Eos Energy Enterprises, the US-headquartered manufacturer of stackable zinc battery storage system technology, added 65MWh of production capacity in the first quarter of this year.
The company reported its first quarter 2022 financial results earlier this week, noting that an initial 65MWh of a planned production capacity expansion of 550MWh was completed during the three month period.
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It also saw quarterly revenues jump year-on-year from US$164,000 in Q1 2021 to US$3.298 million. This included the first delivery of equipment to an 80MWh customer project in the US for developer Pine Gate Renewables.
That three-month revenue figure compares very favourably with the US$4.6 million revenues it earned for the full-year in 2021, and the company said its orders in the year to date for 2022 stand at US$67 million, resulting in it holding an order backlog worth US$212 million.
As a company seeking to commercialise its technology, which essentially involves plating and replating zinc inside its Znyth brand batteries to create 3-hour duration units which can be stacked to 12 hours duration or more in a complete system called an Energy Block, Eos has been transparent in informing investors of an expectation that it won’t reach profitability until mid-2023.
However, company CEO Joe Mastrangelo described Q1 2022 as being marked by milestones being achieved in its product and business development almost every single day.
One metric it highlighted in its financial results disclosure on 10 May was a 14% reduction of its bill of material costs since the end of last year in its Energy Block energy storage system (ESS) product while it has been able to reduce the product’s cost by 7.4% in that time.
It claimed a US$6 billion-plus pipeline of potential opportunities have been identified, while it has shipped its 100th Energy Block unit to date from its facility in Turtle Creek, Pittsburgh. The additional 550MWh expansion of the Turtle Creek plant will bring its annual production capacity up to 800MWh.
As reported by Energy-Storage.news, the company has secured or is negotiating supply deals with a number of customers mainly in the US such as a 240MWh to 500MWh master supply deal with Bridgelink Commodities worth up to US$150 million and a 300MWh letter of intent with an undisclosed solar developer in the Northeast US signed in late April.
Eos Energy Enterprises also recently secured a US$200 million financing deal with an affiliate of investment group Yorkville Advisors, which it said will give it access to flexible capital as the company grows.
Eos’ cash balance was US$56.6 million at the end of Q1 2022. Its cost of commercialisation activities remains fairly high, with about the same amount expended during the quarter and a net loss of US$45.791 million recorded.
“The timing of our capacity expansion fits nicely with our orders backlog growth and commercial opportunity pipeline acceleration,” CEO Mastrangelo said.
“We are building a company ready to deliver safe, scalable, flexible, and affordable energy storage. Our manufacturing capacity expansion is on plan, we are seeing improved first-pass production yields, and we are proud to be working towards a cleaner, brighter energy future.”