Eos Energy Enterprises Secures $303.5 Million Loan Guarantee from U.S. Department of Energy

Eos Energy Enterprises, Inc. (NASDAQ: EOSE) has successfully closed a $303.5 million loan guaranteed by the U.S. Department of Energy’s Loan Programs Office. This loan, marking the first Title 17 battery loan closed under the current administration, is a crucial step in advancing Project American Made Zinc Energy (AMAZE), intended to fund the expansion of Eos’ manufacturing capacity to 8 GWh by 2027. This expansion is a response to the increasing demand for longer-duration battery energy storage systems in the United States.

CEO Joe Mastrangelo highlighted the strategic shift made five years ago to bring manufacturing operations back to the U.S., positioning Eos as a key player in American manufacturing. The loan will support scaling operations to meet the rising demand for reliable, long-duration energy storage solutions while bolstering American manufacturing efforts.

The U.S. battery energy storage system market is anticipated to reach significant growth, driven by renewable energy adoption and grid stability needs. Eos plans to utilize the funding to establish four automated manufacturing lines that will enhance production capabilities of zinc-based batteries, providing a safe, cost-effective, and sustainable alternative to existing technologies and supporting the transition to a cleaner energy grid.

Project AMAZE aims to position Eos at the forefront of the clean energy transition, targeting 8 GWh of capacity by 2027. The final loan guarantee amount of $303.5 million, lower than initially committed, is attributed to lower operational costs and Cerberus Capital Management’s strategic investment. With support from the DOE loan and the Delayed Draw Term Loan from Cerberus, Eos is poised for sustainable growth.

The loan structure includes customary conditions and events of defaults for a project finance facility, with interest rates based on the U.S. Treasury rate and a maturity date set for June 15, 2034. Haynes Boone, LLP served as Eos’ legal advisor throughout this financing milestone.

Eos Energy Enterprises continues its commitment to advancing clean energy solutions with its proprietary Znyth™ aqueous zinc battery. The Company’s transformation from two employees in 2019 to a 250-plus-person workforce in Turtle Creek represents a significant leap in clean energy manufacturing within the region. Furthermore, this project is expected to create and maintain up to 1,000 jobs, including various apprenticeship opportunities, emphasizing Eos’ dedication to sustainable growth and industry development.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eos Energy Enterprises’s 8K filing here.

Eos Energy Enterprises Company Profile

Eos Energy Enterprises, Inc designs, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial (C&I) applications in the United States. The company offers Znyth technology battery energy storage system (BESS), which provides the operating flexibility to manage increased grid complexity and price volatility.