Eos Energy stock jumps after receiving second DOE loan advance

Published 01/07/2025, 21:56
© Reuters

Investing.com -- Eos Energy Enterprises Inc (NASDAQ:EOSE) stock surged 10% after the company announced it has received its second loan advance of $22.7 million from the Department of Energy’s Loan Programs Office. This advance completes the full draw of the first tranche totaling $90.9 million, which supports the completion of the company’s first state-of-the-art manufacturing line.

The loan advance covers 80% of eligible costs incurred as part of Eos Energy’s production expansion plans related to Project AMAZE. These funds will help the company expand its operational capacity to meet growing customer demand for its zinc-based battery energy storage systems.

"Production volumes at our first state-of-the-art manufacturing line are growing every week as we progress toward realizing the full 2 GWh capacity on Line 1," said Nathan Kroeker, Eos Chief Commercial Officer and Interim Chief Financial Officer. He added that the DOE loan proceeds, combined with recently upsized convertible notes and common stock offerings, strengthen the company’s financial position to scale U.S. production.

Eos Energy has submitted a purchase order for its second manufacturing line to support 6 GWh in recently signed MOUs that are expected to convert to purchase orders. The company is positioning itself to meet demand from AI-driven load growth, data centers, and safety-conscious storage markets.

The DOE funding follows Eos Energy’s successful closing of $336 million in concurrent offerings of common stock and convertible senior notes. This financing has restructured the company’s balance sheet, lowered its cost of capital, and enhanced its ability to grow U.S.-based operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.