California startup to open first U.S. sodium-ion battery factory in Sacramento

Peak Energy announced Wednesday it will build a factory in Sacramento to manufacture sodium-ion battery systems at commercial scale, the first such plant in the United States. The lithium-ion batteries widely used for clean energy storage carry fire risks and depend on foreign-mined materials. Sodium-ion batteries use abundant sodium ash deposits and do not require active cooling systems.

Factory plans and production timeline The Sacramento plant will produce three to four shipping-container-sized systems per day, each containing nearly 8,000 cells. One system can power hundreds of homes for four hours. Peak Energy already holds $1.1 billion in pre-orders and operates a pilot project in San Francisco.

Initial cell supply will come from China, with later sourcing planned from other Asian countries.

Technology advantages and market position Sodium-ion systems cost more upfront than lithium-ion but eliminate cooling equipment, reducing operating expenses. The company says the design is quieter and safer. Customers with deposits include Jupiter Power, Energy Vault, and RWE Americas.

The company is also in advanced discussions with two major hyperscalers and works directly with an unnamed California utility.

State support and employment impact The factory is projected to create 239 jobs.

California awarded the company a $10.5 million tax credit. Peak Energy has not received federal clean energy tax credits. The chief executive said the company chose Sacramento for its proximity to a skilled workforce and the state's growing energy storage market.