ESS Tech, Inc. (GWH): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No cenário dinâmico do armazenamento de energia renovável, a ESS Tech, Inc. (GWH) surge como um inovador inovador, revolucionando as soluções de energia em escala de grade com sua tecnologia de bateria de fluxo de ferro de ponta. Oferecendo duração mais longa E mais recursos de armazenamento sustentáveis, a Tech ESS está pronta para transformar como as concessionárias, os desenvolvedores de energia renovável e os consumidores industriais abordam a infraestrutura energética, prometendo um futuro em que um poder limpo e confiável não é apenas uma visão, mas uma realidade viável.

ESS Tech, Inc. (GWH) - Modelo de Negócios: Principais Parcerias

Fabricantes de tecnologia de armazenamento de energia de longa duração

A ESS Tech faz parceria com os principais fabricantes para desenvolver e escalar a tecnologia de bateria de fluxo de ferro de longa duração.

Parceiro	Foco de colaboração	Ano estabelecido
Energia de fluência	Soluções de armazenamento de energia em escala de grade	2022
AES Corporation	Integração da tecnologia da bateria	2021

Desenvolvedores de projetos de energia renovável

Parcerias estratégicas com desenvolvedores de energia renovável para implementar soluções de armazenamento de longa duração.

• Recursos Energéticos da Nextera
• Primeiro solar
• Renováveis ​​Cypress Creek

Empresas de serviços públicos elétricos

Colaborações com empresas de serviços públicos para implantação de armazenamento de energia em escala de grade.

Empresa de serviços públicos	Localização do projeto	Capacidade de armazenamento
Portland General Electric	Oregon	5 mwh
Power do Vale do Silício	Califórnia	3 mwh

Cadeia de suprimentos de bateria e fornecedores de materiais

Parcerias críticas para compras de matéria -prima e fornecimento de componentes da bateria.

• Glencore International AG (suprimento de ferro)
• Albemarle Corporation (Materiais Eletrólitos)
• Trinseo plc (componentes poliméricos)

Instituições de governo e de pesquisa

Parcerias colaborativas de pesquisa e desenvolvimento.

Instituição	Foco na pesquisa	Suporte de financiamento
Departamento de Energia dos EUA	Armazenamento de energia de longa duração	Grant de US $ 4,5 milhões (2023)
Laboratório Nacional de Energia Renovável	Otimização da tecnologia da bateria	Contrato de pesquisa de US $ 2,3 milhões

ESS Tech, Inc. (GWH) - Modelo de Negócios: Atividades -chave

Desenvolvimento da tecnologia de bateria de fluxo de ferro de longa duração

A ESS Tech se concentra no desenvolvimento da tecnologia proprietária de bateria de fluxo de ferro com as seguintes especificações técnicas:

Parâmetro	Especificação
Vida de ciclo da bateria	Mais de 20.000 ciclos
Densidade energética	35-50 WH/KG
Duração do armazenamento	4-12 horas

Fabricação de sistemas de armazenamento de energia

Os recursos de fabricação incluem:

• Capacidade anual de produção de 1 GWh a partir de 2024
• Instalação localizada em Wilsonville, Oregon
• Produção de sistemas de baterias comerciais e em escala de utilidade

Pesquisa e inovação em soluções de armazenamento em escala de grade

Detalhes do investimento em P&D:

Métrica	Valor
Despesas de P&D (2023)	US $ 22,4 milhões
Número de patentes	37 patentes ativas
Pessoal de P&D	68 engenheiros e cientistas

Implantação comercial de infraestrutura de armazenamento de energia

Métricas de implantação:

• Capacidade total instalada: 150 mwh até o final de 2023
• Projetos operacionais nos Estados Unidos e na Europa
• Tamanho médio do projeto: instalações em escala de grade de 2-5 MWh

Parcerias estratégicas e expansão de mercado

Parceiro	Foco de colaboração	Ano estabelecido
Energia Nextera	Soluções de armazenamento de grade	2022
PG&E	Implantação de bateria em escala de utilidade	2023
Vestas Wind Systems	Integração de energia renovável	2022

