Enersys at 37th Annual ROTH Conference: Strategic Expansion and Innovation

On Tuesday, 18 March 2025, EnerSys (NYSE: ENS) presented at the 37th Annual ROTH Conference, offering a strategic overview that balanced optimism with caution. The company, with a revenue range of $3.5 billion to $4 billion, outlined its focus on technological advancements and strategic investments, while also addressing challenges such as tariffs and funding uncertainties.

Key Takeaways

• EnerSys is investing in a lithium-ion Gigafactory in South Carolina to secure its supply chain.
• The company holds a dominant position in critical communications networks and data centers.
• EnerSys is transitioning from internal combustion engines to electric solutions in the Motive Power sector.
• Acquisition of Brintronics boosts EnerSys’ capabilities in Aerospace and Defense.
• The company is leveraging strong customer relationships to drive growth.

Company Overview and Strategy

• EnerSys operates across three divisions: Specialty, Motive Power, and Energy Systems.
• The company focuses on technologies like flooded lead acid, thin plate pure lead (TPPL), and lithium batteries.
• Investments are directed towards power electronics, battery management systems, and service capabilities.

Operational Updates

• EnerSys is expanding its product portfolio to meet market demands, emphasizing customer intimacy and technological roadmaps.
• Strategic acquisitions, such as Brintronics, enhance capabilities in hybrid vehicles and defense solutions.
• The planned Gigafactory aims to reduce costs and secure a compliant supply chain.

Energy Systems

• EnerSys maintains a strong share in UPS systems for data centers, targeting growth in power management solutions.
• Investments during COVID have slowed, but optimism remains for a telecom turnaround and data center expansion.

Motive Power

• The sector is shifting from lead-acid to TPPL and wireless charging solutions, with over 1 million chargers deployed.
• Electrification of fork trucks presents significant opportunities, with 50% still using internal combustion engines.

Specialty (Aerospace, Defense, and Transportation)

• EnerSys is a major provider to the U.S. Department of Defense, with significant lithium adoption.
• The Brintronics acquisition enhances offerings in directed energy and anti-drone solutions.
• TPPL batteries are used in trucking, with substantial growth in the aftermarket business.

Lithium-Ion Gigafactory

• The $200 million facility in South Carolina aligns with administration goals to redomesticate jobs.
• Despite funding uncertainties, the project is positioned to make cells cheaper domestically.

Future Outlook

• EnerSys is developing fast-charging storage systems for power management in warehouses.
• Integration of Battery Energy Storage Systems (BESS) is planned to manage logistics energy systems.

Readers are encouraged to refer to the full transcript for a detailed understanding of EnerSys’ strategic direction and market positioning.

Full transcript - 37th Annual ROTH Conference:

Chip Moore, Sustainability Research team: We’re good to go here. Thanks everybody once again for joining us at the thirty seventh Annual ROTH Conference here in Dana Pointe. My name is Chip Moore. I’m on the Sustainability Research team. Very happy to have with us today, EnerSys, Mark Matthews, I think I believe Head of Specialty Global and Lisa Hartman from VP of IR and Corporate Communications, if I got that right.

So thanks again for joining us. Maybe just Mark, maybe have you start with a brief intro, high level overview of the company for people that might not know

Mark Matthews, Head of Specialty division, EnerSys: it. Sure. Sure. So thank you guys for having me. Thanks for the conversation.

My name is Mark Matthews. As I mentioned, I’m Head of our Specialty division at EnerSys, which is our aerospace defense and transportation division, does a lot of our lithium products. My background goes back thirty years, which is hard to believe it’s thirty years at this point, of designing lithium ion cells. I’m a chemical engineer by trade, and at some point, they said, no more playing in a lab. You actually got to earn your money and do real work.

So I took over our division in a various piece of defense about eight years ago at EnerSys, and then especially became an official division about three or four years ago. InterSys in and of itself is a unique company. We’re just going to be about $3,500,000,000 to $4,000,000,000 of revenue this year. We have three really divisions that we do a lot of work in. So one is the specialty division, which I mentioned.

The other is Motive Power, which is really focused on conversion of ICE fork trucks into battery powered fork trucks and the charging solutions that go along with that. And the third is what we call energy systems, which is really a telecom data center and broadband support of UPS and support for those systems from electronic standpoint. We do that with three different technologies. The first technology is energy storage versus batteries. So we do flooded lead acid batteries.

