The UK-based project is being run by Faradion, which is developing the sodium-ion technology, and manufacturer AGM Batteries, which is looking to commercialise it.

With funding in place, including additional investment by Finance Yorkshire, the partnership will look to develop a prototype to OEM standards by 2018.

Sodium-ion batteries use abundant elements, and are said to be 30% cheaper to manufacture than lithium-ion alternatives. It’s claimed that this could be production-ready by 2025, and help to improve the competitiveness of electric vehicles.

Faradion’s CEO, Francis Massin, said: “This project will help the automotive industry to develop a more stable, sustainable and cost-effective solution to electric vehicle power than is currently available. Faradion’s leading role in this is demonstrates its position as the driving force in the development of sodium-ion battery technology.”

Kevin Brundish, CEO of AGM Batteries, added: “AGM is uniquely positioned to take such technologies to market; in addition to the automotive industry, a low cost and safe battery technology has wide ranging opportunities including grid storage and oil and gas applications.”