ESS Tech, Inc. (GWH): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage dynamique du stockage des énergies renouvelables, ESS Tech, Inc. (GWH) émerge comme un innovateur révolutionnaire, révolutionnant des solutions d'énergie à l'échelle du grille avec sa technologie de batterie de flux de fer de pointe. En offrant longue durée Et des capacités de stockage plus durables, ESS Tech est sur le point de transformer la façon dont les services publics, les développeurs d'énergies renouvelables et les consommateurs industriels abordent les infrastructures énergétiques, promettant un avenir où une puissance propre et fiable n'est pas seulement une vision, mais une réalité réalisable.

ESS Tech, Inc. (GWH) - Modèle commercial: partenariats clés

Fabricants de technologies de stockage d'énergie de longue durée

ESS Tech s'associe à des fabricants clés pour développer et mettre à l'échelle la technologie de batterie de flux de fer de longue durée.

Partenaire	Focus de la collaboration	Année établie
Énergie de fluence	Solutions de stockage d'énergie à l'échelle du réseau	2022
AES Corporation	Intégration de la technologie de la batterie	2021

Développeurs de projets d'énergie renouvelable

Partenariats stratégiques avec les développeurs d'énergies renouvelables pour mettre en œuvre des solutions de stockage de longue durée.

• Nextera Energy Resources
• Premier solaire
• Cypress Creek Renewables

Entreprises de services publics électriques

Collaborations avec les sociétés de services publics pour le déploiement de stockage d'énergie à l'échelle du réseau.

Entreprise de services publics	Emplacement du projet	Capacité de stockage
Portland General Electric	Oregon	5 MWH
Silicon Valley Power	Californie	3 MWH

Chaîne d'alimentation de batterie et matériaux fournisseurs

Partenariats critiques pour l'approvisionnement en matières premières et l'approvisionnement en composants de batterie.

• Glencore International AG (Iron Supply)
• Albemarle Corporation (matériaux d'électrolyte)
• Trinseo plc (composants polymères)

Gouvernement et institutions de recherche

Partenariats de recherche et développement collaboratifs.

Institution	Focus de recherche	Soutien financier
Département américain de l'énergie	Stockage d'énergie de longue durée	Grant de 4,5 millions de dollars (2023)
Laboratoire national des énergies renouvelables	Optimisation de la technologie de la batterie	Contrat de recherche de 2,3 millions de dollars

ESS Tech, Inc. (GWH) - Modèle d'entreprise: activités clés

Développement de la technologie de batterie de flux de fer à longue durée

ESS Tech se concentre sur le développement de la technologie de batterie de flux de fer propriétaire avec les spécifications techniques suivantes:

Paramètre	Spécification
Durée de vie du cycle de batterie	Plus de 20 000 cycles
Densité énergétique	35-50 wh / kg
Durée de stockage	4-12 heures

Fabrication de systèmes de stockage d'énergie

Les capacités de fabrication comprennent:

• Capacité de production annuelle de 1 GWh en 2024
• Installation située à Wilsonville, Oregon
• Production de systèmes de batteries commerciales et à l'échelle des services publics

Recherche et innovation dans les solutions de stockage à l'échelle du réseau

Détails de l'investissement R&D:

Métrique	Valeur
Dépenses de R&D (2023)	22,4 millions de dollars
Nombre de brevets	37 brevets actifs
Personnel de R&D	68 Ingénieurs et scientifiques

Déploiement commercial d'une infrastructure de stockage d'énergie

Métriques de déploiement:

• Capacité installée totale: 150 MWh à la fin de 2023
• Projets opérationnels aux États-Unis et en Europe
• Taille moyenne du projet: installations à l'échelle de la grille de 2 à 5 MWh

Partenariats stratégiques et expansion du marché

Partenaire	Focus de la collaboration	Année établie
Énergie nextère	Solutions de stockage de grille	2022
PG&E	Déploiement de batterie à l'échelle des services publics	2023
Vestas Wind Systems	Intégration d'énergie renouvelable	2022

ESS Tech, Inc. (GWH) - Modèle d'entreprise: Ressources clés

Technologie de batterie de flux de fer propriétaire

La ressource technologique principale de l'ESSE Tech est son système de batterie de flux de fer propriétaire avec les spécifications suivantes:

