Eos Energy buys Holtec out of battery manufacturing JV
The Eos Energy Block containerised solution. Source: Eos Energy Enterprises Inc
US zinc-based energy storage solutions provider Eos Energy Enterprises Inc (NASDAQ:EOSE) has taken full control of HI-POWER LLC, its manufacturing joint venture (JV) with Holtec International.
Eos Energy has bought the 51% stake it did not already have in the venture for up to USD 35 million (EUR 29m). The sum includes paying back Holtec’s initial USD-10-million capital contribution in the JV plus five annual installments of USD 5 million.
The transaction gives Eos full control over the supply chain, back-office functions, HI-POWER staff and day-to-day management. The manufacturing plant is located near Pittsburgh in Pennsylvania and in close proximity to over 80% of Eos’s suppliers.
HI-POWER was set up in August 2019 to expand production of Eos’ proprietary aqueous Znyth batteries, which are said to be superior to competing technologies, including lithium-ion, across seven impact categories, as determined last year by Boundless Impact Research & Analytics. HI-POWER has exclusive manufacturing rights in North America.
“This acquisition, combined with the supply chain expertise of our new Chief Operating Officer, Jody Markopoulos, will strategically position us to build out the manufacturing team and further scale our production,” said Eos CEO Joe Mastrangelo.
Holtec will continue to serve as a preferred sales partner.