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Grid storage startup Peak Energy is raising an $80 million Series B at a $475 million pre-money valuation, two sources tell Axios Pro. 

Why it matters: The company is poised for rapid growth with a new battery factory planned in California.

The latest: Peak Energy announced Wednesday afternoon that it's selected Sacramento for a 183,000-square-foot, $71 million facility that will be able to make 4 GWh of battery systems annually and create 239 jobs.

The company says the factory will be the first in the U.S. dedicated to using sodium-ion batteries to build grid storage systems. 

State of play: Sodium-ion batteries are a lower-cost alternative to lithium-ion batteries that use widely available materials like sodium instead of critical minerals.

China is investing heavily in the sodium-ion battery market, and the tech is emerging to power low-cost EVs and as grid storage. 

Follow the money: The Series B could be a pre-IPO round, or the company could raise again before considering the public markets, says one source. 

The company declined to comment on the Series B round.

The first phase of the Sacramento facility has been funded with equity, says CEO Landon Mossburg, but the company could potentially raise more funding to expand the factory.

Mossburg says Peak Energy is "definitely thinking about public markets" at some point.  

Zoom in: Three-year-old Peak Energy is scaling quickly. "I think we have a real shot at getting over $100 million in revenue next year," says Mossburg.

That's a ramp-up from an expected $10 million in revenue off of its pilot production line that's currently producing systems in Burlingame, Calif. 

Peak Energy has $1.1 billion in deposit-backed contracts that are scheduled for delivery through 2030, says Mossburg.

Catch up quick: Peak Energy previously raised a $55 million Series A led by Xora Innovation and including Eclipse and TDK Ventures.

General Motors last month announced its venture arm was investing in Peak Energy, part of the automaker's effort to expand its business turning EV batteries into energy storage assets.

How it works: Peak Energy buys sodium-ion battery cells and packages them into passive-cooled systems that don't require high-energy chillers.

Data center developers, independent power producers and utilities are buying Peak's grid storage units to help maintain grid reliability and flexibility, as well as enabling backup power and behind-the-meter projects. 

Mossburg says Peak Energy is the first to design grid storage systems from the ground up, using first principles, instead of repackaging batteries from other sectors. 

Zoom out: The market for grid storage systems is seeing major growth as demand for electricity surges for data centers, manufacturing and electrification. 

The bottom line: Peak Energy is tapping into the bet that sodium-ion batteries are at the cusp of going mainstream.

Scoop: Peak Energy raising $80M as it opens big battery factory

The factory will be the first of its kind in the U.S.

Illustration of stationary battery storage units surrounded by abstract shapes. 

Grid storage startup Peak Energy is raising an $80 million Series B at a $475 million pre-money valuation, two sources tell Axios Pro. Why it matters: The company is poised for rapid growth with a new battery factory planned in California.

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Scoop: Peak Energy raising $80M as it opens big battery factory

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