Sodium-Ion Surges Into the US Battery Race

New multi-GWh supply agreements suggest growing interest in sodium-ion batteries, though lithium-ion remains dominant in US grid storage

15 Feb 2026

Sodium-ion batteries are beginning to secure large commercial contracts in the United States, signalling rising confidence in an alternative storage technology even as lithium-ion continues to dominate the market.

In early February, Energy Vault and Peak Energy announced a 1.5 gigawatt-hour supply agreement for US-manufactured sodium-ion battery systems. The companies plan to deploy the systems in infrastructure-scale projects, including energy storage for electricity-intensive facilities such as artificial intelligence data centres.

The deal adds to Peak Energy’s earlier commercial agreements. The company has already signed a multi-year contract to supply up to 4.75 gigawatt-hours of sodium-ion batteries to developer Jupiter Power between 2027 and 2030.

Together, the agreements rank among the largest sodium-ion commitments yet announced in the US. They reflect growing interest among developers in diversifying battery technologies, particularly for grid-scale storage where cost stability and supply security are becoming more important.

Sodium-ion batteries rely on sodium, an abundant material, rather than lithium. Many designs also reduce or avoid the use of nickel, a metal associated with price swings and concentrated global production. Supporters argue that these features could make the technology attractive for domestic manufacturing and supply-chain resilience, priorities reinforced by US clean energy legislation.

Despite this momentum, lithium-ion batteries remain the backbone of the country’s storage sector. The chemistry benefits from higher energy density, established global supply chains and a mature manufacturing ecosystem that has expanded rapidly over the past decade.

By contrast, sodium-ion technology is still at an earlier stage of deployment. Developers and utilities continue to test long-term performance and cost competitiveness as the first larger projects move towards construction.

Industry participants increasingly frame sodium-ion not as a direct replacement for lithium-ion but as a complementary option. In stationary grid storage, where weight and compactness are less important, the chemistry could provide an additional pathway for meeting growing electricity demand.

As power systems expand to support electrification and data centre growth, the US storage market may gradually widen its technological mix rather than rely on a single battery chemistry.