Energy storage technology startup Peak Energy announced that it has raised $108 million in a Series B funding round, with proceeds aimed at expanding its grid-scale platform into the data center market, with the round led by General Motors Ventures.

Founded in 2023, California-based Peak Energy develops passively cooled sodium-ion battery storage systems designed to reduce energy storage costs and improve grid reliability.

The company announced in June a partnership with General Motors to jointly develop next-generation sodium-ion battery cells for the grid-scale energy storage market and leverage GM’s U.S.-based battery cell industrialization expertise. In July, the company announced plans for a 4 GWh factory in Sacramento, California, which is expected to start production in Q1 2027.

Kevin McCabe, President of GM Ventures, said:

“GM Ventures is investing to help Peak Energy continue to scale this innovative technology because we believe it has significant potential in the energy storage market as a safe, cost-effective solution using abundant, domestically sourced materials.”

According to Peak Energy, its energy storage system uses a simplified architecture that eliminates the need for conventional cooling systems, reduces energy waste and requires no planned maintenance. The company said that the design can lower energy costs by up to 20% compared with conventional storage systems, while extending operating life and reducing lifetime ownership costs.

The company said that the system operates with minimal noise, requires no water and is designed to reduce battery fire risks, addressing safety concerns while improving energy efficiency for data center operators.

Peak said that the new capital will be used to scale domestic manufacturing, fulfill more than $1 billion in existing customer orders and expand the use of its sodium-ion battery storage systems in the data center market.

Landon Mossburg, Co-Founder and Chief Executive Officer of Peak Energy, said:

“The investment we announce today will supercharge Peak’s ability to scale and deliver as the world increasingly turns to passively cooled sodium-ion storage to solve our energy needs.”

Additional investors participating in the funding round included Maverick Silicon, Infinite Capital, Eclipse, Xora Innovation and LG Technology Ventures.