The U.S. is Getting its First Sodium-Ion Grid Storage Factory

Our power grids are facing a massive test as data centers and AI quickly expand. The country needs a lot more energy storage to keep up with these new technologies. Peak Energy believes the answer lies in sodium-ion batteries. The company recently picked Sacramento, California, for their new factory.

The 183,000-square-foot facility will be the first in the U.S. dedicated to grid-scale sodium-ion storage. It will build up to 4 gigawatt-hours of battery systems every year, which is enough to power nearly four million homes. Production is scheduled to begin in the first quarter of 2027.

Why Sodium-Ion is a Better Option

Right now, big grid batteries usually require heavy cooling, but Peak’s systems are passively cooled instead. This removes refrigeration costs, which could save California ratepayers an average of $100 million a year. These batteries cut storage costs by 20 percent, promise a 99 percent uptime, and can run for over 20 years without scheduled maintenance.

Peak already has over 6 gigawatt-hours of customer commitments from buyers like Jupiter Power, Energy Vault, and RWE Americas. They also have a partnership with General Motors to use GM’s cell technology.

“America needs energy storage that is lower cost, more affordable, more reliable and purpose-built to meet the demand coming onto the grid,” said Landon Mossburg, CEO and Co-Founder of Peak Energy. “This facility is proof that America can lead not only in inventing the technology, but in building it at scale. With our manufacturing facility in Sacramento, we’re enabling American energy innovation to lower electric bills while creating high quality jobs.”

Benefiting the Local Economy

Sacramento won the sodium-ion factory after a nationwide search. The project brings up to $71 million in capital investment and 239 new local jobs over the next 18 months. These jobs pay an average annual wage of more than $90,000. Peak’s growth is also backed by a $10.5 million CalCompetes tax credit from the state. By 2030, Peak expects to create 348 total new jobs between Sacramento and Burlingame.

“The future of energy is being built in California,” said Dee Dee Myers, Director of the Governor’s Office of Business and Economic Development (GO-Biz). “This state has always been the country’s center of energy innovation, and Peak’s investment in Sacramento is proof that we’re also the best place to manufacture those new technologies at scale, bringing good jobs, economic opportunity and critical infrastructure to our state.”

Myers added, “With the help of CalCompetes’ investment in this project, we are making sure that California’s energy transition is made in California by California workers.”