Spécifications technologiques	Métrique
Densité énergétique	25-50 wh / kg
Cote de puissance	Jusqu'à 500 kW
Capacité de stockage	4-12 heures durée

Installations de fabrication avancées

Les capacités de fabrication comprennent:

• Installation de production à Wilsonville, Oregon
• Capacité de fabrication totale: 1,5 GWh Production annuelle
• Lignes de production automatisées pour l'assemblage du système de batterie

Propriété intellectuelle et brevets

Détails du portefeuille de brevets:

Catégorie de brevet	Nombre de brevets
Chimie de batterie	38 brevets accordés
Conception du système	22 applications en attente

Talent d'ingénierie technique

Composition de la main-d'œuvre d'ingénierie:

• Personnel d'ingénierie total: 127 employés
• Porte-doctorants: 24 ingénieurs
• Expérience moyenne de l'industrie: 12,5 ans

Solide soutien financier et capital d'investissement

Ressources financières au quatrième trimestre 2023:

Métrique financière	Montant
Equivalents en espèces et en espèces	138,6 millions de dollars
Capital total investi	342,4 millions de dollars
Financement du capital-risque	89,2 millions de dollars

ESS Tech, Inc. (GWH) - Modèle d'entreprise: propositions de valeur

Stockage d'énergie à l'échelle du réseau avec des capacités de durée plus longue

ESS Tech fournit des solutions de stockage d'énergie de longue durée avec jusqu'à 12 heures de conduite. La technologie de batterie de flux Iron Flow de l'entreprise permet des capacités de stockage allant de 100 kWh à 10 MWh par système.

Durée de stockage	Plage de capacité	Emplacements de déploiement
6-12 heures	100 kWh - 10 MWh	Grilles à l'échelle des services publics

Coût moindre par rapport aux batteries au lithium-ion traditionnelles

Les offres de la technologie de batterie Iron Flow d'Ess Tech Tech 50 $ - 100 $ par kWh Coût de stockage, nettement inférieur aux alternatives lithium-ion.

Type de batterie	Coût par kWh	Efficacité du cycle de vie
Ess Fer Flow	$50-$100	Efficacité aller-retour à 95%
Lithium-ion	$200-$300	85% d'efficacité aller-retour

Solution de stockage d'énergie durable pour l'environnement

Les batteries de l'entreprise utilisent Matériaux non toxiques et abondants de la Terre avec zéro émissions de carbone pendant la fabrication et le fonctionnement.

• Composants de la batterie 100% recyclables
• Pas de minéraux de terres rares utilisées
• Empreinte environnementale minimale

Fiabilité améliorée du réseau et intégration des énergies renouvelables

Supports technologiques de l'ESS Tech Stabilisation rapide de la grille avec des temps de réponse inférieurs à 100 millisecondes.

Service de grille	Temps de réponse	Capacité opérationnelle
Régulation de fréquence	<100 ms	50-500 MW

Technologie de stockage évolutive et flexible

La conception modulaire permet une expansion transparente de 100 kWh aux installations de plusieurs mégawatts.

• Conception du système conteneurisé
• Intégration facile du site
• Configuration personnalisable

ESS Tech, Inc. (GWH) - Modèle d'entreprise: relations avec les clients

Ventes directes et support technique

ESS Tech fournit des canaux de vente directs avec une équipe dédiée de 37 représentants des ventes au T2 2023. L'équipe de support technique se compose de 24 ingénieurs spécialisés axés sur les solutions de stockage d'énergie du réseau.

Canal de support	Temps de réponse	Couverture
Support téléphonique	<2 heures	Amérique du Nord
Assistance par e-mail	<4 heures	Mondial
Support technique sur place	<24 heures	Marchés majeurs

Accords de service à long terme

En 2024, ESS Tech a 18 accords de services à long terme actifs avec des sociétés de services publics et des fournisseurs d'énergie renouvelable, avec des valeurs de contrat allant de 5,2 millions de dollars à 12,7 millions de dollars par accord.

