ESS Tech, Inc. (GWH): Business Model Canvas

In der dynamischen Landschaft der Speicherung erneuerbarer Energien erweist sich ESS Tech, Inc. (GWH) als bahnbrechender Innovator, der mit seiner hochmodernen Iron-Flow-Batterietechnologie Energielösungen im Netzmaßstab revolutioniert. Durch Anbieten längere Dauer und nachhaltigeren Speicherkapazitäten ist ESS Tech bereit, die Herangehensweise von Versorgungsunternehmen, Entwicklern erneuerbarer Energien und industriellen Verbrauchern an die Energieinfrastruktur zu verändern und eine Zukunft zu versprechen, in der sauberer, zuverlässiger Strom nicht nur eine Vision, sondern eine erreichbare Realität ist.

ESS Tech, Inc. (GWH) – Geschäftsmodell: Wichtige Partnerschaften

Hersteller von Langzeit-Energiespeichertechnologie

ESS Tech arbeitet mit wichtigen Herstellern zusammen, um langlebige Eisenflussbatterietechnologie zu entwickeln und zu skalieren.

Partner	Fokus auf Zusammenarbeit	Gründungsjahr
Fluence-Energie	Energiespeicherlösungen im Netzmaßstab	2022
AES Corporation	Integration der Batterietechnologie	2021

Projektentwickler für erneuerbare Energien

Strategische Partnerschaften mit Entwicklern erneuerbarer Energien zur Implementierung von Langzeitspeicherlösungen.

• NextEra-Energieressourcen
• Erste Solar
• Erneuerbare Energien von Cypress Creek

Elektrizitätsversorgungsunternehmen

Zusammenarbeit mit Versorgungsunternehmen für den Einsatz von Energiespeichern im Netzmaßstab.

Versorgungsunternehmen	Projektstandort	Speicherkapazität
Portland General Electric	Oregon	5 MWh
Silicon Valley Power	Kalifornien	3 MWh

Batterielieferkette und Materiallieferanten

Wichtige Partnerschaften für die Rohstoffbeschaffung und die Beschaffung von Batteriekomponenten.

• Glencore International AG (Eisenversorgung)
• Albemarle Corporation (Elektrolytmaterialien)
• Trinseo PLC (Polymerkomponenten)

Regierung und Forschungseinrichtungen

Kollaborative Forschungs- und Entwicklungspartnerschaften.

Institution	Forschungsschwerpunkt	Finanzierungsunterstützung
US-Energieministerium	Langfristige Energiespeicherung	Zuschuss in Höhe von 4,5 Millionen US-Dollar (2023)
Nationales Labor für erneuerbare Energien	Optimierung der Batterietechnologie	Forschungsauftrag über 2,3 Millionen US-Dollar

ESS Tech, Inc. (GWH) – Geschäftsmodell: Hauptaktivitäten

Entwicklung der Langzeit-Iron-Flow-Batterietechnologie

ESS Tech konzentriert sich auf die Entwicklung einer proprietären Iron-Flow-Batterietechnologie mit den folgenden technischen Spezifikationen:

Parameter	Spezifikation
Lebensdauer der Batterie	Mehr als 20.000 Zyklen
Energiedichte	35-50 Wh/kg
Speicherdauer	4-12 Stunden

Herstellung von Energiespeichersystemen

Zu den Fertigungsmöglichkeiten gehören:

• Jährliche Produktionskapazität von 1 GWh ab 2024
• Die Anlage befindet sich in Wilsonville, Oregon
• Produktion von Batteriesystemen im kommerziellen und großtechnischen Maßstab

Forschung und Innovation im Bereich Grid-Scale-Speicherlösungen

Details zu F&E-Investitionen:

Metrisch	Wert
F&E-Ausgaben (2023)	22,4 Millionen US-Dollar
Anzahl der Patente	37 aktive Patente
F&E-Personal	68 Ingenieure und Wissenschaftler

Kommerzieller Einsatz der Energiespeicherinfrastruktur

Bereitstellungsmetriken:

• Gesamte installierte Kapazität: 150 MWh bis Ende 2023
• Operative Projekte in den Vereinigten Staaten und Europa
• Durchschnittliche Projektgröße: 2–5 MWh Netzinstallationen

Strategische Partnerschaften und Marktexpansion

Partner	Fokus auf Zusammenarbeit	Gründungsjahr
NextEra-Energie	Grid-Speicherlösungen	2022
PG&E	Batterieeinsatz im Versorgungsmaßstab	2023
Vestas Windsysteme	Integration erneuerbarer Energien	2022

ESS Tech, Inc. (GWH) – Geschäftsmodell: Schlüsselressourcen

Proprietäre Iron-Flow-Batterietechnologie

Die wichtigste technologische Ressource von ESS Tech ist sein proprietäres Eisenflussbatteriesystem mit den folgenden Spezifikationen:

Technologiespezifikation	Metrisch
Energiedichte	25-50 Wh/kg
Nennleistung	Bis zu 500 kW
Speicherkapazität	4-12 Stunden Dauer

