Eos Energy Enterprises, Inc. (NASDAQ: EOSE), a prominent provider of safe, scalable, efficient, and sustainable zinc-based energy storage systems, has offered an update on the objectives outlined in the December 2023 Strategic Outlook, along with its preliminary first-quarter results.
The company continues to make strides towards achieving the goals set forth in the Strategic Outlook, particularly focusing on cost reduction initiatives, Project AMAZE implementation, and Eos Z3™ production.
Joe Mastrangelo, CEO of Eos, expressed, “The team continues to progress towards the milestones and goals presented during our December Strategic Outlook call, and is focused on delivering customer shipments, reducing costs for both Eos and our customers, and remaining on schedule to commission our first state-of-the-art manufacturing line in Turtle Creek during Q2.”
He added, “We continued to ship additional Z3 Cubes to customer locations this quarter and our cost reduction efforts are beginning to yield better gross margins compared to prior quarter results. We are excited by these recent achievements and remain motivated by the opportunity in front of us.”
On April 18, Sabic Specialties Business was honored with the prestigious Gold Edison Award for the highly electrically conductive compounds co-developed with Eos specifically for the Z3 battery module.
This collaboration, recognized by the globally esteemed Edison Awards™, highlights excellence in new product and service development, marketing, human-centered design, and innovation.
Over the past four years, Eos and SABIC have worked collaboratively to develop a solution utilizing one of SABIC’s new resin materials to replace titanium in prior Eos battery iterations.
This patented material and innovation represent one of many instances of cost reduction in Eos’s journey towards profitability.
The company has set an ambitious 80% cost reduction target from Z3 launch to scale, with direct materials accounting for 29 percentage points of that reduction.
Currently, Eos has achieved 55% of the direct material cost-out target, as its R&D, engineering, and supply chain teams focus on utilizing alternative materials, increasing energy density, and executing long-term supplier contracts.
Material innovation and establishing a secure, U.S.-based supply chain remain key priorities for lowering component costs and delivering higher-performing battery modules.
Eos is presently manufacturing the higher energy density, lower cost battery module discussed in December and the Q4 2023 earnings conference call.