We do thinplate pure lead, which is our own unique version of a lead acid battery that has some capabilities that allows it to perform kind of in a hybrid space between flooded batteries and lithium batteries, and we’ve just started to do lithium batteries in and of ourselves. I’m sure at some point today, we’ll talk about the Gigafactory we’re getting ready to build in South Carolina in Greenville. We also do power electronics, which I think is an important part of what we do from a battery management system perspective, as well as charging solutions, wireless charging solutions for our products and power distribution. And finally, we have a service element of our business, which is really unique. So I think one of the reasons we’ll talk about the stickiness we have with our customers, why we’re a valued competitor and why we’re able to continue to get wallet share from our customers is our service capability and the ability to not only provide the product but have the service and ongoing support to really see the true total cost of ownership of a value proposition for lithium or a thin plate pure lead battery applications become a reality.

So that service is a key element to us going forward. So that’s intersys in thirty seconds.

Chip Moore, Sustainability Research team: Perfect. Thanks for that. And maybe a follow-up on that, maybe expand on the importance of customer customer intimacy, how that drives your future sales and then chemistries, you’re a battery expert, Thinplay pure lead, lithium ion, how these progress and your moat, right?

Mark Matthews, Head of Specialty division, EnerSys: Yes. I think from a country perspective, I mean, I’ll speak from starting, what you can accomplish with having that. So for example, in the aerospace and defense piece of our business, we’ve been the largest provider of batteries for the U. S. Department of Defense and a very large battery provider for our global partners in Europe.

Just having those relationships has opened doors for us to expand not only the products that we make, but the those that intimacy we have is to get support for our future planning. So much of our investment that we require for advancing our products is funded by the U. S. Government. The the the facility that we’re building in Greenville has a significant funding element from the Department of Energy, and that’s based on a long history of providing and living up to what we say we’re gonna do.

When you look at some of the other businesses, you know, and we’ll we’ll talk about some of the largest, you know, logistics companies in the world. You know, we realized not too long ago and probably shouldn’t couldn’t realize it faster, actually, is that, you know, by having these great relationships, we need to be offering more and more to those specific customers. So we are a company that has a lot of different large customers. The largest customers in the world are our customers. But we also realize that we are providing one solution for them.

So that intimacy of managing how we’re gonna become that service provider, but also having that conversation and understanding what their needs are and then be able to execute against those needs, with our technology and expand our product portfolio and our technology road maps through that customer to see is important. One thing I’ve screamed about from ever, as we’ve developed our technology roadmaps in in my division is that’s only done in conjunction with a good customer. So, you know, we need to understand where our customers are going and where they’re gonna be not only in a year from now, but in five years from now, and then make sure we have technology that that intersects them at that road map. And so that’s one thing that we’ve done. As you mentioned, technology, you know, the advancing and the investments we made in thinplate pure led was understanding that maintenance free was becoming a real issue in this marketplace.

We had customers that were were were investing people time, labor time in a world that’s confined by labor, that they were they were out there looking for us to help them solve that problem. So we’ve converted a lot of our customers over to thin plate neurled, and that’s we all now see the same thing happening in lithium. We see the need for higher energy solutions. We see the the need for a compliant lithium supply chain that allows us to to be able to locate these assets on our grid, and and with specific customers. And us owning that supply chain and and reducing our customers’ requalification costs that are trying to use EV sales for for purposes that are not EVs, that creates a real logistic problem for our customers and a real expense for our customers.

You know, just save give an example, you know, take what it qualifies to put a a satellite in space. Right? We qualify a battery for that, and then you come back a week later and say, oh, that the battery’s now changed. It costs tens of millions of dollars for Boeing to requalify that satellite. So we’re able to eliminate that by owning that supply chain, and that’s something that we’ve seen that our customers needs.

And that’s that’s the most severe example, but that example exists in motive power that exists with, you know, our telecom customers and our broadband customers. So it’s for us understanding that technology roadmap, understanding where we want to take that technology, and then putting the right investments to go forward to make that kind of a reality. And that’s either with the automation investment in our plants or investments in the technology for the future.

Chip Moore, Sustainability Research team: Great. And maybe we can sort of dive into segments a little bit. So Energy Systems, right, you have dominant share in Critical Communications Networks. Just talk about what you’ve seen there over the past few years and it seems like it’s troughing and and coming coming back potentially here in a little bit. So so maybe start there.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. With Energy Systems, it’s been it’s been a tough couple years. I mean, since, you know, there was a huge expansion of investment during COVID, for infrastructure. So we saw we saw the the investments made around COVID and and up to just prior to COVID of significant investments and and the promise of five gs coming and the promise of four gs being rolled out. We were able to really ride a nice growth pattern as that came up.