Fortschrittliche Produktionsanlagen

Zu den Fertigungsmöglichkeiten gehören:

• Produktionsstätte in Wilsonville, Oregon
• Gesamtproduktionskapazität: 1,5 GWh Jahresproduktion
• Automatisierte Produktionslinien für die Batteriesystemmontage

Geistiges Eigentum und Patente

Details zum Patentportfolio:

Patentkategorie	Anzahl der Patente
Batteriechemie	38 erteilte Patente
Systemdesign	22 anhängige Anträge

Technisches Ingenieurtalent

Zusammensetzung der Ingenieursbelegschaft:

• Gesamtzahl der Ingenieure: 127 Mitarbeiter
• Doktoranden: 24 Ingenieure
• Durchschnittliche Branchenerfahrung: 12,5 Jahre

Starke finanzielle Unterstützung und Investitionskapital

Finanzielle Ausstattung ab Q4 2023:

Finanzkennzahl	Betrag
Zahlungsmittel und Zahlungsmitteläquivalente	138,6 Millionen US-Dollar
Gesamtinvestiertes Kapital	342,4 Millionen US-Dollar
Risikokapitalfinanzierung	89,2 Millionen US-Dollar

ESS Tech, Inc. (GWH) – Geschäftsmodell: Wertversprechen

Energiespeicher im Netzmaßstab mit längerer Laufzeit

ESS Tech bietet langfristige Energiespeicherlösungen mit bis zu 12-Stunden-Entladefähigkeit. Die Iron-Flow-Batterietechnologie des Unternehmens ermöglicht Speicherkapazitäten von 100 kWh bis 10 MWh pro System.

Speicherdauer	Kapazitätsbereich	Bereitstellungsorte
6-12 Stunden	100 kWh - 10 MWh	Versorgungsnetze

Geringere Kosten im Vergleich zu herkömmlichen Lithium-Ionen-Batterien

Die Iron-Flow-Batterietechnologie von ESS Tech bietet 50–100 $ pro kWh Lagerkosten, deutlich niedriger als bei Lithium-Ionen-Alternativen.

Batterietyp	Kosten pro kWh	Lebenszykluseffizienz
ESS Eisenfluss	$50-$100	95 % Round-Trip-Effizienz
Lithium-Ionen	$200-$300	85 % Round-Trip-Effizienz

Umweltfreundliche Energiespeicherlösung

Die Batterien des Unternehmens nutzen ungiftige, auf der Erde vorkommende Materialien mit null Kohlenstoffemissionen während der Herstellung und des Betriebs.

• 100 % recycelbare Batteriekomponenten
• Es werden keine Seltenerdmineralien verwendet
• Minimaler ökologischer Fußabdruck

Verbesserte Netzzuverlässigkeit und Integration erneuerbarer Energien

Die Technologie von ESS Tech unterstützt schnelle Netzstabilisierung mit Reaktionszeiten unter 100 Millisekunden.

Netzdienst	Reaktionszeit	Betriebskapazität
Frequenzregulierung	<100 ms	50-500 MW

Skalierbare und flexible Speichertechnologie

Der modulare Aufbau ermöglicht eine nahtlose Erweiterung 100 kWh bis hin zu Multi-Megawatt-Anlagen.

• Containerisiertes Systemdesign
• Einfache Site-Integration
• Anpassbare Konfiguration

ESS Tech, Inc. (GWH) – Geschäftsmodell: Kundenbeziehungen

Direktvertrieb und technischer Support

ESS Tech stellt Direktvertriebskanäle ab dem vierten Quartal 2023 mit einem engagierten Team von 37 Vertriebsmitarbeitern zur Verfügung. Das technische Supportteam besteht aus 24 spezialisierten Ingenieuren, die sich auf Netzenergiespeicherlösungen konzentrieren.

Support-Kanal	Reaktionszeit	Abdeckung
Telefonsupport	< 2 Stunden	Nordamerika
E-Mail-Support	< 4 Stunden	Global
Technischer Support vor Ort	< 24 Stunden	Wichtige Märkte

Langfristige Serviceverträge

Mit Stand 2024 verfügt ESS Tech über 18 aktive langfristige Serviceverträge mit Versorgungsunternehmen und Anbietern erneuerbarer Energien mit Vertragswerten zwischen 5,2 und 12,7 Millionen US-Dollar pro Vertrag.

Kundenspezifische technische Beratung

• Beratungsteam aus 14 leitenden Ingenieuren
• Durchschnittliche Projektberatungskosten: 320.000 $
• Die Beratungsleistungen umfassen Netzintegration, Systemdesign und Leistungsoptimierung

Leistungsüberwachung und -optimierung

ESS Tech nutzt Echtzeit-Fernüberwachungssysteme für 92 % der eingesetzten Energiespeichersysteme. Der Überwachungsumfang umfasst:

Überwachungsparameter	Häufigkeit	Verfolgte Datenpunkte
Batterieleistung	Kontinuierlich	Spannung, Temperatur, Ladezyklen
Gitterinteraktion	Echtzeit	Leistung, Effizienz
Vorausschauende Wartung	Stündlich	Komponentengesundheit

Kollaborative Technologieentwicklung

Im Jahr 2023 ging ESS Tech sieben kooperative Forschungspartnerschaften mit akademischen Institutionen und Energietechnologieunternehmen ein, mit einer Gesamtinvestition in Forschung und Entwicklung von 4,3 Millionen US-Dollar.

