ESS Tech Secures $15M Funding at a Premium Amid Market Volatility

WILSONVILLE, OR – January 30, 2026 – ESS Tech, Inc. (NYSE: GWH), a manufacturer of long-duration energy storage systems, today announced the successful closing of a $15 million registered direct offering, a move that provides a crucial capital infusion for the company. The deal, struck with institutional investors, was notably priced at $1.75 per share, a premium to the market's closing price on January 28, providing a much-needed vote of confidence from the financial community.

The offering consisted of 8,571,428 shares of common stock and pre-funded warrants. After placement agent fees and other expenses, the company expects to receive net proceeds of approximately $13.5 million. According to the company, these funds, combined with existing cash, are earmarked for general corporate purposes and working capital to fuel its ongoing operations.

A Vote of Confidence in a Volatile Market

The timing and terms of the offering are particularly significant. The premium pricing comes against a backdrop of a difficult year for ESS Tech's stock, which has fallen nearly 69% over the past twelve months and trades significantly below its 52-week high. On January 29, the stock was trading around $1.68 before closing at the $1.75 offering price on January 30. This suggests investors were willing to pay more than the recent market value, indicating a strong belief in the company's long-term potential and the intrinsic value of its technology.

This investor optimism persists despite the company's challenging financial metrics. While preliminary unaudited results for 2025 show an estimated loss from operations of $55.0 million, this represents a significant improvement of $34.8 million compared to the prior year. However, the company also anticipates a revenue decrease to approximately $1.6 million for 2025. This complex financial picture, which includes what some analysts describe as a rapid cash burn, is balanced by the company's efforts to manage its debt, having repaid about 81% of a $30 million promissory note.

Wall Street analysts reflect this cautious optimism. The current consensus rating for GWH is a "Hold," but the average price target sits at $2.83, suggesting a potential upside of over 60% from the offering price. It appears the institutional investors in this offering share that forward-looking perspective, betting on the company's future execution rather than its recent stock performance.

Fueling the Iron Flow Revolution

The capital raised is critical for advancing ESS Tech's core mission: accelerating decarbonization through its proprietary iron flow battery technology. Unlike many battery technologies that rely on scarce or volatile materials like lithium and cobalt, ESS systems utilize iron, salt, and water—some of the most abundant and inexpensive materials on Earth. This makes the technology inherently safer, more sustainable, and potentially more cost-effective for long-duration storage, a critical need for grid stability.

Long-duration energy storage (LDES) is designed to store and discharge energy for extended periods, typically 4 to 12 hours or more. This capability is essential for integrating intermittent renewable energy sources like solar and wind into the power grid. When the sun isn't shining or the wind isn't blowing, LDES systems can dispatch stored clean energy, ensuring reliability and reducing reliance on fossil fuel power plants. The new funding will bolster ESS Tech's ability to scale production and deploy these systems for commercial and utility-scale clients, directly supporting the global energy transition.

Riding the Wave of Global Energy Demand

ESS Tech's capital raise comes as the LDES market enters a period of accelerated growth. The demand is driven by two powerful, converging trends: the massive build-out of renewable energy generation and the electrification of everything from transport to industry. In Europe, the rapid deployment of solar PV has created market volatility that LDES can help stabilize. In North America, LDES is projected to constitute half of all battery demand, spurred by a surge in power-hungry data centers and supportive government policies like the clean energy investment tax credit (ITC).

By securing this funding, ESS Tech is better positioned to compete in this burgeoning market. The company is not just selling a product but a solution to the grid's most pressing challenges. Its environmentally benign technology provides a compelling alternative to other storage methods and aligns with the growing emphasis on environmental, social, and governance (ESG) criteria among investors and customers alike.

A Period of Strategic Transition

This financial milestone coincides with a significant leadership transition at the company, suggesting a strategic realignment for its next phase of growth. Drew Buckley took the helm as the new Chief Executive Officer at the start of the year, while Kate Suhadolnik was recently named the permanent Chief Financial Officer after serving in an interim capacity. This new leadership team is now tasked with converting the fresh capital into tangible progress.

A key example of this progress is a recently awarded $9.9 million contract in partnership with the U.S. Air Force Research Laboratory. The project will involve deploying an ESS energy storage system at the Clear Space Force Station in Alaska, a project that could eventually scale to 27 MWh of iron flow battery systems. This contract provides not only revenue but also crucial validation of the technology's performance and reliability in a demanding, mission-critical environment. The latest funding will be instrumental in ensuring ESS Tech can execute on such large-scale projects and capitalize on the growing pipeline of opportunities in the long-duration energy storage sector.