Since then, we’ve seen those investments fall. We’ve seen that business has been able to continue to diversify and stay stable, but not at the five year plans we had on the growth because we just haven’t seen the investments that we expected to see from a standpoint on continuing the five gs rollout and the small cell rollout that we expected to see in that business. We’re still very optimistic that’s going to become a reality. We’ve actually started to see signs of that picking back up over the last, I don’t know, let’s say, last two or three quarters. We’re starting to see that business pick back up and start to see the growth that we would expected to see a year or two ago.

So as that starts to turn around, we’re extremely optimistic. We also see in that space, in the telecom space, in the broadband space, a continued growth, and then we’re seeing the data center space become, as everyone knows, is booming. So it’s about positioning the right product for that data center growth and that power management growth in those data centers over the next several years. So, you know, we’ll talk a little bit about in our future ventures where we’re doing a fast charge and storage, which is really a best system, a battery energy storage system, that allows us to manage power in a significant way. We see with those data center opportunities as that’s a potential for us to be able to manage not only the UPS capability of those data centers, but also use that to to manage their load and follow their loads as they need to just because power is so difficult.

I mean, just when we were doing the research of how and where we’re gonna have to build a plant, the biggest factor we had was finding available power to build a plant. And it’s it’s it wasn’t shocking to me. I was like, this should be the easiest part. But so, you know, just knowing that a very aged grid and trying to work on that grid is a concern. So I think the resiliency that our products are starting to create within that market space is good.

I think to see a bit of a turn back on some of the investments in the main bit of large telecom companies is a positive for us. And we’re hoping to see that continue and that space continue to grow. As you said, we have a dominant share there, and we think our product portfolio is only going to grow as we start to have the ability to do lithium in that space as well.

Chip Moore, Sustainability Research team: Perfect. And you brought up data center, right? It’s the hot topic. Maybe you can talk a bit more about EnerSys’ role. Right?

I think you have strong share in in UPS systems, but maybe for those that aren’t as familiar and, you you know, what you’re thinking about in the future and then even last mile sort of edge processing potential and things like that.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. So I think, you know, obviously, we’ve we’ve done a lot of UPS systems within EnerSys, and and data center fits that well. Like I mentioned, I think the key for us is to expand our our wallet share with those data center customers and help them do a real power management solution. We we are you know, we’re at, what, I think 50% of data center customers Yes. Of The US data centers that the EnerSys is supporting right now.

And we see that we continue to grow that going forward. As you see that expansion going, we see that there’s there’s significant needs improvement that’s coming out of that. And with last mile, that’s only going to increase the data center needs. So we know we’re on the cusp of significant growth. Even the most conservative estimations indicate that it’s a very good spot for Energous to be in.

So a lot of our investments are around creating that product portfolio that can make us successful across all the needs of the data center application, not just the UPS piece.

Chip Moore, Sustainability Research team: Perfect. So maybe we shift and the sake of time to motive power. So again, you have very strong share. Just current dynamics that you’re seeing, right, there’s some uncertainty, that’s another buzzword that we hear, tariffs, etcetera. So maybe start there.

Motive Power, unfortunately, is the Gary Run specialty

Mark Matthews, Head of Specialty division, EnerSys: is our best business, right, as judged by this room for sure because a it’s a business that makes our most money. It has our best adjusted operating earnings. It’s been a successful business, and it’s been a successful business based on exactly the model we talked about, which is we have the right technology, we have the right service deployment, and we have very stickiness with our customers. We have been had significant opportunity and transition from flooded led flooded batteries to our thinplate pure lead, so going from maintenance to maintenance free batteries, and then creating wireless charging solutions around those. We have, I think, at one point, it’s over a million chargers we’ve deployed in this space.

So we’re very comfortable with charging solutions and the results of what comes out with that. So I think that’s an interesting part of that business for us. Tariffs, as with all of our business, and I’ll talk about it in my business, how that’s had an impact, tariffs and the uncertainty of tariffs, I think, has been really the challenge. It’s been the on and off again that’s been we’re trying to manage our way through. Our concerns are as capital investments are pushed back, does that what does that do for us?