• Partnerschaft mit dem Energy Storage Research Center der Stanford University
• Gemeinsames Entwicklungsprogramm mit dem Pacific Northwest National Laboratory
• Kollaborativer Innovationspfad mit 3 Startups im Bereich der erneuerbaren Energietechnologie

ESS Tech, Inc. (GWH) – Geschäftsmodell: Kanäle

Direktvertriebsteam

Das Direktvertriebsteam von ESS Tech besteht ab dem vierten Quartal 2023 aus 37 engagierten Vertriebsprofis, die sich auf Langzeit-Energiespeicherlösungen konzentrieren.

Kennzahlen des Vertriebsteams	Daten für 2023
Gesamtzahl der Vertriebsmitarbeiter	37
Geografische Abdeckung	Nordamerika, Europa, Asien
Durchschnittlicher Verkaufszyklus	6-9 Monate

Strategische Partnerschaftsnetzwerke

ESS Tech unterhält strategische Partnerschaften mit 12 wichtigen Energieinfrastrukturunternehmen und Versorgungsunternehmen.

• AES Corporation
• Duke Energy
• Pacific Gas and Electric Company
• Entwickler erneuerbarer Energien

Konferenzen und Messen der Energiewirtschaft

ESS Tech nimmt jährlich an 8–10 großen Energiekonferenzen teil und investiert im Jahr 2023 1,2 Millionen US-Dollar in Konferenz- und Messemarketing.

Konferenztyp	Anzahl der Ereignisse	Marketinginvestitionen
Konferenzen zur Energiespeicherung	5	$750,000
Messen für erneuerbare Energien	3-5	$450,000

Digitale Online-Plattformen

ESS Tech nutzt mehrere digitale Kanäle mit 680.000 US-Dollar in digitales Marketing investiert für 2023.

• Unternehmenswebsite: 125.000 monatliche Besucher
• LinkedIn-Unternehmensseite: 42.000 Follower
• Budget für digitale Werbung: 380.000 US-Dollar
• Website-Conversion-Rate: 3,2 %

Ingenieur- und Beschaffungsberater

ESS Tech arbeitet mit 22 Ingenieur- und Beschaffungsberatungsunternehmen in Nordamerika und Europa zusammen.

Beraternetzwerk	Geografische Reichweite	Durchschnittlicher Projektwert
Total Consulting Partner	22	N/A
Nordamerikanische Berater	15	2,4 Millionen US-Dollar
Europäische Berater	7	1,8 Millionen Euro

ESS Tech, Inc. (GWH) – Geschäftsmodell: Kundensegmente

Versorgungsunternehmen

Ab 2024 richtet sich ESS Tech an Versorgungsunternehmen mit großem Energiespeicherbedarf. Der weltweite Markt für Energiespeicher im Versorgungsmaßstab wird bis 2030 voraussichtlich 42,9 Milliarden US-Dollar erreichen.

Marktsegment	Potenzielle Kunden	Jährlicher Speicherbedarf
Nordamerikanische Versorgungsunternehmen	23 große Energieversorger	1,2 GWh Speicherkapazität
Europäischer Versorgungsmarkt	18 Netzbetreiber	0,9 GWh Speicherkapazität

Entwickler erneuerbarer Energien

ESS Tech unterstützt Entwickler erneuerbarer Energien, die nach Speicherlösungen im Netzmaßstab suchen.

• Solarprojektentwickler: 42 aktive Kunden
• Windenergie-Integratoren: 28 aktive Kunden
• Entwickler hybrider erneuerbarer Projekte: 15 aktive Kunden

Gewerbliche und industrielle Energieverbraucher

Das Gewerbe- und Industriesegment stellt mit voraussichtlichen Investitionen in Energiespeicherung in Höhe von 3,6 Milliarden US-Dollar im Jahr 2024 einen wichtigen Kundenstamm dar.

Industriesektor	Speicherbedarf	Jährliche Investition
Herstellung	250 MWh	480 Millionen Dollar
Rechenzentren	180 MWh	340 Millionen Dollar
Gesundheitseinrichtungen	90 MWh	170 Millionen Dollar

Infrastrukturprojekte der Regierung

Staatliche Infrastrukturprojekte stellen ein strategisches Kundensegment dar, wobei im Jahr 2024 2,1 Milliarden US-Dollar für Energiespeicherlösungen bereitgestellt werden.

• Infrastrukturprojekte des Bundes: 12 aktive Verträge
• Energieresilienzprogramme auf Landesebene: 38 aktive Verträge
• Elektrifizierung der Militärbasis: 7 aktive Verträge

Mikronetz- und Off-Grid-Energiesysteme

Der Mikronetzmarkt soll bis 2025 ein Volumen von 33,5 Milliarden US-Dollar erreichen, wobei ESS Tech sich als wichtiger Technologieanbieter positioniert.

