ESS Tech, a manufacturer of iron flow long-duration energy storage (LDES) systems for commercial- and utility-scale applications, has closed $31 million in insider-led funding measures.
The funding package primarily involves the execution of a standby equity purchase agreement with YA II PN, granting ESS the right, but not the obligation, to sell up to $25 million of common equity to YA II PN over a 3-year period.
The package also includes a sale-lease back with a U.S. strategic partner for $4 million cash, with certain closing conditions, $0.9 million in short-term loans from and warrants issued to a syndicated group led by ESS board members and management, alongside participation from an investment fund managed by Yorkville Advisors Global, and a $0.8 million production tax credit transaction with an SB Energy affiliate.
“I am pleased to announce these transactions with our key partners coupled with a broader capital markets transaction that supports ongoing execution of our strategic pivot. This funding helps to strengthen our cash position to allow us to focus on the completion of key Energy Base contracting opportunities and to secure our broader capital raise,” said Kelly Goodman, Interim Chief Executive Officer.
This funding enables the company to build its technical momentum for its LDES product, Energy Base, which has a 12.2-hour duration at rated power and 17.8 hours at reduced power. The product is designed to be manufactured entirely in the U.S.
According to Mercom’s Q1 2025 Funding and M&A Report for Energy Storage, announced debt and public market financing for Energy Storage companies in Q1 2025 decreased 90% YoY, with $1.1 billion in 13 deals compared to $10.5 billion in six deals in Q1 2024.
In January, H2 Inc., a vanadium flow battery developer and manufacturer, raised $16 million in a recent bridge funding finalized in the second half of 2024. The bridge funding brings the company’s total funding to $77 million.