And it’s probably something that’s a bit beyond our control. But if people aren’t making the capital investment into trucks, does that results in obviously a market concern for us going forward? And there’s also just some price pressures that are going to come along with the tariffs that we’re going to have to react to, particularly in the motive power market with steel and aluminum. So we’re working that right now. I think we have a good plan to go forward to make sure we’re able to pass that cost along.

But it’s the on again off again of the truck buy that’s probably the biggest concern for us.

Chip Moore, Sustainability Research team: Great. And maybe expand on some of the people think of it as a GDP growth business, but there’s some higher growth elements around automation and electrification. Talk about that. And then you know, you’re a battery expert, so lithium ion adoption in sort of the warehouse, you know, your thoughts on that.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. So so I think that the opportunity that’s probably lost, and this is something I’ve learned in the last eight years in Internet is just how significant the transition is of electrification of fork trucks, meaning that there’s still 50% of the fork trucks out there are are ICE or, you know, combustion engine fork trucks. And so for us, that is low hanging fruit that we go target, and we can target that in several different ways. We can target that with our flooded product, which is relatively inexpensive. We can do a maintenance free product, which is kind of that middle of the road product that gives you the template pure lead maintenance free, or we can go all the way to lithium.

And with lithium, that gives us new capabilities, and that gives us some even automated warehouse capabilities that are an advantage in that that location where you can take advantage of the full power of lithium. The fact that it doesn’t need to be that it can be charged quickly, doesn’t need to be charged as frequently, and has infinite cycle life, for all practical purposes relative to lead. And so from our standpoint, we’ve now got a full suite of products that regardless of what that Modipower customer needs, our goal is just to get them to switch and understand that you’re gonna save money by going to an electric solution. You’re gonna make your warehouse a lot better place to work if you go to electric solution, and then help us guide you that path. So we’re then able to then guide them guide our customers through that to say, what’s the best way?

Here’s a full suite of products from relatively easy, low barrier of entry cost wise to a full solution with an incredible return on investment. And having the right chemistry solution to do that has been a big part of our success.

Chip Moore, Sustainability Research team: Great. Okay. We can come back to Giga Factor. I guess maybe we dive into specialty, right? You’re the business you lead.

Aerospace and defense, right, to start. You have very strong relationships, maybe expand on that. And then you made an acquisition there, Brentronics, that looks like it’s been a good fit. Talk about that and potential for additional m and a like that?

Mark Matthews, Head of Specialty division, EnerSys: Yeah. So I think, so aerospace and defense, I’m I’m gonna say a lot of good things about it because it’s my baby. So so aerospace and defense has been a a nice growth business for us, and it’s it’s really been a catalyst from a technology standpoint to be able to to trial and learn some of these new technologies that are out there, from electrochemical perspective and also from a technical perspective on on battery management systems and charging solutions. So we will take advantage of that and roll that out to the rest of the company. From we are the largest provider of batteries, power solutions to the US Department of Defense by far.

It has become a really significant part of our business. It’s a very profitable business for us, but it also represents relationships that we can take advantage of. So the opportunity to buy Brintronics, which Brintronics, what they do is they they buy lithium cells. They package them. They create charging solutions.

They do expeditionary power type things. So what they’re able to do is take advantage of, the future lithium plant we’re gonna build. We’re gonna integrate those cells into their products, and then they can then take and expand those products out into things like hybrid vehicles, directed energy type solutions, antidrone solutions, all those type of elements that are becoming more and more the forefront of what you see on the news every day, we’re able to provide the the the battery power to do that. Our our A and D business is is significantly lithium as compared to the rest of our business. It is the largest chunk of the specialty business is lithium as a result as compared to any of the other parts of our business.

And it’s something that we made the investments in and I feel like has has has really started to pay off for us, as a leader in that space. Brentronics, I can’t say enough good about them. We’ve known them for a long time. First and foremost, they were a great cultural fit for us. I think that when we went out and looked at the acquisition, it had been a while since EnerSys had done an acquisition, since pre COVID of any of any real size.

And Brintronics was a great fit because we knew that culturally they would fit right. And then from a target market perspective, we were able to take advantage of the credibility that EnerSys brings from a finance perspective, from a cash perspective to win orders that Brinchonics couldn’t win as a small company. So we’ve seen the order intake from that business really start to tick up in a significant way. And I think it’s the common it’s one of those two things where the combination of two good entities make a really good two plus two made five here. And I think that’s what we’ve really learned from Brintronics is this these are the acquisitions that are out there.