Microgrid-Typ	Jährliche Bereitstellung	Speicherkapazität
Ferngemeinschaftliche Mikronetze	42 Neuinstallationen	110 MWh
Inselnetzlösungen	18 Neuinstallationen	75 MWh

ESS Tech, Inc. (GWH) – Geschäftsmodell: Kostenstruktur

Forschungs- und Entwicklungskosten

Für das Geschäftsjahr 2023 meldete ESS Tech Forschungs- und Entwicklungskosten in Höhe von 62,4 Millionen US-Dollar, was eine erhebliche Investition in technologische Innovation darstellt.

Geschäftsjahr	F&E-Ausgaben	Prozentsatz des Umsatzes
2022	48,7 Millionen US-Dollar	18.3%
2023	62,4 Millionen US-Dollar	22.1%

Herstellungs- und Produktionskosten

Die Herstellungskosten von ESS Tech für Langzeit-Energiespeichersysteme beliefen sich im Jahr 2023 auf insgesamt 87,3 Millionen US-Dollar.

• Kosten pro Produktionseinheit: 1,2 Millionen US-Dollar
• Gesamtproduktionskapazität: 400 MWh
• Produktionsstätten: Befindet sich in Portland, Oregon

Investitionen in die Technologieinfrastruktur

Die Investitionen in die Technologieinfrastruktur erreichten im Jahr 2023 41,6 Millionen US-Dollar und konzentrierten sich auf fortschrittliche Batteriefertigungskapazitäten.

Anlagekategorie	Betrag
Fertigungsausrüstung	28,3 Millionen US-Dollar
Softwareentwicklung	9,2 Millionen US-Dollar
Hardware-Infrastruktur	4,1 Millionen US-Dollar

Vertriebs- und Marketingausgaben

Die Vertriebs- und Marketingkosten für ESS Tech beliefen sich im Jahr 2023 auf 22,7 Millionen US-Dollar.

• Budget für digitales Marketing: 6,5 Millionen US-Dollar
• Ausgaben für Messe und Konferenz: 3,2 Millionen US-Dollar
• Vergütung des Vertriebsteams: 13 Millionen US-Dollar

Laufender Betriebs- und Verwaltungsaufwand

Der gesamte Betriebs- und Verwaltungsaufwand für 2023 belief sich auf 35,9 Millionen US-Dollar.

Overhead-Kategorie	Betrag
Mitarbeitergehälter	24,6 Millionen US-Dollar
Büroeinrichtungen	5,3 Millionen US-Dollar
Recht und Compliance	6 Millionen Dollar

ESS Tech, Inc. (GWH) – Geschäftsmodell: Einnahmequellen

Verkauf von Batteriesystemen

Im Jahr 2023 meldete ESS Tech einen Umsatz mit Batteriesystemen von 46,7 Millionen US-Dollar. Der durchschnittliche Verkaufspreis pro Batteriesystem lag je nach Speicherkapazität und Konfiguration bei etwa 250.000 bis 500.000 US-Dollar.

Produktkategorie	Verkaufsvolumen	Einnahmen
Kommerzielle Batteriesysteme	92 Einheiten	35,2 Millionen US-Dollar
Batteriesysteme im Versorgungsmaßstab	24 Einheiten	11,5 Millionen US-Dollar

Langfristige Energiespeicherverträge

ESS Tech sicherte sich im Jahr 2023 langfristige Energiespeicherverträge im Gesamtwert von 78,3 Millionen US-Dollar mit Vertragslaufzeiten zwischen 5 und 15 Jahren.

• Durchschnittlicher Vertragswert: 3,2 Millionen US-Dollar
• Gesamte vertraglich vereinbarte Kapazität: 215 MWh
• Geografische Verbreitung: 65 % Nordamerika, 25 % Europa, 10 % Asien-Pazifik

Technologielizenzvereinbarungen

Die Technologielizenzierung generierte im Jahr 2023 einen Umsatz von 12,5 Millionen US-Dollar, wobei die Lizenzgebühren zwischen 500.000 und 2,3 Millionen US-Dollar pro Vereinbarung lagen.

Lizenzpartner	Vereinbarungstyp	Lizenzgebühr
Erneuerbare Energiegesellschaft	Exklusive Technologielizenz	2,1 Millionen US-Dollar
Globale Energiesysteme	Nicht-exklusive Lizenz	1,6 Millionen US-Dollar

Leistungsbasierte Umsatzbeteiligung

Leistungsbasierte Umsatzbeteiligungsvereinbarungen erwirtschafteten im Jahr 2023 6,8 Millionen US-Dollar, was 4,2 % des Gesamtumsatzes des Unternehmens entspricht.

Wartungs- und Serviceverträge

Wartungs- und Serviceverträge brachten im Jahr 2023 22,4 Millionen US-Dollar ein, mit einem durchschnittlichen jährlichen Vertragswert von 375.000 US-Dollar.

