Eos Energy Closes $303.5 Million Loan Guaranteed by the U.S. Department of Energy to Support Project AMAZE and American Made Manufacturing Expansion
Eos Energy Enterprises (NASDAQ: EOSE) has secured a $303.5 million loan guaranteed by the U.S. Department of Energy's Loan Programs Office, marking the first Title 17 battery loan under the current administration. The funding will support Project AMAZE, aimed at expanding manufacturing capacity to 8 GWh by 2027. The company plans to build four automated manufacturing lines to meet growing demand, backed by a $589 million order backlog and $14.2 billion commercial pipeline. The loan, structured in four tranches, will cover 80% of eligible costs and matures in June 2034. Project AMAZE is expected to create up to 1,000 temporary and permanent jobs in the Mon Valley region.
Eos Energy Enterprises (NASDAQ: EOSE) ha ottenuto un prestito garantito dal valore di 303,5 milioni di dollari dall'Ufficio dei programmi di prestito del Dipartimento dell'Energia degli Stati Uniti, segnando il primo prestito per batterie ai sensi del Titolo 17 sotto l'attuale amministrazione. Il finanziamento supporterà il Progetto AMAZE, volto ad espandere la capacità produttiva a 8 GWh entro il 2027. L'azienda prevede di costruire quattro linee di produzione automatizzate per soddisfare la crescente domanda, supportata da un portafoglio ordini di 589 milioni di dollari e da un pipeline commerciale di 14,2 miliardi di dollari. Il prestito, strutturato in quattro tranche, coprirà l'80% dei costi ammissibili e scadrà a giugno 2034. Si prevede che il Progetto AMAZE creerà fino a 1.000 posti di lavoro temporanei e permanenti nella regione della Mon Valley.
Eos Energy Enterprises (NASDAQ: EOSE) ha conseguido un préstamo garantizado de 303,5 millones de dólares por parte de la Oficina de Programas de Préstamos del Departamento de Energía de EE. UU., marcando el primer préstamo para baterías bajo el Título 17 en la actual administración. La financiación apoyará el Proyecto AMAZE, que tiene como objetivo expandir la capacidad de producción a 8 GWh para 2027. La empresa planea construir cuatro líneas de producción automatizadas para satisfacer la creciente demanda, respaldada por una cartera de pedidos de 589 millones de dólares y un pipeline comercial de 14,2 mil millones de dólares. El préstamo, estructurado en cuatro tramos, cubrirá el 80% de los costos elegibles y vencerá en junio de 2034. Se espera que el Proyecto AMAZE genere hasta 1.000 empleos temporales y permanentes en la región de Mon Valley.
Eos Energy Enterprises (NASDAQ: EOSE)는 미국 에너지부의 대출 프로그램 사무소가 보증하는 3억 3천5백만 달러의 대출을 확보했습니다. 이는 현 정부 하의 첫 번째 타이틀 17 배터리 대출입니다. 이 자금은 2027년까지 8 GWh의 생산 능력 확장을 목표로 하는 AMAZE 프로젝트를 지원할 것입니다. 회사는 증가하는 수요를 충족하기 위해 4개의 자동화된 생산 라인을 구축할 계획이며, 5억 8,900만 달러의 주문 잔고와 1,420억 달러의 상업 파이프라인으로 지원받고 있습니다. 이 대출은 4개의 트런치로 구조화되며, 적 eligible costs의 80%를 커버하고 2034년 6월에 만료됩니다. AMAZE 프로젝트는 Mon Valley 지역에서 최대 1,000개의 임시 및 영구 일자리를 창출할 것으로 예상됩니다.
Eos Energy Enterprises (NASDAQ: EOSE) a obtenu un prêt garanti de 303,5 millions de dollars par le Bureau des programmes de prêts du Département de l'énergie des États-Unis, marquant le premier prêt sur batterie du Titre 17 sous l'administration actuelle. Le financement soutiendra le Projet AMAZE, qui vise à étendre la capacité de production à 8 GWh d'ici 2027. L'entreprise prévoit de construire quatre lignes de production automatisées pour répondre à la demande croissante, soutenue par un carnet de commandes de 589 millions de dollars et un pipeline commercial de 14,2 milliards de dollars. Le prêt, structuré en quatre tranches, couvrira 80 % des coûts éligibles et arrivera à maturité en juin 2034. Le Projet AMAZE devrait créer jusqu'à 1 000 emplois temporaires et permanents dans la région de Mon Valley.