ESS Tech, Inc. (GWH) - Modelo de Negócios: Recursos -Principais

Tecnologia proprietária de bateria de fluxo de ferro

O principal recurso tecnológico da ESS Tech é o seu sistema de bateria de fluxo de ferro proprietário com as seguintes especificações:

Especificação de tecnologia	Métrica
Densidade energética	25-50 WH/KG
Classificação de energia	Até 500 kW
Capacidade de armazenamento	Duração de 4-12 horas

Instalações de fabricação avançadas

Os recursos de fabricação incluem:

• Instalação de produção em Wilsonville, Oregon
• Capacidade total de fabricação: produção anual de 1,5 GWh
• Linhas de produção automatizadas para montagem do sistema de bateria

Propriedade intelectual e patentes

Detalhes do portfólio de patentes:

Categoria de patentes	Número de patentes
Química da bateria	38 Patentes concedidas
Design do sistema	22 Aplicações pendentes

Talento de engenharia técnica

Composição da força de trabalho de engenharia:

• Equipe total de engenharia: 127 funcionários
• Titulares de doutorado: 24 engenheiros
• Experiência média da indústria: 12,5 anos

Forte apoio financeiro e capital de investimento

Recursos Financeiros a partir do quarto trimestre 2023:

Métrica financeira	Quantia
Caixa e equivalentes de dinheiro	US $ 138,6 milhões
Total Invested Capital	US $ 342,4 milhões
Financiamento de capital de risco	US $ 89,2 milhões

ESS Tech, Inc. (GWH) - Modelo de Negócios: Proposições de Valor

Armazenamento de energia em escala de grade com recursos de duração mais longa

A Tech ESS fornece soluções de armazenamento de energia de longa duração com Capacidades de descarga de até 12 horas. A tecnologia de bateria de fluxo de ferro da empresa permite capacidades de armazenamento que variam de 100 kWh a 10 MWh por sistema.

Duração do armazenamento	Faixa de capacidade	Locais de implantação
6-12 horas	100 kWh - 10 mwh	Grades em escala de utilidade

Custo mais baixo em comparação às baterias tradicionais de íon de lítio

A tecnologia de bateria de fluxo de ferro da Ess Tech oferece $ 50- $ 100 por kWh Custo de armazenamento, significativamente menor que as alternativas de íons de lítio.

Tipo de Bateria	Custo por kWh	Eficiência do ciclo de vida
ESS FLUXO DE FERRO	$50-$100	95% de eficiência de ida e volta
Ion de lítio	$200-$300	85% de eficiência de ida e volta

Solução ambientalmente sustentável de armazenamento de energia

As baterias da empresa utilizam Materiais não tóxicos e abundantes da Terra com emissões de carbono zero durante a fabricação e operação.

• Componentes de bateria 100% recicláveis
• Sem minerais de terras raras usadas
• Pegada ambiental mínima

Confiabilidade da grade aprimorada e integração de energia renovável

A tecnologia da ESS Tech suporta Estabilização rápida da grade Com tempos de resposta abaixo de 100 milissegundos.

Serviço de grade	Tempo de resposta	Capacidade operacional
Regulação da frequência	<100 ms	50-500 MW

Tecnologia de armazenamento escalável e flexível

O design modular permite expansão perfeita de 100 kWh para instalações multigawatts.

• Design do sistema em contêiner
• Integração fácil do site
• Configuração personalizável

ESS Tech, Inc. (GWH) - Modelo de Negócios: Relacionamentos do Cliente

Vendas diretas e suporte técnico

A ESS Tech fornece aos canais de vendas diretos uma equipe dedicada de 37 representantes de vendas a partir do quarto trimestre 2023. A equipe de suporte técnico consiste em 24 engenheiros especializados focados nas soluções de armazenamento de energia da grade.

Canal de suporte	Tempo de resposta	Cobertura
Suporte telefônico	<2 horas	América do Norte
Suporte por e -mail	<4 horas	Global
Suporte técnico no local	<24 horas	Principais mercados

Acordos de serviço de longo prazo

A partir de 2024, a ESS Tech possui 18 acordos ativos de serviço de longo prazo com empresas de serviços públicos e provedores de energia renovável, com valores de contrato que variam de US $ 5,2 milhões a US $ 12,7 milhões por contrato.

