Surging demand drives Company to expand and accelerate manufacturing footprint for zinc-based energy storage in the United States
EDISON, N.J., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ("Eos” or the "Company”), America's leading innovator in the design, sourcing, and manufacturing of zinc-based long duration energy storage (LDES) systems, manufactured in the United States, today announced its search for a new manufacturing facility in addition to the Mon Valley Works expansion under Project AMAZE. This expansion is part of the Company's broader strategy to scale up its operations to meet the rapidly growing demand for renewable energy solutions and to further its commitment to American manufacturing and energy independence.
As the Company finalizes the procurement, construction, and implementation timeline to bring line 2 into full operation, Eos is simultaneously beginning to search for an additional factory location outside the Mon Valley. The new facility, currently known as Factory 2 Works, is expected to be instrumental in supporting Eos' mission to provide safe, cost-effective, and environmentally friendly energy storage. With the growing use of renewable energy sources like wind and solar, coupled with increasing demand from data centers, there is a rising need for reliable, long duration energy storage systems to stabilize the grid and ensure that energy is available when needed. Factory 2 Works would be incremental to the manufacturing capacity expected from the Mon Valley Works under Project AMAZE.
"We're excited to find the next home for America's battery, where we can improve our global competitiveness, continue to create long-term job opportunities and position Eos as a leader in American-made energy storage," said Joe Mastrangelo, Eos Chief Executive Officer. "We're seeing an unprecedented surge in demand for energy storage solutions, with more operators seeking American-made technology, making it critical for us to stay ahead of the demand curve. The simplicity and scalability of our manufacturing operations allow us to quickly replicate production lines and position our facilities closer to customer demand, ultimately reducing logistics costs and improving efficiency."
As part of the strategy, the search for a site outside the Mon Valley Works will focus on regions with strong infrastructure close to customer demand, access to skilled labor, and economic incentives that align with Eos' values of clean energy innovation and American-made manufacturing. Eos expects the new facility to generate hundreds of new jobs, contribute to local economic development and strengthen the nation's energy security and independence.
Eos' zinc-based technology offers a safe, secure, and cost-effective solution to these energy storage challenges. The Company's systems are designed to provide long-duration storage capabilities, essential for grid stability, utility-scale and behind the meter applications, and commercial and industrial use.
This announcement comes on the heels of the Company having secured 616 MWh in new customer orders, an announced partnership with FlexGen to address a preliminary 50 GWh market opportunity and its $68.3 million first loan advance under its $303.5 million Title 17 loan guarantee from the United States Department of Energy, coming 23 days after loan closing.
About Eos Energy Enterprises
Eos Energy Enterprises, Inc. is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. It is safe, scalable, efficient, sustainable, manufactured in the U.S., and the core of our innovative systems that today provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.
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Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue, contribution margins, orders backlog and opportunity pipeline for the fiscal year ended December 31, 2024, our path to profitability and strategic outlook, the tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act of 2022, the delayed draw term loan with Cerberus, milestones thereunder and the anticipated use of proceeds therefrom, the DOE loan and statements regarding the receipt of funds under the DOE loan and the anticipated use of proceeds therefrom, obtaining the requisite approvals from Cerberus and the DOE for future events, our ability to meet the applicable conditions precedent and covenants under the Cerberus and DOE loan documents, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management's beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.
Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to meet the applicable milestones and other condition precedents for funding, comply with covenants and obtain approvals required for future events, in each case under the Cerberus and DOE loan documents; our ability to raise financing in the future, including the discretionary revolving facility from Cerberus; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers' ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.
The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company's most recent filings with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
