Eos Energy lands $315.5 million investment to expand its LDES market footprint 

The U.S.-headquartered zinc hybrid cathode battery storage manufacturer Eos Energy Enterprises has announced a strategic investment of up to $315.5 million from an affiliate of fellow U.S. company Cerberus Capital Management.  

Eos Energy specializes in zinc-powered battery energy storage technology. The company hopes Cerberus’ investment will help it to capitalize on the demand for energy storage solutions as well as the demand for safer alternatives to existing battery technologies.

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Among other products, Eos manufactures an aqueous zinc battery that it designed to overcome what it sees as the limitations of conventional lithium-ion technology. 

An alternative investor based in New York, Cerberus has more than $60 billion assets under management. It has invested in companies operating in sectors as diverse as aerospace, finance, mining, and non-profit.  

Its investment in Eos Energy is structured to allow the company to meet its market demands effectively and restructure some of its existing debt. Cerberus structured it as a $210.5 million delayed draw term loan that is partially based upon Eos Energy achieving operational milestones, and a $105 million revolver that the company can draw upon with Cerberus’ permission. 

According to Eos’ CEO Joe Mastrangelo, the investment “provides the critical funding needed” to execute the company’s “profitability roadmap.” 

“Cerberus’ investment, combined with their deep operational and technical knowledge, enables us to expand our manufacturing capacity, streamline our supply chain, and strengthen our market position,” he added. 

Last September, Eos Energy said it was aiming for 8 GWh of annual energy storage production capacity in the U.S. by 2026 as part of its $500 million program called AMAZE (American Made Zinc Energy) backed by the U.S. Department of Energy. 

Eos chief financial officer Nathan Kroeker said that the investment news does not change the company’s broader strategy. “We remain committed to the cost-out milestones and our path to profitability previously outlined.”