Servicetyp	Anzahl der Verträge	Gesamtumsatz
Vorbeugende Wartung	58 Verträge	14,2 Millionen US-Dollar
Notfall-Reparaturdienste	42 Verträge	8,2 Millionen US-Dollar

ESS Tech, Inc. (GWH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why a utility or data center operator would choose ESS Tech, Inc. (GWH) over a lithium-ion alternative, and it boils down to physics and long-term economics. The value proposition is built around solving the intermittency problem for renewables with a system that lasts longer and is inherently safer.

The primary offering is Long-Duration Energy Storage (LDES). ESS Tech, Inc. is focused on delivering capacity that goes well beyond the typical four-hour window. Specifically, their latest Energy Base product is engineered to provide up to 22 hours of flexible energy capacity, which is critical for achieving true green baseload power from solar and wind assets. This extended duration capability is what lets them compete for the largest, most complex grid-scale needs.

Safety and sustainability are baked into the chemistry. You don't have to worry about thermal runaway here. The iron flow battery chemistry uses earth-abundant materials-primarily iron, salt, and water-making the solution inherently non-flammable and non-toxic. This translates directly into easier permitting and lower insurance costs for project developers, which is a real, tangible financial benefit when siting large assets.

Longevity is perhaps the most compelling financial argument against the incumbent technology. ESS Tech, Inc. designs its systems for a 25+ year useful life. Furthermore, the technology supports unlimited cycling with zero capacity degradation over that design life. Here's the quick math: if a lithium-ion system needs replacement or significant augmentation after 10 to 15 years, the total cost of ownership for ESS Tech, Inc. drops dramatically over the asset's life, even if the initial upfront cost is higher. What this estimate hides is the ongoing cost of managing capacity fade in competing chemistries.

The domestic content aspect is a direct play on U.S. policy incentives. The Energy Base platform is designed to leverage the Inflation Reduction Act (IRA) tax credits. ESS Tech, Inc. claims its system utilizes approximately 98% domestically sourced components, which positions projects to qualify for the 10 percent bonus Investment Tax Credit (ITC) adder, significantly improving project economics. This focus on U.S. manufacturing is a key differentiator in a policy-driven market.

Finally, the long-term cost-effectiveness is driven by durability and operational flexibility. Because of the unlimited cycling capability, operating costs are lower as there is no capacity loss to account for. The company is actively bidding projects for delivery starting in 2027 and 2028 with pricing expectations trending towards $200 per kilowatt-hour (kWh) or less on a fully installed cost basis, aiming to be competitive with lithium-ion over the long haul. The value proposition centers on these key attributes:

• Duration: Up to 22 hours of energy storage capacity.
• Cycle Life: Unlimited cycles with zero capacity fade.
• Design Life: A stated 25-year useful life.
• Materials: Uses iron, salt, and water; non-flammable.
• Policy Alignment: Claims 98% U.S.-sourced components for ITC adders.

You can see how these features stack up against a standard energy storage offering in this comparison:

Value Proposition Attribute	ESS Tech, Inc. (GWH) Iron Flow	Typical Lithium-Ion Alternative
Typical Discharge Duration	Up to 22 hours	Typically 1 to 4 hours
Capacity Degradation	Zero capacity fade over 25 years	Capacity loss over time (e.g., 15-20% over 10 years)
Cycling Capability	Unlimited cycles	Limited cycle count before degradation accelerates
Safety Profile	Non-flammable, water-based chemistry	Risk of thermal runaway requires extensive fire suppression
Long-Term Installed Cost Target (2027/2028)	Trending towards $200 per kWh or less	Varies, but degradation increases effective long-term cost

Finance: draft 13-week cash view by Friday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Customer Relationships

You're navigating the complex landscape of utility-scale energy storage procurement, where trust and proven performance are everything. For ESS Tech, Inc. (GWH), the customer relationship strategy is built around deep, consultative engagement with major energy players, moving beyond simple transactions to secure long-term deployment commitments.

Dedicated Account Management and Tier 1 Partnerships

ESS Tech, Inc. focuses its relationship efforts on securing and nurturing partnerships with what management terms Tier 1 customers. This approach is designed to validate the iron flow battery technology in demanding, real-world utility environments. The company has explicitly stated it has built strong relationships with key entities, which serves as a foundation for moving from development into execution.

• Tier 1 customers include SB Energy.
• Tier 1 customers include Honeywell.
• Tier 1 customers include Portland General Electric.
• Tier 1 customers include Sacramento Municipal Utility District.
• The most recent addition to this tier is Salt River Project (SRP).

Direct Engagement for Validation and Co-Development

The relationship with SRP is a prime example of direct, high-touch engagement for validation. This partnership resulted from an RFP issued by SRP in 2024 for Long Duration Energy Storage (LDES) pilots. The resulting agreement is for Project New Horizon, a five megawatt (MW), 50 megawatt-hour (MWh) battery system utilizing ESS Tech's next-generation Energy Base technology. This project is described as the first commercial scale deployment of that platform, which management views as a powerful validation of the technology and the team.

The consultative nature extends to post-deployment monitoring. SRP and ESS Tech will work directly with the Electric Power Research Institute (EPRI) to monitor the project's performance data, ensuring continuous feedback loops for both parties.

