The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Zinc battery firm Eos agrees US$315 million facility with Cerberus Capital, retires existing senior loan


US zinc hybrid cathode battery storage manufacturer Eos Energy Enterprises has agreed a financing package with private equity firm Cerberus, comprised of separate loan and revolver facilities totalling US$315 million.

The financing from an affiliate of Cerberus Capital Management comprises a US$210.5 million delayed draw term loan partially dependent on achieving operational milestones, and a US$105 million revolver that Eos can draw upon at Cerberus’ discretion.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Eos said the funding will support its plan to scale operations and execute on its path to profitability, with losses narrowing in recent quarters. It manufactures a proprietary zinc-based battery which it sells to system integrators for projects with up to 12 hours of required discharge duration.

The company will use the proceeds to retire its existing $100 million senior secured term loan on favourable terms, which it said will strengthen its balance sheet. It said it has reached an agreement to extinguish that debt for US$27 million, of which US$20 million has been paid with the remaining US$7 million payable over the next 12 months.

Eos CFO Nathan Kroeker said: “The strategic investment announced today, combined with Eos’ highly efficient manufacturing capacity model, supports our capital needs as we execute on Project AMAZE. We look forward to working with Cerberus and their strong network to continue driving down product costs, improving performance of our storage systems, and developing financing alternatives for our customers.”

AMAZE – American Made Zinc Manufacturing – is the firm’s plan to ramp-up US manufacturing of its battery technology to 3GWh from 800MWh currently, which will mostly be funded by a Department of Energy loan announced in September 2023.

The announcement said Eos has a US$13.3 billion pipeline and $602.7 million orders backlog for its product as of 31 March 2024, though has in the past had to defend these claimed figures. It has primarily been active in the US to-date but was exhibiting last week at the ees Europe energy storage trade show and conference in Munich, Germany.

The Nasdaq-listed company’s share price appears to have temporarily been boosted by today’s announcement with Cerberus, which came just as the markets opened at 8am Eastern Time, although has mostly come back down after the initial jump.

Read Next

July 9, 2024
We hear from industry sources about the reasons for, and implications of, the increasing convergence to the 20-foot, 5MWh+ container as the dominant grid-scale BESS product today.
July 8, 2024
The CEO of LG Energy Solution Vertech, Jaehong Park, speaks to Premium for an exclusive interview.
July 4, 2024
Germany-based commercial & industrial (C&I) BESS provider Tesvolt has won its largest order to-date, for a 65MWh project in Rhineland-Palatinate.
July 2, 2024
Over the past few days, non-lithium long-duration energy storage (LDES) technology providers have made a plethora of announcements.
June 27, 2024
The Inflation Reduction Act (IRA) put battery storage into the mainstream of the US energy industry, but also created supply chain complexities, writes Rauni Jaskari of Wärtsilä Energy Storage and Optimisation (Wärtsilä ES&O).

Most Popular

Email Newsletter