Eos Energy Enterprises – a leading provider of safe, scalable, efficient, and sustainable zinc-based long-duration energy storage systems – announced the closing of a $303.5 million loan guaranteed by the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO). The DOE loan is a key step in advancing Project American Made Zinc Energy (AMAZE) and is expected to fund the expansion of Eos’ manufacturing capacity to 8 GWh by 2027 to meet the growing demand for longer-duration battery energy storage systems.
To meet the demands of the battery energy storage system market, the company (backed by its $589 million order backlog and $14.2 billion commercial pipeline) plans to use the funding to build four fully automated state-of-the-art manufacturing lines. And with one line already in commercial operation and having achieved 10-second battery manufacturing cycle times, these lines are expected to enable the production of Eos’ zinc-based batteries designed to offer a reliable, cost-effective, and safe alternative to incumbent technologies and support the transition to a more sustainable energy grid.
Project AMAZE was created to position Eos at the forefront of the clean energy transition, with the company’s goal of achieving 8 GWh of capacity by 2027, driven by increasing customer demand. And the final loan guarantee amount of $303.5 million is lower than the amount in the company’s August 2023 conditional commitment, driven by Project AMAZE operational costs coming in lower than forecast and the addition of the strategic investment by Cerberus Capital Management announced in June 2024.
With the DOE’s backing and the Delayed Draw Term Loan from Cerberus, Eos believes it has the funding necessary to drive long-term, profitable growth. Together, these partnerships are driving forward the Company’s mission to accelerate the clean energy transition and address critical needs vital to the long-term energy security of the US.
Eos’ manufacturing expansion under Project AMAZE is prepared to meet growing customer demand while generating significant economic benefits in the Mon Valley, supporting long-term sustainable growth in the energy storage sector. From just two employees in 2019, the company has transformed an empty building in the region into a world-class clean energy manufacturing hub, with an over 250-person full-time employee workforce in Turtle Creek. The project is expected to maintain and create up to 1,000 temporary and permanent jobs, including numerous apprenticeship opportunities through Eos’ Clean Energy Careers Program, in partnership with local high schools, trade schools, and workforce development programs.
KEY QUOTES:
“Five years ago, we made the strategic decision to bring our manufacturing operations back to the U.S. from China – a move that has been transformative to our business and positioned Eos at the forefront of the American manufacturing renaissance. Since then, we’ve made significant advancements in our battery technology, retooled our manufacturing facilities for greater efficiency, and established a U.S.- based supply chain with over 90% domestic content, all of which has brought us to this milestone today with the DOE. The DOE loan provides capital to scale our operations to meet the surging demand for reliable, long-duration energy storage solutions, all while supporting American manufacturing.”
– Eos Chief Executive Officer Joe Mastrangelo
“We are thrilled to reach this important milestone, which we view as a strong endorsement of Eos’ proprietary Z3 technology and our ability to manufacture in the U.S. Closing on the loan marks a key achievement in executing our multi-phase capital strategy. The DOE loan guarantee, alongside our strategic investment from Cerberus, is expected to provide the capital required to build a profitable manufacturing business and supports our progress as we execute the Project AMAZE roadmap.”
– Eos Chief Financial Officer Nathan Kroeker
