Peak Energy, a sodium-ion battery manufacturer, has secured $10 million in a funding round led by Eclipse, with significant participation from strategic partner TDK Ventures.
The financing will help the company develop its sodium-ion battery solutions and lay the groundwork for building out manufacturing in the U.S.
Beginning in 2025, Peak Energy will start deploying its sodium-ion systems while building a domestic, giga-scale battery factory with plans to open in 2026.
Lithium-ion batteries have been an industry default for the past few years, primarily because of their higher energy density. They are used in handheld mobile devices, electric vehicles, and large grid-scale energy storage solutions. However, recent issues regarding lithium battery fires and looming concerns about lithium supply shortages could question lithium’s viability as a long-term energy storage solution, according to the company.
“Sodium-ion is the key to unlocking the potential of renewable energy and will finally enable power providers to fully decarbonize the grid,” said Landon Mossburg, co-founder and CEO of Peak Energy. “The timing could not be better to build a company in this space, and we already have momentum with key customers and partners like Doral Energy. There is a massive opportunity for the United States to emerge as the global leader in sodium-ion production and deployment, and Peak Energy is at the forefront of that effort.”
Projections from BNEF suggest that after 2027, sodium-ion batteries could be more popular for energy storage system demand growth.
Recently, Altris, a company that develops sodium-ion batteries, secured €4.8 million (~$5.2 million) in bridge financing from its current investors and employees. The funding will help the company scale its production and commercialize its technology.
According to Mercom’s 1H And Q2 2023 Funding and M&A Report for Storage & Smart Grid, Venture Capital funding for energy storage companies was up in Q2 2023 with $2.7 billion in 24 deals, a 148% increase compared to $1.1 billion in 19 deals in Q1 2023.