On October 15, 2025, ESS Tech announced the closing of a $40 million financing transaction with YA II PN, Ltd. The deal provides $30 million in immediate capital and an additional $10 million available under an at‑the‑market sales agreement, structured as a one‑year promissory note repayable in cash or from equity proceeds.
The financing strengthens ESS’s cash position and supports its strategic pivot to the U.S.-manufactured Energy Base platform. The company has already secured a 50 MWh New Horizon project with Salt River Project and is targeting additional long‑duration contracts in the digital infrastructure sector.
The transaction is a key milestone in ESS’s nine‑month sequence of leadership strengthening, customer wins, and balance‑sheet reinforcement. The $40 million infusion will fund continued production ramp‑up and help the company meet its 2026 delivery commitments while maintaining liquidity amid a “going concern” warning.
The promissory note’s repayment terms allow ESS to use cash or equity proceeds, providing flexibility as the company scales its Energy Base production. The financing aligns with the company’s goal of achieving a fully installed cost of $200/kWh by 2027‑2030 and supports its projected gross‑margin improvement.
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