A major industrial facility under construction in Northern California will soon produce sodium-ion batteries at a scale unprecedented in the United States. Covering 183,000 square feet, the plant is designed to manufacture 4 gigawatt-hours (GWh) of sodium-ion energy storage annually—enough to power nearly four million households—marking the first U.S. factory devoted exclusively to grid-scale sodium-ion battery systems.
The project aims to address rising energy storage demands driven by expanding electricity use, particularly from data centers whose power needs are expected to double by 2027. By focusing on sodium-ion technology, the plant seeks to provide utilities with a more cost-effective and geopolitically secure alternative to lithium-ion batteries, whose supply chains remain heavily concentrated in China.
Peak Energy, the company behind the project, highlights that sodium-ion batteries offer significant operational benefits. Unlike traditional lithium-ion systems, these batteries use passive cooling methods that eliminate the need for mechanical components such as fans or pumps, lowering maintenance and energy costs. The firm reports that their sodium-ion systems could reduce storage expenses by approximately 20% while maintaining a reliable 99% uptime. Production and initial shipments are scheduled to begin in early 2027.
Globally, lithium-ion batteries currently dominate energy storage, but their reliance on lithium—a raw material with volatile prices and geopolitical risks—has spurred growing interest in alternatives. Sodium-ion batteries, which use more abundant raw materials, present a promising solution to diversify supply chains and stabilize costs.
Recently, China’s largest battery manufacturer, Contemporary Amperex Technology Co., Limited (CATL), introduced its own sodium-ion system named TENER. CATL plans to commence domestic deliveries soon with international shipments following the next year. This move by CATL and the U.S. production facility both reflect a broader shift toward sodium-ion technologies as vital components in the global transition to reliable, scalable energy storage.