Consulta de engenharia personalizada

• Equipe de consulta de 14 engenheiros seniores
• Custo médio de consulta do projeto: US $ 320.000
• Os serviços de consulta cobrem a integração da grade, o design do sistema e a otimização de desempenho

Monitoramento e otimização de desempenho

A TECH ESS UTILIZA sistemas de monitoramento remoto em tempo real para 92% dos sistemas de armazenamento de energia implantados. A cobertura de monitoramento inclui:

Parâmetro de monitoramento	Freqüência	Pontos de dados rastreados
Desempenho da bateria	Contínuo	Ciclos de tensão, temperatura, carga
Interação da grade	Em tempo real	Produção de energia, eficiência
Manutenção preditiva	A cada hora	Saúde do componente

Desenvolvimento de Tecnologia Colaborativa

Em 2023, a ESS Tech se envolveu em 7 parcerias de pesquisa colaborativa com instituições acadêmicas e empresas de tecnologia de energia, com investimentos totais de P&D de US $ 4,3 milhões.

• Parceria com o Stanford University Energy Storage Research Center
• Programa de Desenvolvimento Conjunto com o Laboratório Nacional do Noroeste do Pacífico
• Faixa de inovação colaborativa com 3 startups de tecnologia de energia renovável

ESS Tech, Inc. (GWH) - Modelo de Negócios: Canais

Equipe de vendas diretas

A equipe de vendas direta da ESS Tech consiste em 37 profissionais de vendas dedicados a partir do quarto trimestre 2023, concentrando-se em soluções de armazenamento de energia de longa duração.

Métricas da equipe de vendas	2023 dados
Total de representantes de vendas	37
Cobertura geográfica	América do Norte, Europa, Ásia
Ciclo médio de vendas	6-9 meses

Redes de parceria estratégica

A ESS Tech mantém parcerias estratégicas com 12 principais empresas de infraestrutura de energia e provedores de serviços públicos.

• AES Corporation
• Duke Energy
• Pacific Gas and Electric Company
• Desenvolvedores de energia renovável

Conferências e feiras do setor de energia

A ESS Tech participa de 8 a 10 grandes conferências de energia anualmente, com um investimento de US $ 1,2 milhão em marketing de conferência e feira de feiras para 2023.

Tipo de conferência	Número de eventos	Investimento de marketing
Conferências de armazenamento de energia	5	$750,000
Feiras de energia renovável	3-5	$450,000

Plataformas digitais online

A TECH ESS utiliza vários canais digitais com US $ 680.000 investidos em marketing digital para 2023.

• Site da empresa: 125.000 visitantes mensais
• Página da empresa do LinkedIn: 42.000 seguidores
• Orçamento de publicidade digital: US $ 380.000
• Taxa de conversão do site: 3,2%

Consultores de engenharia e compras

A ESS Tech colabora com 22 empresas de consultoria de engenharia e compras na América do Norte e na Europa.

Rede de consultores	Alcance geográfico	Valor médio do projeto
Total de Parceiros de Consultoria	22	N / D
Consultores da América do Norte	15	US $ 2,4 milhões
Consultores europeus	7	€ 1,8 milhão

ESS Tech, Inc. (GWH) - Modelo de Negócios: Segmentos de Clientes

Empresas de serviços públicos

A partir de 2024, a ESS Tech direciona empresas de serviços públicos com requisitos de armazenamento de energia em larga escala. O mercado global de armazenamento de energia em escala de utilidade deve atingir US $ 42,9 bilhões até 2030.

Segmento de mercado	Clientes em potencial	Demanda anual de armazenamento
Utilitários norte -americanos	23 principais provedores de serviços públicos	1.2 Capacidade de armazenamento de GWh
Mercado de Utilidade Europeia	18 operadores de grade	Capacidade de armazenamento de 0,9 GWh

Desenvolvedores de energia renovável

A ESS Tech serve desenvolvedores de energia renovável que buscam soluções de armazenamento em escala de grade.

