Eos Energy Enterprises (NASDAQ:EOSE) shares have surged by nearly 32% at the time of writing today. This comes after the energy storage solutions provider announced a $500 million expansion to set up 8 GWh of clean energy storage production capacity.
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The project, named AMAZE, is part of Eos’ strategy to satiate the increasing demand for long-duration energy storage. The company has already secured a conditional commitment for a loan guarantee of up to $398.6 million from the DOE LPO (Department of Energy’s Loan Programs Office). Importantly, if this loan gets finalized, it would cover 80% of the planned expansion.
The facility expansion would mean a higher production of Eos’ zinc-based energy storage systems. Recently, Eos partnered with ACRO Automation Systems to design, develop, and implement up to four high-output manufacturing lines.
The company anticipates reaching the 8 GWh annual production storage capacity by 2026. The move would also take its headcount to nearly 1,000 from the current 300.
Overall, the Street has a consensus price target of $3.67 on Eos, along with a Moderate Buy consensus rating. Shares of the company have now surged nearly 58% over the past year.
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