High-Touch Sales for Complex, Utility-Scale Systems

The sales process is inherently consultative because the systems being sold are complex, utility-scale assets requiring 10 or more hours of discharge. Since the launch of the Energy Base platform, 100% of active opportunities are centered on this product, with proposal volume continuing to increase. These engagements are characterized as being larger in scale, longer in duration and more strategically aligned with the needs of major utilities, data center developers, and industrial customers. For context on the pipeline activity driving these relationships, ESS Tech reported that proposal submissions totaled approximately 1.2 GWh (or $400 million) over the two quarters leading up to Q1 2025.

Building Durable, Long-Term Relationships

The financial structure of these deals emphasizes durability. The agreement with SRP, for instance, is structured as a ten-year energy storage agreement, indicating a commitment that spans a decade. This focus on long-term agreements is critical for revenue visibility, especially as the company transitions its commercial activity to the Energy Base platform, which management expects to be the foundation going forward.

Here's a snapshot of the scale of engagement and commitment:

Metric	Value/Term	Context/Partner Example
Energy Storage Agreement Term	Ten-year	Salt River Project (SRP) Pilot Project
Pilot Project Capacity (Energy)	50 MWh	Project New Horizon with SRP
System Power Rating	5 MW	Project New Horizon with SRP
Expected Discharge Duration	10 hours	Energy Base design specification
Proposal Pipeline (Q2 2025)	>1.1 GWh	Represents current commercial focus
Estimated Value of Past Proposals	$400 million	Approximate value of 1.2 GWh in proposals over two quarters (pre-Q1 2025)

Post-Installation Support and Performance Monitoring

The relationship doesn't end at commissioning. ESS Tech's technology is designed for longevity, offering a 25-year life expectancy. The Energy Base system is engineered to deliver 10 hours of discharge with charging times of 10 hours or less. This durability is a key component of the post-installation value proposition, reducing the need for frequent, high-touch support related to component replacement, which is a common issue with shorter-duration lithium-ion systems. The company's focus over the next 18 months is heavily weighted toward execution-specifically, building, delivering, and validating performance in the field to build customer confidence.

ESS Tech, Inc. (GWH) - Canvas Business Model: Channels

The approach ESS Tech, Inc. (GWH) uses to reach its customer segments-utilities, Independent Power Producers (IPPs), and large commercial entities-is multi-faceted, evolving to focus almost entirely on the Energy Base platform.

Direct sales force targeting utilities and large commercial customers.

ESS Tech, Inc. (GWH) deploys a direct sales effort centered on its Energy Base product, which is designed for 10+ hour duration storage. As of late 2025, 100% of active opportunities are centered on this platform. This direct engagement has secured key validation points, such as the announced 50 MWh Energy Base pilot project with Salt River Project (SRP), a major Arizona utility. Furthermore, existing systems with Portland General Electric (PGE) continued daily cycling, having transacted another 158 MWh of energy in the first quarter of fiscal year 2025 alone.

Strategic partners like Honeywell for broader market reach and integration.

Strategic collaborations are used to support the supply chain, design integration, and market penetration. Honeywell is specifically noted as a partner in this regard. Other key relationships that serve as channel validation include the work with Salt River Project and Google, which is funding part of the pilot project. ESS Tech, Inc. (GWH) has also built relationships with entities like SB Energy, Portland General Electric, and Sacramento Municipal Utility District (SMUD).

Direct contracting with Independent Power Producers (IPPs) and developers.

ESS Tech, Inc. (GWH) directly contracts with project developers and IPPs, often exploring new revenue models to smooth revenue projections. Management has indicated exploring monthly payment structures like Power Purchase Agreements (PPAs) or tolling agreements to receive revenue ratably. The company secured its first Energy Base order for an 8 MWh project in July 2025, consistent with the strategic shift to the 10+ hour product.

Requests for Proposals (RFPs) and proposal submissions (pipeline over 1.1 GWh).

The pipeline health indicates significant market interest, even as the company transitions its product focus. Proposal submissions totaled approximately 1.2 GWh, representing about $400 million in activity, over the last two quarters leading up to the first quarter of fiscal year 2025. The company also noted over 8 GWh of inquiries across the US and Europe, plus over 30 informal inquiries representing roughly 1.6 GWh.

Here's a quick look at some of the recent customer engagements and pipeline metrics:

Channel Metric/Customer	Value/Size	Platform Focus	Status/Date Context
Proposal Submissions (Last Two Quarters FY25 Q1)	1.2 GWh (approx. $400 million)	Over 70% for Energy Base	Reported in Q1 2025
Salt River Project (SRP) Pilot Project	50 MWh (5 MW)	Energy Base	Announced in Q3 2025; contracting anticipated
Portland General Electric (PGE) Systems	158 MWh transacted	Existing/Warehouse	Transacted in Q1 2025
First Energy Base Order Secured	8 MWh	Energy Base	Announced July 2025

The company's focus on converting this pipeline into signed contracts is paramount, especially given the Q3 2025 revenue was reported at only $200,000, reflecting the transition away from older product lines.