Eos Energy Enterprises (NASDAQ: EOSE) hat ein Darlehen in Höhe von 303,5 Millionen Dollar gesichert, das von der Kreditprogrammbehörde des US-Energieministeriums garantiert wird. Dies stellt das erste Title-17-Batteriedarlehen unter der aktuellen Administration dar. Die Finanzierung wird das Projekt AMAZE unterstützen, das darauf abzielt, die Produktionskapazität bis 2027 auf 8 GWh zu erweitern. Das Unternehmen plant den Bau von vier automatisierten Produktionslinien, um der wachsenden Nachfrage gerecht zu werden, und wird dabei durch einen Auftragsbestand von 589 Millionen Dollar sowie eine kommerzielle Pipeline von 14,2 Milliarden Dollar unterstützt. Das Darlehen, das in vier Tranchen strukturiert ist, wird 80 % der förderfähigen Kosten abdecken und läuft bis Juni 2034. Das Projekt AMAZE wird voraussichtlich bis zu 1.000 temporäre und permanente Arbeitsplätze in der Mon Valley-Region schaffen.
- Secured $303.5M DOE-guaranteed loan for manufacturing expansion
- Strong order backlog of $589M and $14.2B commercial pipeline
- 90% domestic content in U.S.-based supply chain
- Expected creation of up to 1,000 jobs
- Achieved 10-second battery manufacturing cycle times
- Loan amount reduced from initial conditional commitment
- Initial funding delayed up to 45 days
- Subject to customary covenants and conditions precedent for each advance
Insights
The
The loan's favorable terms, including Treasury rate-based interest and 10-year maturity, significantly reduce capital costs. With
The automation achievements, particularly the 10-second battery manufacturing cycle times, represent significant operational efficiency. The four-tranche loan structure aligns well with the phased expansion of automated production lines, allowing for controlled scaling and optimization of manufacturing processes.
The reduction in projected operational costs that led to a lower loan amount than initially anticipated suggests improved manufacturing efficiency and cost control. The domestic supply chain strategy, while potentially more expensive than overseas alternatives, provides better control over quality and reduces geopolitical risks.
Loan supports next phase of Company’s growth, expected to bring annual production capacity to 8 GWh, meeting long duration battery energy storage systems’ growing demand
First Title 17 Battery loan closed under the current administration after an application and approval process that began in January 2021
Loan supports innovative technology development and closes 15 months after conditional loan commitment and detailed due diligence review
Eos’ technology combined with Cerberus Capital Management and DOE funding addresses critical needs essential to long-term United States energy security
TURTLE CREEK, Pa., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”), a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems, today announced the successful closing of a
“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,” said Eos Chief Executive Officer Joe Mastrangelo. “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
According to Fortune Business Insights, the battery energy storage system market in the U.S. is projected to grow significantly, reaching an estimated value of USD
Project AMAZE is designed 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. The final loan guarantee amount of
Eos Chief Financial Officer Nathan Kroeker added, “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’ manufacturing expansion under Project AMAZE is poised 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.
LOAN DETAILS
The key terms and conditions of the DOE loan are summarized below:
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Haynes Boone, LLP served as Eos’ legal advisor.
About Eos Energy Enterprises
Eos Energy Enterprises, Inc. is accelerating the shift to clean energy 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.
Eos Contacts
| Investors: | ir@eose.com |
| Media: | media@eose.com |
Forward Looking Statements
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 the DOE to receive guarantees under the loan guarantee agreement, our ability to meet the applicable conditions precedent under the loan guarantee agreement, 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 achieve the operational milestones on the delayed draw term loan; 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; uncertainties around our ability to meet the applicable conditions precedent to any funding under the DOE loan; 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.
Key Metrics
Backlog. Our backlog represents the amount of revenue that we expect to realize from existing agreements with our customers for the sale of our battery energy storage systems and performance of services. The backlog is calculated by adding new orders in the current fiscal period to the backlog as of the end of the prior fiscal period and then subtracting the shipments in the current fiscal period. If the amount of an order is modified or cancelled, we adjust orders in the current period and our backlog accordingly, but do not retroactively adjust previously published backlogs. There is no comparable US-GAAP financial measure for backlog. We believe that the backlog is a useful indicator regarding the future revenue of our Company.
Pipeline. Our pipeline represents projects for which we have submitted technical proposals or non-binding quotes plus letters of intent (“LOI”) or firm commitments from customers. Pipeline does not include lead generation projects.
Booked Orders. Booked orders are orders where we have legally binding agreements with a Purchase Order (“PO”), or Master Supply Agreement (“MSA”) executed by both parties.
FAQ
What is the value and purpose of Eos Energy's DOE loan guarantee?
When will Eos Energy receive the initial funding from the DOE loan?
What is the maturity date of Eos Energy's DOE loan?
How many jobs will Eos Energy's Project AMAZE create?
