Battery manufacturer Contemporary Amperex Technology Co. Ltd (CATL) announced on Sunday that it will equip Chery's electric vehicles (EVs) with its sodium-ion batteries, with Chery being the first automaker to use the technology. The two companies will also collaborate on launching a new battery brand called ENER-Q.

Sodium is a chemical element commonly found in salt and is chemically similar to lithium, which is currently the primary material used for power batteries in EVs. But sodium is a much cheaper alternative to lithium, making it an attractive option for battery manufacturers.