Peak Energy Plans 4-GWh Sodium-Ion Battery Factory in Sacramento

Peak Energy has selected Sacramento, California, for a new sodium-ion battery factory designed to manufacture as much as 4 GWh of grid-scale energy storage systems annually.

The company expects production and customer shipments to begin in the first quarter of 2027. The project represents an investment of up to $71 million and is expected to create 239 jobs in the Sacramento area over approximately 18 months.

Announced on July 8, 2026, the development could become an important test of whether sodium-ion technology can be manufactured competitively at scale in the United States.

Key facts about the Sacramento project

The planned manufacturing site will occupy a 183,000-square-foot building in Sacramento’s Metro Air Park industrial area.

Peak Energy says the facility will have:

• Annual manufacturing capacity of up to 4 GWh

• Production scheduled to start in the first quarter of 2027

• More than 6 GWh of existing customer commitments

• Capital investment of up to $71 million

• 239 new jobs in the Sacramento region

• Average annual wages exceeding $90,000

The company also expects its broader expansion in Sacramento and Burlingame to produce 348 net new California jobs by 2030.

Why Peak Energy chose Sacramento

Peak Energy selected Sacramento after evaluating locations across the United States.

The company cited the region’s industrial workforce, access to California’s expanding energy storage market and cooperation among local utilities, workforce organizations and economic development agencies.

Metro Air Park is located close to Sacramento International Airport and provides access to several major transportation corridors, including Interstate 5, Interstate 80 and Highway 99. These connections could support the movement of components and completed storage systems.

The project is being supported by a California Competes tax credit of up to $10.5 million. State documentation lists Peak Energy Technologies as planning $71 million in investment and 348 net new positions across Sacramento and Burlingame.

A factory designed for grid-scale storage

Peak Energy is developing sodium-ion batteries for stationary applications rather than electric vehicles or portable electronics.

That distinction matters because grid storage systems do not face the same restrictions on weight and physical size as vehicle batteries. Sodium-ion cells generally have lower energy density than leading lithium-ion cells, but their material composition and operating characteristics may make them suitable for large, fixed installations.

The Sacramento sodium-ion battery factory will produce complete energy storage systems intended for utilities, renewable-energy developers, data centers and other large electricity users.

Peak describes the product as a drop-in alternative to conventional battery energy storage systems, meaning it is intended to be integrated into projects without requiring an entirely new grid-storage architecture.

Passive cooling is central to Peak Energy’s strategy

A defining feature of Peak Energy’s system is its passive thermal design.

Conventional grid batteries commonly rely on air-conditioning equipment, pumps, fans and other active components to keep battery cells within their required temperature range. Those systems consume electricity and introduce additional maintenance points.

Peak says its design can eliminate most moving components and reduce auxiliary power consumption by as much as 97%. The company claims its storage system can operate for more than 20 years without scheduled maintenance and provide 99% guaranteed uptime. These figures are company projections and will need to be demonstrated across long-term commercial deployments.

Peak also estimates that avoiding battery refrigeration could save California electricity customers an average of $100 million annually. This is another company estimate rather than an independently verified statewide saving. sodium-ion battery factory

More than 6 GWh of customer commitments

Peak Energy reports that it already has more than 6 GWh of customer commitments associated with its storage technology.

Its announced customers and development partners include Jupiter Power, Energy Vault and RWE Americas.

One of the largest agreements is with Jupiter Power. Under that arrangement, Peak is expected to deliver approximately 720 MWh in 2027. Jupiter Power also holds an option covering a further 4 GWh of capacity between 2028 and 2030.

Peak has said the potential value of the full Jupiter agreement could exceed $500 million.

These commitments provide the planned factory with a prospective order pipeline, although options and capacity reservations should not be treated as completed deliveries or guaranteed revenue.

General Motors partnership supports sodium-ion cell development

Peak Energy is also working with General Motors on the next generation of its sodium-ion technology.

The companies announced a strategic partnership in June 2026 under which GM’s battery-development and industrialization capabilities will be combined with Peak’s grid-scale storage platform. GM Ventures has also invested in Peak Energy.

The partnership is intended to support the development and scaling of domestically produced sodium-ion cells for stationary storage.

For GM, the collaboration represents an expansion beyond vehicle batteries into storage systems serving utilities, data centers and other major electricity consumers. For Peak Energy, it provides access to the manufacturing expertise of one of the largest automotive groups in the United States.

Why sodium-ion storage is attracting investment

Lithium-ion technology currently dominates the battery storage market. However, developers are examining sodium-ion chemistry as a possible alternative for applications where size and weight are less important than cost, safety, material availability and operating life.

Sodium is widely available and does not require lithium as its charge-carrying element. Depending on the specific cell chemistry, sodium-ion batteries may also reduce exposure to some of the critical-material supply chains used by conventional lithium-ion batteries.

The technology nevertheless faces commercial challenges. Sodium-ion manufacturing capacity remains limited, and its long-term cost advantage will depend on production scale, supply-chain development, cell performance and continued technical improvements.

Research has found that sodium-ion batteries could become cost-competitive with lower-cost lithium-ion chemistries under several development scenarios, particularly if manufacturers improve energy density and expand production. Those outcomes are projections rather than a certainty.

Sacramento factory could strengthen US battery manufacturing

The planned Sacramento facility is being presented by Peak Energy as the first US factory dedicated specifically to grid-scale sodium-ion energy storage systems.

That description is based on the company’s announcement. The plant has not yet entered production, and its schedule remains subject to equipment installation, supply-chain readiness, permitting and successful manufacturing ramp-up.

If Peak reaches its stated 4-GWh annual capacity, the facility would represent a significant expansion of domestic manufacturing for an energy-storage chemistry that remains at an early stage of commercialization.

It could also help diversify the US grid-storage supply chain at a time when electricity demand is increasing because of data-center construction, electrification and the integration of variable renewable generation.

What happens next

Peak Energy plans to prepare and equip the Metro Air Park property ahead of production in early 2027.

The most important milestones to watch will include:

• Completion of the manufacturing line

• Qualification of production systems

• Availability of sodium-ion cells at commercial scale

• Initial deliveries to contracted customers

• Performance data from operating projects

• Progress toward the factory’s 4-GWh annual capacity

The Sacramento announcement gives Peak Energy a defined manufacturing location, public financial support and an initial customer pipeline. The next phase will determine whether the company can translate those advantages into reliable, high-volume sodium-ion battery production.

Frequently asked questions

Where will Peak Energy build its sodium-ion battery factory?

The factory will be located in a 183,000-square-foot building at Metro Air Park in Sacramento, California.

How much energy storage will the factory produce?

Peak Energy says the facility will be capable of producing up to 4 GWh of grid-scale battery storage systems per year.

 

When will production begin?

Production and initial shipments are scheduled to begin in the first quarter of 2027.

How much will Peak Energy invest?

The company plans to invest up to $71 million in the California expansion.

How many jobs will the project create?

Peak Energy expects to create 239 jobs in the Sacramento region. Its broader Sacramento and Burlingame expansion is associated with 348 net new California jobs by 2030.

What are sodium-ion batteries used for?

Peak Energy’s sodium-ion batteries are designed for stationary storage applications, including electric grids, renewable-energy projects, utilities and data centers.

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