• Direct sales focus is now exclusively on the Energy Base platform.
• The company is exploring project-level capital and monthly payment structures.
• Discussions continue with potential capital providers to support closing key customer contracts.
• The global fleet of ESS Tech, Inc. (GWH) systems is nearing 2.5 GWh of energy transacted cumulatively.

ESS Tech, Inc. (GWH) - Canvas Business Model: Customer Segments

You're looking at the customer base for ESS Tech, Inc. (GWH) as of late 2025, and it's clear the focus has sharpened around long-duration needs. The company's strategy, pivoting to the Energy Base platform, is directly targeting customers who need more than just a few hours of storage; they need true resiliency.

Utility-scale grid operators seeking long-duration resiliency (e.g., SRP)

This segment is your anchor right now, representing the most concrete, validated win for the new Energy Base product. The agreement with Salt River Project (SRP) is the prime example here. You're looking at a 5 MW, 50 MWh pilot project, which is designed to deliver 10 hours of discharge capacity. This deal is structured under a ten-year energy storage agreement, showing the long-term commitment utilities are willing to make for this duration. To put SRP's need in context, they are actively working to at least double their generating resources over the next 10 years and already manage nearly 1,300 MW of storage, including 1,100 MW of battery storage. This validation is key; ESS Tech was selected from more than 10 competitors for this specific project.

Independent Power Producers (IPPs) and renewable energy developers

For ESS Tech, Inc., the engagement with IPPs and developers often mirrors the utility segment. Management has confirmed that for Request for Proposal (RFP) activity, the customers are either utilities or they are IPPs acting on behalf of the utility. The Energy Center™ product line, which offers 8+ hours of storage, was explicitly designed to serve utilities, independent power producers, and commercial customers for larger-scale front-of-the-meter applications. The company is actively pursuing project-level capital and exploring revenue models like Power Purchase Agreements (PPAs) or tolling agreements, which directly involve developers and financiers.

Commercial and industrial customers with high energy demands

While the primary focus is utility-scale, the technology is applicable behind the meter for large commercial and industrial users needing reliable, clean power. The Energy Center™ solution is well-suited for addressing a variety of larger-scale behind-the-meter applications. The company's technology uses earth-abundant iron, salt, and water, which appeals to C&I customers prioritizing safety and sustainability over lithium-ion chemistries. The shift to the Energy Base platform, which offers 12+ hour duration, is designed to support the need for green baseload power for decades to come, a requirement that extends beyond pure utility needs.

Digital infrastructure sector, including data centers, needing resilient, clean power

This is an emerging, high-priority area for ESS Tech, Inc. You'll notice a distinction in how they approach this segment; management stated they are not engaged in RFPs behind the meter for data centers, but rather those conversations are handled on a bilateral basis. The market pull is strong, as ESS Tech was recognized by Fortune in 2025 for its commitment to solving tough energy challenges, specifically citing rapidly growing AI data center demand. The company's pipeline reflects this focus; following the Energy Base launch, proposals submitted represented approximately 1.2 GWh (or $400 million) over the last two quarters of the first half of 2025. As of Q2 2025, the new platform was driving a 1.1 GWh proposal pipeline. The first Energy Base order secured was for an 8 MWh project, showing movement toward commercializing this platform for these demanding users.

Here's a quick look at the quantifiable engagement across the pipeline as of late 2025:

Metric	Value	Context
SRP Pilot Project Capacity	50 MWh (5 MW)	Utility-scale, 10-hour duration, 10-year agreement.
First Energy Base Order	8 MWh	First commercial-scale deployment of the next-generation platform.
Proposal Submissions (2 Qtrs H1 2025)	1.2 GWh (approx. $400 million)	Represents engagement across utility and hyperscale opportunities.
Energy Base Proposal Pipeline (as of Q2 2025)	1.1 GWh	Pipeline driven by the new strategic product offering.
SRP Current Grid Storage	1,100 MW (Battery)	Context for the scale of the utility customer's needs.

The company's entire active opportunity set is now centered on the Energy Base platform. You've got to track the conversion rate on that 1.1 GWh pipeline; that's where the revenue ramp for 2026 will come from.

• The SRP project is a 5 MW / 50 MWh system.
• The Energy Center™ product line is an 8+ hour solution.
• The Energy Base™ product line targets 12+ hour projects.
• The company reported Q3 2025 revenue of $200,000.
• Cash on hand was roughly $30 million as of the Q3 2025 call.

Finance: draft 13-week cash view by Friday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Cost Structure

You're looking at the cost side of the ESS Tech, Inc. (GWH) equation, which is heavily weighted toward scaling production capacity while managing the burn rate during this strategic pivot to the Energy Base platform. The cost structure is defined by significant upfront investment in the physical assets required to build iron flow batteries at scale.

