ESS Tech accelerates sodium-ion battery production following ‘surging interest’
Energy storage provider ESS Tech Inc. is accelerating the development and production of its non-lithium battery systems, following a surge of early customer interest.
The company says that since signing its letter of intent with battery manufacturer Alsym Energy in late April, the company has seen “strong early customer engagement” across the U.S. The spiking interest, specifically in the firm’s planned U.S.-made sodium-ion battery energy storage system (BESS), has led officials to align company resources to support accelerated production.
“The demand we’re seeing for sodium-ion is unlike anything in our company’s history,” says Drew Buckley, CEO of ESS Tech. “Energy demand is changing faster than the market can respond, and it’s clear the solutions of the past won’t fill the gap. We’re moving decisively to meet that need, accelerating our path towards near-term revenue while establishing the foundation to deliver at the scale and speed the market needs.”
Buckley and the Wilsonville, Oregon-based company say that its sodium-ion batteries will find outsized use in data centers, utility markets, and other critical infrastructure applications. ESS Tech has already developed early-stage opportunities approach $1 billion for those batteries, and the company is accelerating its development of the BESS platform in order to meet growing immediate demand.
A need for safe, domestic storage
Electricity hyperscalers, data center developers, and other customers across the energy sector are desperate for storage that is safe, easy to deploy, and perhaps most of all, not at risk of supply chain snafus.
Modern energy storage systems need to be able to avoid fire and lithium-ion insurance exposure, the company says, while also meeting aggressive energy delivery timelines. Most of all, these customers need to eliminate foreign entity of concern (FEOC) issues, and sodium-ion is “uniquely suited to fill that gap,” thanks to all domestically available materials.
“This transition enables ESS to pursue attractive market opportunities while maintaining our commitment to long-term innovation,” adds Buckley. ” We believe ESS is well-positioned to create value for customers and shareholders by focusing our organization on high-growth markets with a differentiated technology, leveraging our proven execution capabilities, and continuing to deliver American-made energy storage solutions.”
Alongside its sodium-ion BESS products, ESS Tech will also continue development of its iron flow battery technology for long duration applications. The company plans to announce sodium-ion container, rack, and other hardware solutions, along with digital software offerings.
