Peak Energy announced a partnership with General Motors (GM) to manufacture sodium-ion batteries for energy storage systems. This collaboration is significant for Peak, a startup founded three years ago, and provides GM an opportunity to explore battery technology that is predominantly used in China.
Cameron Dales, Peak’s co-founder and chief commercial officer, explained that sodium-ion batteries use sodium, an abundant element found in table salt, as opposed to lithium, which is used in traditional lithium-ion batteries. While sodium-ion batteries have lower energy density than lithium-ion batteries, they present advantages such as reduced fire risk.
Currently, sodium-ion batteries are more expensive than lithium-ion due to the latter's established manufacturing processes. However, companies like Peak are optimistic that costs will decrease as sodium-ion technology becomes more mainstream.
CATL, a leading battery manufacturer in China, has also invested in sodium-ion technology, citing its cost and safety benefits. In the U.S., Peak is one of about a dozen companies developing this technology. The partnership with GM will allow the automaker to develop sodium-ion batteries in its Michigan lab, which will be integrated into Peak's energy storage systems.
Kurt Kelty, GM’s vice president for battery and sustainability, stated that GM believes sodium-ion technology will play a crucial role in grid-scale energy storage systems. As automakers expand into energy storage, they seek new markets due to excess battery manufacturing capacity.
According to Benchmark Mineral Intelligence, sodium-ion battery market share in North America is currently negligible and is projected to remain below 1% by 2030. In contrast, China's market share is expected to rise from 1% to 3.4% by 2030. Analysts suggest that sodium-ion batteries will complement lithium-ion technology rather than replace it, indicating a diverse future for battery technologies.