Shares of Eos Energy Enterprises, Inc. ( EOSE ) , a provider of zinc-based long duration energy storage systems, are trading higher after the company announced a strategic investment of up to $315.5 million from an affiliate of Cerberus Capital Management LP.

The investment aims to support Eos’ growth plans amidst rising global energy demands and a shift towards energy independence and security.

Eos plans to leverage this investment to address the expected doubling of the long-duration energy storage market by 2030.

The company aims to meet the increasing demand fueled by data centers, AI advancements, and policies promoting lower carbon energy.

As of March-end, Eos had a $13.3 billion project pipeline and a $602.7 million order backlog. The funding will help scale operations and drive profitability.

Joe Mastrangelo, CEO of Eos said, “We are thrilled to partner with Cerberus at a pivotal moment in Eos’ history. This investment provides the critical funding needed to execute our profitability roadmap, while also providing our customers with the confidence that Eos can produce at scale.”

“Cerberus’ investment, combined with their deep operational and technical knowledge, enables us to expand our manufacturing capacity, streamline our supply chain, and strengthen our market position.”

This strategic investment includes a $210.5 million delayed draw term loan contingent on operational milestones and a $105 million revolver available at Cerberus’s discretion.

Eos will use part of the proceeds to retire its existing $100 million senior secured term loan, enhancing its balance sheet.

Eos CFO Nathan Kroeker noted that the investment supports the company's Project AMAZE, aiming to reduce product costs and improve system performance.

Price Action: EOSE shares are trading higher by 20.3% at $1.03 at last check Monday.

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