US Startups Turn to Sodium-Ion Tech to Break China's Battery Monopoly

American energy startups are racing to deploy sodium-ion battery technology in a bid to sever the U.S. power grid from Chinese-dominated lithium supply chains.

By replacing scarce critical minerals with abundant table salt compounds, domestic pioneers aim to secure stationary energy storage while undercutting Beijing’s overwhelming control of global battery manufacturing.

A Strategic Pivot from Lithium

China currently controls the vast majority of global lithium-ion processing and material supply lines, leaving Western energy infrastructure vulnerable to foreign supply disruptions.

Sodium-ion alternatives eliminate the need for hard-to-access minerals, offering lower manufacturing costs, enhanced thermal safety, and passive air-cooling capabilities for stationary storage, according to The Wall Street Journal.

Although sodium-based cells account for under one percent of global output, Morgan Stanley estimates that sodium technology will power over one-third of all global batteries within a decade.

Scaling Domestic Gigafactories

Former Tesla executives are spearheading the commercial transition toward sodium systems to supply power grids and expanding data centers.

Peak Energy, led by former Tesla engineer Landon Mossburg, has secured over $1.1 billion in customer deals with energy firms including Jupiter Power, Energy Vault, and RWE Americas.

The startup plans to open a 183,000-square-foot facility in Sacramento by early 2027, scaling production to 4 gigawatt-hours annually to supply grid systems without liquid cooling infrastructure.

General Motors has also made a strategic investment in Peak Energy, designing customized sodium-ion architectures to diversify beyond conventional lithium chemistry.

Safer Chemistry for Stationary Grids

Unlike conventional lithium-ion units, which carry risks of thermal runaway and fires, sodium-based designs significantly reduce operational hazard and cooling overhead.

San Leandro-based Inlyte Energy utilizes iron powder, steel, aluminum oxide, and table salt to manufacture non-flammable tube-shaped battery cells.

Inlyte is preparing its initial delivery to Southern Company’s Alabama testing facility, offering high-density configurations that eliminate cascading thermal failures across battery arrays.

While lithium-ion retains an energy density advantage in weight-sensitive electric vehicles, sodium-ion is rapidly emerging as the optimal solution for stationary backup power and peaker plants.

Race Against Chinese Scale

Beijing is moving swiftly to entrench its lead, with Chinese battery giants BYD and CATL expanding industrial-scale sodium production.

Industry leaders warn that without sustained domestic scaling, the U.S. risks forfeiting another foundational energy innovation to Chinese manufacturing dominance.

"We are not getting out-innovated," says Chatter. "But it will be a shame if we get out-scaled again."