Peak Energy to start 4-GWh sodium-ion ESS manufacturing facility in Sacramento

Peak Energy is building a large battery factory in Sacramento, California, to make sodium-ion energy storage systems — batteries that use sodium instead of lithium, generally at lower cost. The 183,000-square-foot facility is expected to produce enough batteries each year to store 4 gigawatt-hours of electricity, mostly for grid-scale use rather than individual homes. The company plans to start production and shipments in early 2027, backed by more than 6 gigawatt-hours in customer orders already lined up. The project involves a $71 million investment and is expected to create 239 local jobs, with support from a $10.5 million California state tax credit.

The technology itself is notable for homeowners keeping an eye on battery costs and reliability. Peak says its system is designed to run for more than 20 years without scheduled maintenance and without the battery refrigeration that many current systems need. Removing that refrigeration requirement, the company says, could save California ratepayers around $100 million a year and help bring down the overall cost of energy storage.

This news is about industrial-scale manufacturing, not a product you can buy for your house. But sodium-ion technology is also showing up in smaller residential batteries from other companies, and cheaper, longer-lasting grid storage can eventually help lower electricity costs and improve grid reliability in areas served by these systems, including in California.