Peak Energy Launches America’s First Sodium-Ion Battery Factory

Introduction

July 10, 2026 — Peak Energy has selected Sacramento, California, to build America’s first dedicated sodium-ion battery factory. The U.S. grid storage specialist announced today that it will convert a 183,000-square-foot facility in the city’s Metro Air Park into a major manufacturing hub for grid-scale sodium-ion energy storage systems.

The move represents a significant milestone for domestic clean energy manufacturing. With more than 6 GWh of customer commitments already secured, the plant is expected to produce up to 4 GWh of battery systems per year, enough capacity to support nearly four million homes. The project comes at a critical time as surging AI data center demand and renewable energy growth drive unprecedented need for affordable, reliable grid storage.

This development positions California as a leader in next-generation battery technology while delivering substantial economic benefits to the Sacramento region.

Peak Energy’s Sacramento Sodium-Ion Factory – Key Highlights

The new sodium-ion battery factory will begin production and shipments in Q1 2027. It marks Peak Energy’s largest investment to date and the first U.S. facility purpose-built for grid-scale sodium-ion systems.

The factory will focus on Peak’s passively cooled battery energy storage systems, designed as drop-in replacements for existing lithium-ion installations. By eliminating active cooling requirements, the technology promises to dramatically reduce both upfront and operating costs for utilities and developers.

Why Sacramento? Location Advantages and Economic Impact

Sacramento beat out competitors in a nationwide site selection process thanks to its skilled manufacturing workforce, proximity to California’s massive energy storage market, and strong support from state and local authorities.

$71 Million Investment and 239 New Jobs

The project brings up to $71 million in capital investment and will create 239 new local jobs over the next 18 months. These positions are expected to offer an average annual wage exceeding $90,000, well above regional averages.

Expected Economic Ripple Effect

Beyond direct employment, the Sacramento battery factory will generate additional opportunities for local suppliers, contractors, logistics companies, and service businesses. Combined with Peak’s existing operations in Burlingame, the company projects 348 net new jobs across California by 2030, along with expanded tax revenue and long-term community investment.

CalCompetes Tax Credit Support

The project received a $10.5 million CalCompetes tax credit in May 2026, underscoring the state government’s commitment to advanced manufacturing and clean energy jobs in California.

Next-Gen Sodium-Ion Battery Technology Advantages

Peak Energy’s sodium-ion systems represent a major advancement over traditional lithium-ion solutions for stationary storage applications. Key advantages include:

• 20% lower cost than lithium-ion — making large-scale deployments more economically viable
• 99% uptime with passive cooling — dramatically reducing operational complexity and risk
• 20+ years maintenance-free operation — engineered for long-duration grid service without scheduled downtime
• Major savings for California ratepayers — eliminating refrigeration costs could save ratepayers an average of $100 million annually in the state alone

These features make sodium-ion technology particularly well-suited for the demanding requirements of modern power grids.

Growing Demand and Strategic Partnerships

Explosive growth in AI and data centers has accelerated demand for grid-scale energy storage factory solutions that can deliver clean, reliable power at competitive prices. Peak Energy’s Sacramento facility is positioned to help meet this surge while strengthening U.S. energy independence.

The company has already secured agreements with major players including Jupiter Power, Energy Vault, and RWE Americas. In a significant validation of its technology, Peak recently announced a strategic partnership with General Motors, including investment from GM Ventures, to integrate GM’s next-generation sodium-ion cells with Peak’s proprietary platform.

These partnerships highlight growing industry confidence in sodium-ion battery manufacturing as a scalable, cost-effective alternative for utility-scale applications.

What This Means for America’s Energy Future

The Sacramento sodium-ion battery factory strengthens American leadership in clean energy innovation and manufacturing. By building critical supply chain capacity domestically, Peak Energy is reducing reliance on imported technologies and supporting national energy security goals.

California continues to demonstrate its dual strength as both an innovation hub and a manufacturing powerhouse. This project reinforces the state’s commitment to creating high-quality jobs while advancing its ambitious climate and energy transition targets.

For the broader U.S. energy sector, the facility signals that sodium-ion technology is ready for prime time in grid-scale deployments, potentially accelerating the transition to a cleaner, more affordable, and more resilient power system.

Conclusion

Peak Energy’s decision to establish America’s first dedicated sodium-ion battery factory in Sacramento marks an important step forward for U.S. energy storage manufacturing. The project delivers immediate economic benefits through jobs and investment while addressing long-term needs for lower-cost, reliable grid storage.

As the facility prepares for 2027 production startup, it stands as a powerful example of how targeted policy support and private innovation can combine to build the energy infrastructure of the future right here in California.

“The future of energy is being built in California,” said Dee Dee Myers, Senior Advisor to Governor Newsom and 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. 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.”

“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”

“Peak Energy’s decision to select Sacramento is exactly the kind of advanced manufacturing investment that reflects the strengths of our region,” said Barry Broome, President and CEO of the Greater Sacramento Economic Council. “Sacramento has become a destination for innovative companies looking to grow, manufacture, and invest for the long term. This project will create opportunities for our local businesses, working families, and communities while ensuring the benefits of California’s energy transformation are felt right here in Sacramento for generations to come.”

Source: Peak Energy

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