ESS Tech (NYSE:GWH) is pursuing a two-platform energy-storage strategy centered on near-term sodium-ion batteries and longer-duration iron flow batteries, CEO Drew Buckley said during Sidoti & Company’s August 2026 Micro-Cap Conference.
Buckley, who became CEO in January, said the company has reassessed its business following challenges commercializing its legacy iron flow technology. He described ESS’s history in three phases: its founder-led development period from 2011 through 2021, its public listing through a SPAC transaction in 2021, and its more recent “Project New Horizon” effort to reposition the company’s products and market strategy.
Shift to a two-platform strategy
Buckley said ESS’s sodium-ion offering is intended to address nearer-term storage opportunities, particularly those associated with data centers and artificial-intelligence workloads. He said high-powered AI computing systems can create rapid power demand spikes that differ from those of traditional server infrastructure.
According to Buckley, sodium-ion batteries can operate across a wider temperature range than lithium-ion systems, which he said could reduce degradation in high-power applications and potentially lessen cooling requirements. He also said sodium-ion systems may require less HVAC or liquid-cooling equipment, potentially reducing capital and maintenance costs as well as noise associated with cooling systems.
The company views sodium-ion as a competitor to lithium-ion storage in applications ranging from roughly two to 12 hours of duration, Buckley said. ESS sees iron flow as better suited for longer-duration uses, generally from 12 to 48 hours.
Buckley said the economic crossover point between lithium-ion and iron flow could be in the 12- to 16-hour duration range, “probably around 14 hours,” based on the need to add additional lithium systems as duration requirements increase. With iron flow, he said, power and energy can be decoupled, allowing duration to expand primarily through additional electrolyte rather than through an entirely new battery system.
Supply-chain and incentive considerations
In discussing sodium-ion, Buckley emphasized material availability and domestic supply chains. He said sodium is more abundant and more geographically available than lithium, while claiming that 98% of lithium battery cells are made in China and 98% of global lithium is mined by Chinese companies.
He said tariffs on imported battery materials and available U.S. incentives could improve the economics of domestically produced storage systems. Buckley cited tax credits that he said can offset the higher costs of U.S. manufacturing during the early stages of scaling production.
“We really do have a Goldilocks opportunity right now within the U.S. to build out this fully U.S. American-made supply chain,” Buckley said, referring to a combination of rising power demand, tariffs and incentives.
Buckley also said the company is evaluating funding options as it seeks to advance its products. He said ESS needs to continue raising capital but does not intend to pursue a strategy of building a large factory before obtaining orders. Instead, he said the company plans to scale production incrementally as it meets product and commercial milestones.
Pipeline and planned product demonstration
ESS has discussed more than $1 billion in customer interest for its sodium-ion offering, Buckley said, though he distinguished that interest from signed orders. The company has one signed letter of intent with Juniper Energy for a project involving a major California utility, which Buckley said is expected to be delivered in the latter part of next year.
The CEO said the company expects a key commercial milestone to be demonstrating a functioning product toward the end of 2026. ESS plans to show a system that operates as a customer-delivered product would, including its charging, discharging and integration characteristics.
“The big unlock for us is going to be when we show what the product actually looks like,” Buckley said. He said prospective customers are likely to want to evaluate the technology directly before converting interest into orders.
Buckley added that the company expects a strong 2027 for revenue if it can convert customer interest, though he did not provide a revenue forecast. He said sodium-ion production could leverage existing manufacturing knowledge developed for lithium-ion systems, potentially limiting the capital needed to reach production volumes.
Looking broadly at the market, Buckley said power generation and energy storage needs are likely to remain important regardless of the ultimate pace of AI investment. He argued that increased data-center development will require additional power generation and storage, while public-market investors currently have limited ways to invest directly in that theme.
About ESS Tech (NYSE:GWH)
ESS Tech, Inc (NYSE: GWH) is a Portland, Oregon‐based company specializing in long‐duration iron flow battery energy storage solutions. The company’s core business centers on the design, manufacture and deployment of modular battery systems that store electricity using an iron‐chloride electrochemical process. These systems are engineered to support grid operators, utilities, commercial and industrial customers in integrating renewable power, managing peak loads and ensuring reliable back‐up power.
At the heart of ESS Tech’s offering is its “Energy Warehouse,” a containerized flow battery system featuring non‐toxic, fully recyclable materials and a simple architecture that separates energy storage capacity from power output.