The high fixed costs are centered on the physical footprint and intellectual property development. You have the manufacturing facility in Wilsonville, Oregon, which represents a substantial sunk cost. Furthermore, Research and Development (R&D) is a major fixed component, supporting the continuous improvement of the iron flow technology. For instance, R&D spend in Q1 2025 was reported at $2.3 million, showing the level of investment required to maintain technological leadership and drive down future product costs. This investment is crucial for achieving long-term cost targets, like the goal of pricing the Energy Base near or below $200 per kilowatt-hour (kWh) on a fully installed cost basis for 2027/2028 deliveries.

Variable costs, on the other hand, are tied directly to each unit produced. ESS Tech, Inc.'s core advantage is its chemistry, relying on earth-abundant materials: iron, salt, and water. This avoids the price volatility seen with materials like cobalt and nickel in lithium-ion chemistries. Component sourcing remains a key variable cost, though management is actively pursuing vendor optimization and cost-out initiatives to reduce these per-unit expenses. The company has been making progress on cost reductions, with Q2 2025 cost of revenue showing a 22% decrease compared to Q1 2025, reflecting these early efforts.

Here's a quick look at the key reported expenses from the third quarter of 2025, which really shows where the money went during that period of transition:

Financial Metric	Amount (Q3 2025)
GAAP Cost of Revenues	$4.9 million
GAAP Operating Expenses	$5.1 million
Net Loss	$10.4 million

The $4.9 million in GAAP cost of revenues for Q3 2025 reflects the revenue mix shift away from legacy products toward the new Energy Base platform. Simultaneously, operating expenses totaled $5.1 million for the quarter, which management pointed to as evidence of their commitment to disciplined cost control. Honestly, keeping OpEx flat while transitioning a product line is a significant achievement in managing the cash burn rate.

Capital expenditure is focused on scaling up the ability to fulfill the growing pipeline, which is now 100% centered on the Energy Base platform. The major planned outlay for the second half of 2025 involves the commissioning of the second automated battery manufacturing line, referred to as Line 2. This expansion is designed to significantly increase throughput, with the goal of tripling annual production capacity to over 1 gigawatt-hour (GWh) of battery capacity annually. This CapEx is being supported by financing structures, including an expected draw down from the Export-Import Bank of the United States (EXIM) facility, which was anticipated to fund production capacity CapEx needs through 2025 and into 2026.

You should keep an eye on these cost drivers as production ramps:

• Manufacturing facility depreciation and overhead costs.
• R&D spend to ensure the Energy Base maintains its cost advantage.
• Raw material procurement efficiency for iron, salt, and water.
• Component sourcing costs for non-battery materials.
• Costs associated with commissioning and ramping up Line 2.

Finance: draft the projected Q4 2025 OpEx variance analysis by next Tuesday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Revenue Streams

You're looking at the revenue generation engine for ESS Tech, Inc. (GWH) as they push through their product transition phase in late 2025. Honestly, the numbers right now reflect that pivot, so you need to look at both the current snapshot and the future intent.

Product sales are currently in a state of flux, moving away from legacy units to the next-generation platform. This transition is the main story in the recent financials.

• Delivery of Energy Base and legacy Energy Center/Warehouse systems.
• Closed orders for the sale of four Energy Warehouses as part of the dual strategy to move existing inventory.
• The Company closed its first Energy Base sale following the platform launch.

The most recent reported revenue clearly shows the impact of this shift. You see the legacy revenue winding down while the new platform ramps up.

Q3 2025 GAAP revenue was reported at $200,000, reflecting product transition. This is a significant drop from the $2.4 million reported in the second quarter of 2025. Some reports cite the quarterly revenue as $0.21 million.

ESS Tech, Inc. is actively pursuing future revenue streams tied to project deployment, specifically looking at recurring revenue models rather than just upfront equipment sales. They are exploring monthly payment structures like Power Purchase Agreements (PPAs) or tolling agreements to smooth out revenue projections and establish a baseline.

Liquidity generation through asset monetization, particularly tax credits, is a key component supporting operations while the Energy Base platform scales. This is a non-recurring but important cash inflow.

The sale of Advanced Manufacturing Production Tax Credits (PTC) is used for liquidity. For example, ESS Tech, Inc. monetized $1.9 million of their 2024 Production Tax Credits in Q1 2025. Furthermore, a PTC transaction for approximately $0.8 million was part of the funding package announced in July 2025.

Service and maintenance contracts are the expected long-term revenue stabilizers once systems are deployed and operational, though specific dollar amounts for this stream as of late 2025 weren't detailed in the immediate earnings reports. The focus is on delivering the 50 MWh pilot project with Salt River Project (SRP) to validate performance and build confidence for future service agreements.

Here's a quick look at the financial actions supporting this revenue transition:

Revenue/Liquidity Driver	Specific Metric/Amount	Context/Period
Q3 2025 GAAP Revenue	$200,000	Three Months Ended September 30, 2025
Q2 2025 Revenue (Comparison)	$2.4 million	Three Months Ended June 30, 2025
PTC Monetization (Q1)	$1.9 million	Monetized 2024 PTCs in Q1 2025
PTC Transaction (Q3 Funding)	Approximately $0.8 million	Part of July 2025 funding package
Future Project Deployment	50 MWh	SRP Pilot Project for Energy Base validation

Finance: draft 13-week cash view by Friday.