Consultation d'ingénierie personnalisée

• Équipe de consultation de 14 ingénieurs seniors
• Coût moyen de consultation du projet: 320 000 $
• Les services de consultation sont l'intégration de la grille de couverture, la conception du système et l'optimisation des performances

Surveillance et optimisation des performances

ESS Tech utilise Systèmes de surveillance à distance en temps réel pour 92% des systèmes de stockage d'énergie déployés. La couverture de surveillance comprend:

Paramètre de surveillance	Fréquence	Points de données suivis
Performance de la batterie	Continu	Tension, température, cycles de charge
Interaction de la grille	En temps réel	Sortie de sortie, efficacité
Maintenance prédictive	De temps	Santé des composants

Développement de technologies collaboratives

En 2023, ESS Tech s'est engagé dans 7 partenariats de recherche en collaboration avec des établissements universitaires et des sociétés de technologie énergétique, avec un investissement total de R&D de 4,3 millions de dollars.

• Partenariat avec Stanford University Energy Storage Research Center
• Programme de développement conjoint avec Pacific Northwest National Laboratory
• Track d'innovation collaborative avec 3 startups de technologie des énergies renouvelables

ESS Tech, Inc. (GWH) - Modèle d'entreprise: canaux

Équipe de vente directe

L'équipe de vente directe d'ESSE Tech se compose de 37 professionnels des ventes dédiés au quatrième trimestre 2023, en se concentrant sur des solutions de stockage d'énergie de longue durée.

Métriques de l'équipe de vente	2023 données
Représentants des ventes totales	37
Couverture géographique	Amérique du Nord, Europe, Asie
Cycle de vente moyen	6-9 mois

Réseaux de partenariat stratégiques

ESS Tech maintient des partenariats stratégiques avec 12 sociétés clés d'infrastructure énergétique et fournisseurs de services publics.

• AES Corporation
• Énergie duc
• Pacific Gas and Electric Company
• Développeurs d'énergies renouvelables

Conférences et salons commerciaux de l'industrie de l'énergie

ESS Tech participe à 8 à 10 conférences d'énergie majeures chaque année, avec un investissement de 1,2 million de dollars en marketing de conférence et de salon pour 2023.

Type de conférence	Nombre d'événements	Investissement en marketing
Conférences de stockage d'énergie	5	$750,000
Les salons des énergies renouvelables	3-5	$450,000

Plateformes numériques en ligne

ESS Tech utilise plusieurs canaux numériques avec 680 000 $ investis dans le marketing numérique pour 2023.

• Site Web de l'entreprise: 125 000 visiteurs mensuels
• Page de société LinkedIn: 42 000 abonnés
• Budget publicitaire numérique: 380 000 $
• Taux de conversion du site Web: 3,2%

Consultants en ingénierie et en achat

ESS Tech collabore avec 22 cabinets de conseil en ingénierie et en achat à travers l'Amérique du Nord et l'Europe.

Réseau de consultants	Portée géographique	Valeur moyenne du projet
Partenaires de conseil total	22	N / A
Consultants nord-américains	15	2,4 millions de dollars
Consultants européens	7	1,8 million d'euros

ESS Tech, Inc. (GWH) - Modèle d'entreprise: segments de clientèle

Sociétés de services publics

En 2024, ESS Tech cible les sociétés de services publics avec des exigences de stockage d'énergie à grande échelle. Le marché mondial du stockage d'énergie à l'échelle des services publics devrait atteindre 42,9 milliards de dollars d'ici 2030.

Segment de marché	Clients potentiels	Demande de stockage annuelle
Services publics nord-américains	23 principaux fournisseurs de services publics	Capacité de stockage de 1,2 GWh
Marché des services publics européens	18 opérateurs de grille	Capacité de stockage de 0,9 GWh

Développeurs d'énergies renouvelables

ESS Tech dessert des développeurs d'énergies renouvelables à la recherche de solutions de stockage à l'échelle du grille.

• Développeurs de projets solaires: 42 clients actifs
• Intégrateurs d'énergie éolienne: 28 clients actifs
• Développeurs de projets renouvelables hybrides: 15 clients actifs

Consommateurs d'énergie commerciale et industrielle

Le segment commercial et industriel représente une clientèle critique avec 3,6 milliards de dollars d'investissement de stockage d'énergie en 2024.

Secteur de l'industrie	Exigence de stockage	Investissement annuel
Fabrication	250 MWH	480 millions de dollars
Centres de données	180 MWH	340 millions de dollars
Établissements de santé	90 MWH	170 millions de dollars

Projets d'infrastructure gouvernementale

Les projets d'infrastructure gouvernementale représentent un segment de clientèle stratégique avec 2,1 milliards de dollars alloués aux solutions de stockage d'énergie en 2024.

