American battery startup Peak Energy and energy developer Jupiter Power have teamed up to deploy grid-scale sodium-ion batteries. It’s a big step forward for the nascent—and in some ways, promising—competitor to conventional lithium-ion batteries. But sodium-ion tech still has hurdles to overcome.
Experts say sodium-ion batteries have several advantages over traditional lithium-ion batteries. They experience far less degradation over time, demonstrate superior performance even in extreme cold and can cost comparatively less when scaled.
But there are trade offs. The cells have lower energy density than lithium-ion ones, which makes them more suitable for energy storage systems or less demanding applications like low-cost EVs. And the technology just isn’t as mature as lithium iron phosphate (LFP), the low-cost lithium-ion chemistry that’s taking off globally for both stationary storage and EV applications.
Peak Energy’s sodium-ion ESS battery deployed in Colorado.
Photo by: Peak Energy
Peak Energy claims its sodium-ion energy storage battery can operate without active cooling, unlike lithium-ion batteries, which require complex cooling systems and fire-suppressant additives for safety and performance.
Under its agreement with Texas-based energy provider Jupiter Power, Peak Energy will provide 4.75 gigawatt-hours of sodium-ion battery energy storage systems (ESS) for deployment between 2027 and 2030.
The company claims its grid-scale sodium-ion battery system can hold 3.1 megawatts hours of energy and operates at temperatures ranging from -40 to 131 degrees Fahrenheit (-40 to +55 degrees Celsius). That’s enough energy to fully charge more than 40 EVs with an average pack size of about 75 kilowatt hours. The ESS has no moving parts, no fans and no cooling system pipes running between the cells, according to the company.
LGES Vertech’s battery energy storage system.
Photo by: LGES
It has already deployed what it calls the world’s first grid-scale passively cooled sodium-ion battery at a site in Watkins, Colorado. As per the company, this battery can save more than $100 million in project costs over its lifetime.
Grid batteries, which look like large shipping containers, are becoming increasingly important for a few reasons. AI data centers, EVs and electric heating are expected to significantly boost demand for power in the coming years and decades. Renewable power generation is growing too, but it’s intermittent. We need to store energy for times when the sun isn’t shining or when the wind isn’t blowing.
These stationary battery banks are different from EV batteries. They operate at controlled temperatures and are designed to repeat the same charge-discharge cycles, typically for over 20 years, which is a less demanding use case than that of EVs. EV batteries are exposed to different road conditions and varied climates and are subject to a wide range of charging cycles and mixed use cases.
Historically, grid-scale batteries in the U.S. have used nickel-based chemistries. But more recently, the market is pivoting to LFP cells. Sodium-ion’s entry to the ESS market could herald a new chapter if successfully deployed. But some experts remain skeptical.
“LFP batteries are currently the lowest-cost and most widely available option for energy storage,” Evelina Stoikou, head of battery technology and supply chain research at the research firm BloombergNEF, told me in an email.
As EV sales slow down in the U.S., more battery companies are pivoting to produce LFP batteries for ESS, including LG Energy Solution and Stellantis-backed NextStar Energy.
Plus, Peak Energy is not the only U.S. company that has tried to scale sodium-ion batteries in the country. California-based Natron Energy wanted to build a $1.4 billion sodium-ion battery gigafactory in North Carolina, but ceased operations this year due to funding issues, the Raleigh News and Observer reported. Another sodium-ion startup, Bedrock Materials, cited the dropping cost of lithium as a reason for why it closed up shop this year.
“Sodium-ion energy storage systems have the potential to compete with LFP in terms of energy density and performance, but they are a less mature technology and may not yet benefit from the same economies of scale as LFP,” Stoikou added.
Photo by: CATL
It’s unclear where Peak Energy has sourced its sodium-ion batteries from or where they are manufactured. The company did not respond to InsideEVs’ request for comment by the time of publication.
Since their lower energy density could pose an issue for EVs, Stoikou expects sodium-ion batteries to play a larger role in ESS applications. But the road to wider deployment will be long. BNEF expects sodium-ion batteries to account for 5% of ESS capacity additions by 2035.
That’s not necessarily the case outside the U.S., however. China’s CATL, the world’s largest battery manufacturer, revealed production-ready sodium-ion batteries for light-duty EVs and commercial trucks at this year’s Shanghai Auto Show. And electric scooters powered by sodium-ion batteries are already on sale in China, costing as low as $400.
Over in the U.S., whether sodium-ion battery tech remains a niche experiment or scales into a meaningful part of the country’s energy ecosystem remains to be seen.
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