ESS Tech, Inc. (“ESS” or the “Company”) a leading manufacturer of iron flow long-duration energy storage (LDES) systems for commercial- and utility-scale applications, provided a business update and the continued execution of its strategic plan focused around the Energy Base product. Previously, ESS announced the potential need to take certain workforce actions in the event it was unable to raise capital to enable the Company to avoid or postpone a shutdown. ESS subsequently received sufficient capital not anticipated in the ordinary course of business to continue operations at its Wilsonville facility in the near term, though it will still undertake actions to judiciously manage its operating expenses. “I am pleased to report this important development and the continuation of our strategic pivot and delivery of a scalable Energy Base solution manufactured here in the United States to support unprecedented growth in energy demand and the critical need for grid reliability and resiliency,” said Kelly Goodman, Interim CEO of ESS.
ESS also recently executed several actions to further implement this plan and deepen collaboration with key partners. The Company closed orders for the sale of four Energy Warehouses as part of its ongoing dual strategy to move existing inventory and pivot to a focused Energy Base product offering. ESS intends to sell the associated Advanced Manufacturing Production Tax Credits (PTC) from the equipment sales this quarter. The Company is continuing discussions with potential capital providers and exploring all available financing options to support its repositioned business plan, including to close key customer contracts for its proprietary 10+ hour Energy Base product.