• Projets d'infrastructure fédérale: 12 contrats actifs
• Programmes de résilience énergétique au niveau de l'État: 38 contrats actifs
• Électrification de base militaire: 7 contrats actifs

Systèmes d'énergie microréens et hors réseau

Le marché des microréseaux devrait atteindre 33,5 milliards de dollars d'ici 2025, ESS Tech se positionnant en tant que fournisseur de technologie clé.

Type microréseau	Déploiement annuel	Capacité de stockage
Microgers communautaires éloignés	42 nouvelles installations	110 MWH
Solutions de grille insulaire	18 nouvelles installations	75 MWH

ESS Tech, Inc. (GWH) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2023, ESS Tech a déclaré des dépenses de R&D de 62,4 millions de dollars, ce qui représente un investissement important dans l'innovation technologique.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2022	48,7 millions de dollars	18.3%
2023	62,4 millions de dollars	22.1%

Coûts de fabrication et de production

Les coûts de fabrication de l'ESSE Tech pour les systèmes de stockage d'énergie de longue durée en 2023 ont totalisé 87,3 millions de dollars.

• Coût par unité de production: 1,2 million de dollars
• Capacité de production totale: 400 MWh
• Installations de fabrication: situé à Portland, en Oregon

Investissements infrastructures technologiques

Les investissements en infrastructure technologique pour 2023 ont atteint 41,6 millions de dollars, en se concentrant sur les capacités avancées de fabrication de batteries.

Catégorie d'investissement	Montant
Équipement de fabrication	28,3 millions de dollars
Développement de logiciels	9,2 millions de dollars
Infrastructure matérielle	4,1 millions de dollars

Dépenses de vente et de marketing

Les frais de vente et de marketing pour ESS Tech en 2023 se sont élevés à 22,7 millions de dollars.

• Budget de marketing numérique: 6,5 millions de dollars
• Dépenses de salon et de conférence: 3,2 millions de dollars
• Compensation de l'équipe de vente: 13 millions de dollars

Surfaçons opérationnelles et administratives en cours

Les frais généraux opérationnels et administratifs totaux pour 2023 étaient de 35,9 millions de dollars.

Catégorie aérienne	Montant
Salaires des employés	24,6 millions de dollars
Installations de bureau	5,3 millions de dollars
Juridique et conformité	6 millions de dollars

ESS Tech, Inc. (GWH) - Modèle d'entreprise: Strots de revenus

Ventes du système de batterie

En 2023, ESS Tech a annoncé un chiffre d'affaires du système de batterie de 46,7 millions de dollars. Le prix de vente moyen par système de batterie était d'environ 250 000 $ à 500 000 $ en fonction de la capacité de stockage et de la configuration.

Catégorie de produits	Volume des ventes	Revenu
Systèmes de batterie commerciale	92 unités	35,2 millions de dollars
Systèmes de batterie à l'échelle des services publics	24 unités	11,5 millions de dollars

Contrats de stockage d'énergie à long terme

ESS Tech a obtenu des contrats de stockage d'énergie à long terme totalisant 78,3 millions de dollars en 2023, avec des durées de contrat allant de 5 à 15 ans.

• Valeur du contrat moyen: 3,2 millions de dollars
• Capacité contractuelle totale: 215 MWh
• Distribution géographique: 65% d'Amérique du Nord, 25% d'Europe, 10% d'Asie-Pacifique

Accords de licence de technologie

Les licences technologiques ont généré 12,5 millions de dollars de revenus pour 2023, avec des frais de licence allant de 500 000 $ à 2,3 millions de dollars par accord.

Partenaire de licence	Type d'accord	Redevance
Société d'énergie renouvelable	Licence technologique exclusive	2,1 millions de dollars
Systèmes électriques mondiaux	Licence non exclusive	1,6 million de dollars

Partage de revenus basé sur les performances

Les accords de partage des revenus basés sur les performances ont généré 6,8 millions de dollars en 2023, ce qui représente 4,2% du total des revenus de l'entreprise.

Contrats de maintenance et de service

Les contrats de maintenance et de service ont produit 22,4 millions de dollars en 2023, avec une valeur de contrat annuelle moyenne de 375 000 $.

Type de service	Nombre de contrats	Revenus totaux
Entretien préventif	58 contrats	14,2 millions de dollars
Services de réparation d'urgence	42 contrats	8,2 millions de dollars

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.