Eos Energy Enterprises Inc (NASDAQ:EOSE) shares are surging 55% in premarket trade after it launched Project AMAZE, American Made Zinc Energy, a $500 million planned expansion to build 8 GWh of clean energy storage production capacity.
The Department of Energy’s (DOE) Loan Programs Office (LPO) has issued an up to $398.6 million conditional commitment for a loan guarantee, which, if the loan is finalized, is expected to fund 80% of the expansion in Pennsylvania.
Project AMAZE will support Eos’ aim to address increased long-duration energy storage demand driven by the Inflation Reduction Act (IRA) implementation, using its Eos Z3 energy storage system.
The project is designed to scale annual production to 8 GWh storage capacity by 2026 to meet the demand for Long Duration Energy Storage (LDES).
In 2018, Eos brought its production and supply chain back to the U.S. from China, and the expanded facility would further build on its investment in American manufacturing.
The company’s American workforce, over 300 strong, is expected to grow to nearly 1,000 green-collar careers upon the successful completion of Project AMAZE in 2026.
Project AMAZE would expand the U.S. supply chain, which Eos believes features domestic sourcing sufficient to qualify for the Domestic Content Bonus awarded by the IRA’s Investment Tax Credit (ITC). Eos aims to move to 100% U.S.-sourced material by 2026.
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Price Action: EOSE shares are trading higher by 60.6% at $5.22 in premarket on the last check Friday.