Eos Energy Enterprises Inc., which provides zinc-based energy storage systems, said Aug. 29 that it has achieved all four of its first performance milestones and can draw an additional $30 million on a Cerberus Capital Management LP loan.
“The team continues to execute on our operational targets and today’s announcement is a testament to their effort and focus,” said Nathan Kroeker, chief financial officer for Eos.
Achieving these specific performance milestones and being able to draw on the loan will allow Eos to fund ongoing operations and production expansion to meet the growing demand for long duration energy storage solutions, Kroeker said.
“The partnership with Cerberus is demonstrating its strategic value as we execute our growth plans and bring a commercially scalable and ready alternative to market to meet the emerging need for longer duration energy storage that is safe, secure and manufactured in the U.S.,” Kroeker said last week.
According to Eos, the achieved milestones include objectives related to its automated production line, materials cost-out, improvements in Z3 technology performance, and backlog/cash conversion.
Among specific accomplishments, Eos said it has achieved production cycle times of less than 10 seconds, while exceeding first pass yield targets in the high 90s on its first battery manufacturing line, a significant milestone that the Edison, N.J.-based company said positions it for future profitability.
The remaining two tranches may be drawn in the amounts of $65 million and $40.5 million, respectively, following the Oct. 31 and Jan. 31, 2025 testing dates once Eos achieves the applicable performance milestones.
Eos will hold a virtual special stockholders meeting on Sept. 10, at which stockholders will be asked to consider and vote on two proposals related to Cerberus’s strategic investment in the company.
The Eos Board of Directors recommends that stockholders vote for both the Issuance Cap Proposal and the Adjournment Proposal.