Eos draws $87M from US Energy Department loan to scale Pennsylvania battery plant
What's the deal? Eos Energy Enterprises has received an $87 million first advance under the second tranche of its loan agreement with the US Department of Energy's Office of Energy Dominance FinancingDealroom has a profile for this one. Try Dealroom →. The Pittsburgh-based company makes zinc-based long-duration energy storage systems in the US. The advance reimburses 80% of eligible costs at its Thorn Hill manufacturing facility in Warrendale, Pennsylvania.
What's the endgame? Eos wants to expand domestic manufacturing capacity. Line 2 at Thorn Hill entered commercial production in June 2026 and is ramping toward roughly 2 GWh of annual capacity. Once the company relocates line 1 to the site, subject to lender approvals, it expects Thorn Hill to support about 4 GWh across two lines.
Why now? The advance returns capital already spent on Line 2 to the balance sheet. "This advance reimburses a significant portion of the investment we have already made in Line 2 and returns that capital to the balance sheet, giving us more room to invest in the business while maintaining a disciplined approach to growth," said chief financial officer Alessandro Lagi.
By the numbers: With the latest draw, Eos has now pulled approximately $178 million from its DOE facility since 2024. The company expects to create jobs across four shifts to staff Line 2 in western Pennsylvania.
What could go wrong? The remaining capacity expansion hinges on the planned relocation of line 1 and future advances under the DOE-guaranteed facility, both of which require lender or governmental approvals. Line 2 is still ramping toward full production.
The signal: Government-backed financing is helping build US-based supply chains for grid-scale battery storage. Eos is positioning its non-flammable Znyth technology as a domestic alternative to conventional systems for utility-scale and industrial storage running four to 16-plus hours.
Read more: benzinga.com
Image credit: Generated with Gemini
