s scientific ecosystem. Universities and technical institutes could be linked into global innovation networks, funded through climate finance or technology transfer under Article 6 of the Paris Agreement. Unlike crypto mining, which is inherently exclusionary and speculative, sodium-ion storage is inclusive, green and economically grounded.

Pakistan’s competitive advantage lies not in mining the intangible but in mining its geology, knowledge, and agricultural waste. Salt, when paired with strategic foresight, can become the anchor of a new clean energy industrial revolution. The sodium-ion pathway doesn’t just absorb excess electricity; it stores it, stabilises it and delivers it when and where it is needed most.

This opportunity aligns perfectly with the strategic ambitions of CPEC Phase 2, which aims to pivot from infrastructure-heavy investments toward industrial cooperation, technology transfer, and export-led manufacturing. Special Economic Zones (SEZs) under CPEC – such as Allama Iqbal Industrial City (Faisalabad), Dhabeji (Sindh) and Rashakai (Khyber Pakhtunkhwa) – provide ready industrial platforms where Chinese battery manufacturers can relocate sodium-ion production lines, leveraging low labour costs, local raw materials and preferential trade access to regional markets.

By co-developing sodium-ion battery manufacturing in SEZs, Pakistan can reduce its reliance on imported lithium batteries, support local employment and insert itself into emerging global battery supply chains. Joint ventures between Chinese firms like CATL or HiNa Battery and Pakistani industrial groups can fast-track this transition, particularly if backed by policy support, concessional financing and coordinated R&D initiatives.

For grid-level storage, especially in solar-rich zones like Cholistan or wind corridors like Jhimpir, sodium-ion batteries are not just an alternative but the practical choice. They offer the technical adequacy, local material alignment, and industrial scalability necessary for Pakistan to move from a power-deficient to a power-smart nation. Thus, Pakistan’s energy transition – if built on the bedrock of salt – can truly be worth its salt, both idiomatically and industrially.

The verdict is clear. If we are serious about an energy transition that is just, local and lasting, then it must be worth its salt. And Pakistan, with its mineral wealth and scientific potential, may finally find its sovereign storage solution not in distant lithium fields or server racks of crypto farms, but in the shimmering pink mines of Khewra.

Twitter/X: @Khalidwaleed_ Email: [email protected] The writer has a doctorate in energy economics and serves as a research fellow in theSustainable Development Policy Institute (SDPI).