Eos Energy Enterprises Join Forces with SABIC Specialties to Produce a Specialty Light-Weight, Conductive Composite Thermoplastic for Eos Z3TM Battery
Eos Energy Enterprises, Inc. (NASDAQ: EOSE) has entered a multiyear supply agreement with SABIC Specialties’ US business unit to supply conductive composite thermoplastic for the Eos Z3 battery module. This agreement supports scaling Eos’s Z3 battery production and reducing battery module cost as part of Project AMAZETURTLE CREEK. The new material developed by SABIC weighs 80% less than prior product generations, allowing streamlined manufacturing, lower cost, and higher performance. This partnership is part of Eos's strategy to move towards profitability outlined in its Dec. 12 Strategic Outlook.
The multiyear supply agreement between Eos Energy Enterprises and SABIC Specialties is a strategic move aimed at enhancing Eos's production capabilities for the Z3 battery module. This partnership is significant as it not only aims to reduce the cost of the battery modules, which can improve Eos's competitive positioning in the energy storage market, but also emphasizes the shift towards lightweight and efficient materials in energy storage technology.
The use of conductive composite thermoplastic in place of titanium is a noteworthy advancement. It indicates a potential reduction in the manufacturing costs and an increase in the performance of Eos's products. For stakeholders, this could translate into better profit margins due to cost savings and potentially higher sales volumes driven by a more competitive product offering. In the long-term, such innovations could solidify Eos's market share in the growing renewable energy sector and contribute to the broader industry trend of cost reduction and performance enhancement in energy storage solutions.
From a financial perspective, the announcement of Eos's supply chain partnership with SABIC Specialties may have positive implications for Eos's stock valuation. Investors typically respond well to news that suggests operational scalability and cost efficiency, both of which are highlighted in this agreement. The focus on reducing the battery module cost is crucial, as it directly impacts the gross margin and, ultimately, the bottom line of the company.
Additionally, the timing of this agreement aligns with Eos's strategic outlook presented in December, reinforcing the company's commitment to achieving profitability. The market will likely monitor the impact of this supply agreement on Eos's financials in upcoming quarters, particularly gross margin improvements and any increase in market share resulting from enhanced product offerings. The reduction in weight and processing time could also lead to improved logistics and inventory turnover, further benefiting the company's operational efficiency.
The transition to a carbon-neutral future is a critical global objective and Eos's collaboration with SABIC Specialties represents a step forward in this direction. By focusing on sustainable materials such as conductive composite thermoplastics, Eos is contributing to the reduction of the environmental impact associated with battery production. The lightweight nature of the new material could also have implications for the energy required to transport and install these storage systems, potentially reducing the carbon footprint of the end-to-end supply chain.
Moreover, the shift from titanium to a thermoplastic alternative reflects a broader industry trend towards more sustainable and less resource-intensive manufacturing processes. This approach not only aligns with environmental sustainability goals but also resonates with increasingly eco-conscious consumers and investors, which could enhance Eos's brand reputation and investor appeal in the long-term.
02/01/2024 - 08:30 AM
Multiyear supply agreement supports scaling Eos’s Z3 battery production and reducing battery module cost as part of Project AMAZE
TURTLE CREEK, Pa., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ("Eos" or the “Company”), a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems, today entered a multiyear agreement with SABIC Specialties’ US business unit, SHPP US LLC, a Saudi Basic Industries Corporation (“SABIC”) affiliate, to supply conductive composite thermoplastic for the Eos Z3 battery module. Over the past four years, Eos and SABIC worked collaboratively to develop a solution using one of SABIC’s new resin materials to replace the titanium used in prior Eos battery iterations.
“Over the past six years, we’ve worked hard to take Eos from a research company to an operating company. Moving from the lab to small-scale production, and now to manufacturing at scale, requires partners who bring a mix of scale and expertise,” said Joe Mastrangelo, CEO of Eos. “Our entrepreneurial spirit allows us to find creative ways to drive down cost and improve battery performance. In working closely with SABIC Specialties, we specified an innovative new material that we believe can be produced at scale in the United States.”
Eos and SABIC Specialties began collaborating on this new light-weight material in 2019 and took several years of research and development to finalize a solution. The SABIC-developed and patented material supports detailed requirements provided by Eos’s application technology team. The Eos Z3 battery module weighs 80% less than prior product generations and allows streamlined manufacturing, while achieving lower cost and higher performance.
“We are driven to enable progress and a carbon neutral future together with our customers. Innovation in batteries is key for the energy transition,” said Darpan Parikh, Director, Sales and Supply Chain, Americas, SABIC Specialties. “Working together with Eos has been instrumental to help us push the boundaries of material science to improve their application’s performance and manufacturing process.”
“Scaling toward profitability is priority number one for us, and finding new materials and manufacturing processes to drive down cost moves us closer to this goal,” said Francis Richey, Senior Vice President of Research and Development at Eos. “On top of that cost benefit, replacing titanium with conductive composite thermoplastic also improves the overall performance of the battery, reduces weight and overall processing time.”
This is the second major supply chain partnership announced by Eos in 2024, as the Company continues on its path to profitability outlined in its Dec. 12 Strategic Outlook.
About Eos Energy Enterprises
About SABIC Specialties’ US Business Unit, SHPP US LLC
SABIC is a global diversified chemicals company, headquartered in Riyadh, Saudi Arabia. It manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high-performance plastics, agri-nutrients and metals.
SABIC recorded a net profit of SR 16.53 billion (US$ 4.41 billion ) in 2022. Sales revenues for 2022 totaled SR 198.47 billion (US$ 52.92 billion ). Total assets stood at SR 313 billion (US$ 83.46 billion ) at the end of 2022. Production in 2022 stood at 61 million metric tons.
The company has more than 31,000 employees worldwide and operates in around 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 9,948 patents and pending applications, and has significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South Asia and North Asia.
Forward Looking Statements
Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to raise financing in the future; our customer’s ability to secure project financing; the amount of final tax credits available to our customers or to Eos Energy Enterprises, Inc. pursuant to the Inflation Reduction Act; uncertainties around our ability to secure conditional commitment in a timely manner or at all, or final approval of a loan from the Department of Energy, the Loan Programs Office, or the timing of funding and the final size of any loan if approved; the possibility of a government shutdown while we remain in the due diligence phase with the U.S. Department of Energy Loan Programs Office or while we await notice of a decision regarding the issuance of a loan from the Department Energy Loan Programs Office; our ability to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; our ability to reduce costs; fluctuations in our revenue and operating results; competition from existing or new competitors; the failure to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to U.S. trade environment; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; and other risks and uncertainties. The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K, including those under the heading “Risk Factors” therein, and other factors identified in Eos’s prior and future SEC filings with the SEC, available at www.sec.gov .
Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
What is the multiyear supply agreement about?
The multiyear supply agreement is about supplying conductive composite thermoplastic for the Eos Z3 battery module.
Who is the partner in the multiyear supply agreement?
SABIC Specialties’ US business unit, SHPP US LLC, a Saudi Basic Industries Corporation (“SABIC”) affiliate, is the partner in the multiyear supply agreement.
What is the ticker symbol for Eos Energy Enterprises, Inc.?
The ticker symbol for Eos Energy Enterprises, Inc. is EOSE.
What is the significance of the new material developed by SABIC?
The new material developed by SABIC weighs 80% less than prior product generations, allowing streamlined manufacturing, lower cost, and higher performance.
What is the goal of Eos in forming this partnership?
The goal of Eos in forming this partnership is to move towards profitability as outlined in its Dec. 12 Strategic Outlook.