How do we take advantage of these across all of our spaces? And how do we utilize these to really grow the top and bottom line in the right way in an accretive way? So I think that’s the positive with Brintronics and certainly helps us get credibility as you talk about the lithium plant.

Chip Moore, Sustainability Research team: And maybe a follow-up on A and D, one of the questions I’ve gotten a few times. Any concerns around some of the government efficiency, cost cutting dynamics? Is that a concern at all for that line of business?

Mark Matthews, Head of Specialty division, EnerSys: It’s a concern from a timing perspective. I mean, we’ve seen some of our programs that have just been delayed a little bit in terms of, you know, this money wasn’t allocated as quickly. But to be honest, that happens at every transition between government entities. Anytime we have a presidential transition, or government change, we see a little bit delay. So we haven’t seen a huge concern.

Obviously, I think for us, the budget is we need the budget to be passed. We need it to be fully loaded in for us to make sense. But, no, there hasn’t been a huge disruption yet from that, but we’re keeping our eyes on it.

Chip Moore, Sustainability Research team: Great. And maybe the other piece of specialty, right, in trucking, auxiliary power, what you’re seeing, what’s the latest signs of improvement and then I think the aftermarket opportunity, right, is pretty exciting. So talk about that.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. So so the other part of our business or my business is is transportation. So we talk class eight trucking on our sleeper caps. So as you guys are aware, there’s no anti idling, doesn’t exist anymore, So or you can’t idle your your truck anymore. So a sleeper cab can no longer park in the rest stop and and keep its engine running all night.

What happened when that happened is traditional flooded flooded batteries that were trying to be the auxiliary power unit died. They couldn’t handle that load. So our thin plate pure lead batteries are able to do that in a really, really strong way to continue to start the vehicle and power the vehicle as you would a normal normal flood acid battery, but it can actually run that overnight load for air conditioning and for for electronics for that cab without any issues. So we’ve been able to successfully convince fleets like Penske and others to convert their entire fleet over to a template pure lead battery. What that’s resulted in is about one now it’s one out of three, almost one out of almost two out of every five batteries that are made in North America trucks that are made in North America use EnerSys Group thirty one batteries out of the factories.

Now we’ve had our issues with with trucking in the last year because it’s been a a down market. But what that’s created for us is an opportunity to put in place the logistics to be able to to go after and close that out and and be able to go after that aftermarket and be able to win the aftermarket business and that trucking business. And and we’ve seen significant growth. I think this year, we’re up, over 20% year on year, just an aftermarket business in that segment. Even though we’re down on the OEM segment, we’re up in the aftermarket segment, which has always been our plan, not to go down in one but to go up in the other.

So our goal is to continue to grow that ratio. So we have about a 30% OEM business, 70% aftermarket business, and we feel like that would be a very healthy between those two businesses.

Chip Moore, Sustainability Research team: And so a follow-up there, and then to go back to Energy Systems, but manufacturing, right, you’re making some investments around flexible, faster lines, and I believe it plays in both those segments. So it didn’t play pure lead. So talk about that and what that’s going to bring.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. We did an acquisition in 2018 for NorthStar. Yep. Within Springfield, Missouri, and we started to run that normally. And what we realized through COVID and through our different markets is we didn’t have the flexibility in that plant that we needed.

And we still had a, you know, a relatively relative to our other lithium lithium template plants, we had a lack of automation that we needed. So we were able to go we made those investments, and that’s coming online this year to fully automate the Springfield plants to be more look like what we would see in our other global plants in Ross, France and in Warrensburg, Missouri. And that’s gonna give us a flexibility that regardless of where the demand is up or down, we’re able to make those those all those different form factors on multiple different lines. So simple concept, but an investment that needed to be made. It has the huge a large impact on my P and L because it means that we’re we have automated automated equipment building our batteries for the the trucking industry, and And it means we have the flexibility to decide what to build on what lines and to keep those plants full so we’re not relying on mix to make that happen, just relying on total portfolio and then we can or total demand and then we can figure out how to split that up.

So, it’s taken a while to get there, probably longer than we wanted to get there. But this is the first year we’re going to have all of our plants relatively full high speed automation for thinplate pure thinplate pure lead in both Europe and in The States, and that’s going to give us flexibility we’ve never had before.

Chip Moore, Sustainability Research team: Great. I know we have a few minutes here. If anyone has any questions, I’ll open it up or I’ll keep going. So okay. Lithium ion Gigafactory, right, we haven’t really talked about that yet.

