Eos Energy Enterprises receives $22.7 million second loan advance from DOE

TURTLE CREEK, Pa. - Eos Energy Enterprises, Inc. (NASDAQ:EOSE), a $1.2 billion market cap energy storage company, has received a second loan advance of $22.7 million from the Department of Energy’s Loan Programs Office, the company announced Tuesday. According to InvestingPro data, the company has shown strong momentum with a 17% return over the past week.

This advance follows the first $68.3 million received in December 2024, bringing the total drawn to the maximum allowable amount under the first tranche of $90.9 million. The funding is connected to the completion of Eos’s first manufacturing line for zinc-based battery energy storage systems.

The loan advance covers 80% of eligible costs incurred as part of the company’s production expansion plans related to Project AMAZE. According to the company, production volumes at the first manufacturing line are increasing weekly as it works toward achieving the full 2 GWh capacity.

"The loan proceeds from the DOE, which follow the recently upsized convertible notes and common stock offerings, continue to strengthen our financial position," said Nathan Kroeker, Eos Chief Commercial Officer and Interim Chief Financial Officer, in the press release.

Eos has submitted a purchase order for its second manufacturing line as it aims to expand production capacity. The company recently closed $336 million in concurrent offerings of common stock and convertible senior notes.

The American energy company manufactures zinc-based battery energy storage systems in the United States, focusing on systems that can support 4 to 16+ hour applications. The company states its technology is designed to overcome limitations of conventional lithium-ion technology.

Eos, founded in 2008 and headquartered in Edison, New Jersey, is working to build a domestic supply chain and scale its battery manufacturing operations in the United States.

In other recent news, Eos Energy Enterprises has announced significant financial maneuvers, including an upsized convertible notes offering to $225 million, increased from the initially planned $175 million. These notes, due in 2030, bear an interest rate of 6.75% and are expected to close on June 3, 2025. The company also priced a public offering of 18.75 million shares at $4.00 each, with the potential for underwriters to purchase an additional 2.81 million shares. The net proceeds from these offerings are expected to be used for repurchasing existing convertible notes, prepaying a portion of outstanding borrowings, and general corporate purposes. Stifel analysts recently lowered their price target for Eos Energy from $9.00 to $8.50 but maintained a Buy rating, citing a stronger balance sheet despite recent stock dilution and internal changes. Analysts at Stifel expressed confidence in the company’s technology and potential for future growth, despite acknowledging execution risks. The announcements of these offerings led to a decline in Eos Energy’s stock, as investors expressed concerns about potential stock dilution. The company has engaged Jefferies and J.P. Morgan as joint lead book-running managers for the stock offering, with other financial institutions involved in various capacities.

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