Burlingame, California-based battery designer Peak Energy has chosen state capital Sacramento as the site for America’s first sodium-ion grid storage manufacturing plant.

Representing a corporate investment of about $71 million, the 183,000 square foot plant will produce up to 4 GWh of energy storage per year, officials say. The announcement marks a major milestone for the Californian energy and manufacturing sectors, as the factory will create 239 jobs in the Golden State over the next 18 months.

“America needs energy storage that is lower cost, more affordable, more reliable and purpose-built to meet the demand coming onto the grid,” says 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.”

The company already has more than 6 GWh of commitments already in place from customers around the U.S., officials say. The firm’s sodium-ion technology aims to reduce energy costs for those customers by up to 20%, and will be able to maintain a consistent uptime of 99% throughout the battery’s lifespan.

Advancing America’s energy economy

Located in northern Sacramento’s Metro Air Park, new facility comes at a crucial time in the industry, as AI data centers continue to expand and take up grid space around the country. Time is of the essence, Peak Energy representatives say, and the company chose Sacramento thanks to the region’s combination of manufacturing talent, strong statewide support, and close proximity to the heart of the energy storage market.

“The future of energy is being built in California,” says Dee Dee Myers, senior advisor to Gov. 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.”

The new site is expected to create 348 net new jobs across both Sacramento and Burlingame, the company says, and generate economic activity throughout the northern California region. The construction project is also supported by a $10.5 million CalCompetes tax credit, which Peak received in May 2026.

Barry Broome, president and CEO of the Greater Sacramento Economic Council, says the decision to build in Sacramento is “exactly the kind of advanced manufacturing investment that reflects the strengths of our region.”

“Sacramento has become a destination for innovative companies looking to grow, manufacture and invest for the long term,” he says. “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.”

Tags: batteries, BESS, California, data centers, ESS, Peak Energy, sodium-ion batteries, storage