Make More in America Initiative to Fund Expansion of ESS’s Long-Duration Energy Storage Manufacturing Capacity
ESS, a leader in long-duration energy storage, will expand its manufacturing capacity in Wilsonville, Oregon, backed by a $50 million financing package from the Export-Import Bank of the United States (EXIM). This funding, part of the Make More in America Initiative, aims to meet the surging global demand for ESS's iron flow energy storage systems and enhance cost efficiencies. ESS's technology, already in use in Europe, Australia, and Africa, supports the global transition to clean energy. The expansion will triple the annual production capacity and is expected to deliver significant economic benefits locally and nationwide. ESS's commitment to U.S.-made products maximizes the initiative's job-creation potential.
- $50 million financing from EXIM.
- Tripling of annual production capacity in Wilsonville, Oregon.
- Expansion supports global demand for iron flow energy storage systems.
- ESS's technology aids in global clean energy transition.
- Significant economic benefits for Wilsonville and nationwide.
- Commitment to U.S.-made products strengthens domestic job creation.
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ESS's manufacturing scale-up will allow the company to achieve cost efficiencies, which can improve profit margins. Increased production capacity often leads to economies of scale, where the cost per unit of production decreases as volume increases. This move could make ESS's products more competitively priced, potentially increasing sales.
Additionally, ESS is leveraging a domestic supply chain that spans 29 states. This not only mitigates risks associated with international supply chains but also aligns with the increasing focus on domestic manufacturing and job creation in the U.S. This financing will also support the creation of good-paying jobs, which can have a positive economic impact locally and nationally.
ESS Tech's expansion comes at a pivotal time in the global clean energy transition. As more countries adopt renewable energy solutions, the demand for reliable energy storage systems becomes critical. ESS's iron flow batteries, capable of up to 12 hours of energy storage, address this need by mitigating renewable intermittency—one of the biggest challenges in renewable energy adoption. This positions ESS as a key player in the renewable energy market.
Moreover, ESS's existing partnerships with major global entities like Honeywell International and German energy company LEAG signal strong market validation. These partnerships not only provide ESS with a solid customer base but also enhance its credibility and market presence.
The company's recent venture into sub-Saharan Africa with Sapele Power showcases its international expansion strategy. This move not only diversifies ESS's market but also taps into emerging markets with high growth potential. Such strategic expansions can attract new investments and open up further growth opportunities.
ESS’s focus on iron flow battery technology is noteworthy in the context of the broader energy storage landscape. Iron flow batteries offer several advantages over traditional lithium-ion batteries. They are inherently safer, have a longer lifecycle and are more environmentally friendly due to their use of abundant and non-toxic materials. This makes ESS’s technology particularly well-suited for large-scale, long-duration energy storage applications.
The ability to triple production capacity will likely lead to increased adoption of iron flow technology, as scalability often drives down costs and makes new technologies more competitive. This could position ESS as a front-runner in the LDES market, which is expected to grow substantially as renewable energy adoption increases globally.
The environmental benefits of ESS’s technology also align with global sustainability goals, making it an attractive option for countries and companies looking to reduce their carbon footprint. This alignment with global trends can drive sustained demand for ESS's products, ensuring long-term growth.
Launched in 2022, EXIM’s Make More in America Initiative (MMIA) makes available medium- and long-term loans, loan guarantees, and insurance to finance export-oriented domestic manufacturing projects. MMIA supports environmentally beneficial projects, small businesses, and transformational export transactions, in areas including semiconductors, biotech and biomedical products, renewable energy, and energy storage while supporting domestic jobs. This partnership with EXIM is expected to deliver economic benefits both in
“Our partnership with EXIM underscores the critical role that American-made clean energy technology will play in the global clean energy transition,” said ESS CEO Eric Dresselhuys. “ESS’s iron flow technology is already deployed in
Financing approved by EXIM will enable the tripling of annual production capacity in
“We are proud to approve EXIM’s fourth Make More in America transaction to small business and energy storage manufacturer ESS,” said Chair Reta Jo Lewis. “This transaction will ensure that EXIM continues to meet our mandates to support technologies that are critical to the global energy transition while bolstering supply chains and supporting hundreds of good- paying jobs at home.” As the leading commercial manufacturer of iron flow battery technology, ESS’s LDES solutions mitigate renewable intermittency and enable renewable energy to become baseload energy. With up to 12 hours of energy storage capacity, ESS iron flow solutions bolster energy resilience and reliability, ensuring electricity is consistently available, despite aging infrastructure, climate impacts, location, or fluctuations in renewable supply and demand.
Recently, ESS announced a partnership, financed in part by EXIM, with Sapele Power, a Nigerian integrated energy company, representing one of the first energy storage projects in
About ESS
ESS Inc. (NYSE: GWH) is the leading manufacturer of long-duration iron flow energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source iron, salt, and water, ESS iron flow technology enables energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com.
Forward-Looking Statements
This communication contains certain forward-looking statements regarding ESS and its management team’s expectations, hopes, beliefs, or intentions regarding the future. The words “estimate”, “expect”, “will” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Examples of forward-looking statements include, among others, statements regarding the status of ESS manufacturing, products and technology and customer relationships and product deployments. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments. Many factors could cause actual future events to differ materially from such expectations, including, but not limited to, disruptions, or quality control problems in the Company’s manufacturing operations; as well as those risks and uncertainties set forth in the section entitled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on May 8, 2024, and its other filings filed with the SEC. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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Investors:
Erik Bylin
Investors@essinc.com
Media:
Morgan Pitts
503.568.0755
morgan.pitts@essinc.com
Source: ESS, Inc.
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