So latest thinking around that. Obviously, you won a substantial grant, but I don’t believe that, right, the money’s in the door yet. So just an update.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. I can give you. So we want so our Gigafactory is four gigawatt hour facility. It’s gonna be in Greenville, South Carolina. We chose Greenville for a lot of reasons.

We think it’s a great fit for us. One of the one of the abilities one of the most one of the reasons that became a reality for us is we were able to get a $200,000,000 grant from the Department of Energy. So between the IRA funding that we get for our for our for ourselves, that we produce in in a lot of our TPPL factory and and the, DOE grant as well as state and local monies we’re able to raise, we’re able to to really make this make a lot of sense for us to make this investment. The concept behind the lithium plant is that we can make a cell and cheaper than we can land a cell. We are by under no perception that I’m gonna make a cell cheaper than than CATL is gonna make it in China.

That’s not what we’re trying to do, but we can certainly make a cell for cheaper than I get a CATL cell into my facility in The US. So that’s kind of the background of how we’ve gotten here. We did see probably the biggest impact of the administration change has been basically just the stoppage that we’ve seen with the DOE. We were fortunate that right just before the administration changed, we our our contract was signed. We got our our, our money moved to a national lab.

So we feel like we’re in a really good spot there, but we’re we’re gonna play conservative until we see that money fully released, because it probably has impacts. We don’t if we for whatever reason, that money went away, which we don’t think it will. But if it did, it would probably change kind of the scope of what we’re looking at doing a little bit, but probably not the entity that we would wanna do. So, I think from our perspective, we’re hearing nothing but encouraging things. One, this this project aligns exactly where this administration wants to go, which is to to to build jobs.

And I was part of the one that raised the money for for this plant. And I could tell you that regardless of who I went in and what what side of the aisle you went in on, that’s the one thing they agreed on is they wanted to redomesticate jobs in The US from China. And so I feel like we’re in a really good spot. We’re a heavy defense unit for this plant. So we feel like there’s a lot of momentum behind this to make it a reality.

And, you know, hopefully, we get this this, what’s going on in DC comms down here in the next few weeks, and we’ll get back to business as normal. But until then, we’re holding ourselves conservative and not rolling out and move making decisions till we know exactly when that $200,000,000 is going to be here.

Chip Moore, Sustainability Research team: Awesome. In our last minute here, maybe future growth areas, fast charge and storage, but then there’s a big trade show next week. I think you’re debuting or not debuting, but previewing, right, a new solution, just talk about energy management tomorrow.

Mark Matthews, Head of Specialty division, EnerSys: Yeah. It’s actually this week, and I’ll be there tomorrow at ProMat. I’m driving her to the airport after this, so she can go let’s go do that. So, so I think this is exciting times because it’s it’s really where we can take advantage of our customer to see that we developed. We we have developed a fast charging storage system, but at the core of that fast charging storage system is the best system.

And what we look at is we can take this best system, and in the future, we’re gonna be able to combine that. You know, just think about a a Walmart warehouse. Right? So it’s got all of our forklift batteries. It’s got all of our, our charging solutions in there, and now I integrate a best system in there.

I’m doing the entire power management of the entire warehouse and able to not only save them money on the grid, but actually help them level load the grid. So when they expand, they don’t have to have additional capacity brought in. Battery energy storage, which is a big battery. I probably shouldn’t say best system because it’s just best. Right?

I just said battery storage system system. Anyway, yeah. So it’s it’s just a bet. So it’s a large system. It’s a one megawatt hour or bigger.

And what that system has able to do is application stack on the back end to save money. So it does demand reduction, demand charging. It allows you to to pull less energy off the grid and basically act as a buffer, to the grid for that solution. Where we see we have a lot of people are doing that, and we’re we’re not we’re not we’re not kidding ourselves. We’re unique in this market.

We’re unique is we have infrastructure in places already that need best systems that will be able to tie our Internet of Things in those locations to a best system. And that kind of puts us in a unique spot to take advantage of a whole portfolio of solutions within a warehouse, versus just a best system that’s managing your your grid. You’re managing your whole your whole energy system within a with logistics warehouse. And I think that’s an exciting thing for us, and it represents our ability in the future to take advantage of a lithium plant where I control the cell, have a U. S.

Made cell, I’m putting something on the grid. All those things start to line up where we make a lot of sense in that space.

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