• Desenvolvedores de projetos solares: 42 clientes ativos
• Integradores de energia eólica: 28 clientes ativos
• Desenvolvedores de projetos renováveis ​​híbridos: 15 clientes ativos

Consumidores de energia comercial e industrial

O segmento comercial e industrial representa uma base crítica de clientes com investimento de armazenamento de energia projetado de US $ 3,6 bilhões em 2024.

Setor da indústria	Requisito de armazenamento	Investimento anual
Fabricação	250 mwh	US $ 480 milhões
Data centers	180 MWH	US $ 340 milhões
Instalações de saúde	90 mwh	US $ 170 milhões

Projetos de infraestrutura do governo

Os projetos de infraestrutura governamental representam um segmento estratégico de clientes com US $ 2,1 bilhões alocados para soluções de armazenamento de energia em 2024.

• Projetos federais de infraestrutura: 12 contratos ativos
• Programas de resiliência de energia em nível estadual: 38 contratos ativos
• Eletrificação da base militar: 7 contratos ativos

Sistemas de energia microgrid e fora da grade

O mercado de microgrídeos deve atingir US $ 33,5 bilhões até 2025, com a ESS Tech se posicionando como fornecedora de tecnologia importante.

Tipo de micrograde	Implantação anual	Capacidade de armazenamento
Microgrades comunitárias remotas	42 novas instalações	110 mwh
Island Grid Solutions	18 novas instalações	75 MWh

Ess Tech, Inc. (GWH) - Modelo de Negócios: Estrutura de Custo

Despesas de pesquisa e desenvolvimento

Para o ano fiscal de 2023, a ESS Tech registrou despesas de P&D de US $ 62,4 milhões, representando um investimento significativo em inovação tecnológica.

Ano fiscal	Despesas de P&D	Porcentagem de receita
2022	US $ 48,7 milhões	18.3%
2023	US $ 62,4 milhões	22.1%

Custos de fabricação e produção

Os custos de fabricação da ESS Tech para sistemas de armazenamento de energia de longa duração em 2023 totalizaram US $ 87,3 milhões.

• Custo por unidade de produção: US $ 1,2 milhão
• Capacidade total de produção: 400 mwh
• Instalações de fabricação: Localizado em Portland, Oregon

Investimentos de infraestrutura de tecnologia

Os investimentos em infraestrutura de tecnologia para 2023 atingiram US $ 41,6 milhões, com foco em recursos avançados de fabricação de baterias.

Categoria de investimento	Quantia
Equipamento de fabricação	US $ 28,3 milhões
Desenvolvimento de software	US $ 9,2 milhões
Infraestrutura de hardware	US $ 4,1 milhões

Despesas de vendas e marketing

As despesas de vendas e marketing da ESS Tech em 2023 totalizaram US $ 22,7 milhões.

• Orçamento de marketing digital: US $ 6,5 milhões
• Feira de feira e despesas da conferência: US $ 3,2 milhões
• Compensação da equipe de vendas: US $ 13 milhões

Overhead operacional e administrativo em andamento

A sobrecarga operacional e administrativa total para 2023 foi de US $ 35,9 milhões.

Categoria de sobrecarga	Quantia
Salários dos funcionários	US $ 24,6 milhões
Instalações de escritório	US $ 5,3 milhões
Legal e conformidade	US $ 6 milhões

ESS Tech, Inc. (GWH) - Modelo de Negócios: Fluxos de Receita

Vendas do sistema de bateria

Em 2023, a ESS Tech reportou receita de vendas de sistemas de baterias de US $ 46,7 milhões. O preço médio de venda por sistema de bateria foi de aproximadamente US $ 250.000 a US $ 500.000, dependendo da capacidade e configuração de armazenamento.

Categoria de produto	Volume de vendas	Receita
Sistemas de baterias comerciais	92 unidades	US $ 35,2 milhões
Sistemas de bateria em escala de utilidade	24 unidades	US $ 11,5 milhões

Contratos de armazenamento de energia de longo prazo

A ESS Tech garantiu contratos de armazenamento de energia de longo prazo, totalizando US $ 78,3 milhões em 2023, com durações de contratos que variam de 5 a 15 anos.

• Valor médio do contrato: US $ 3,2 milhões
• Capacidade total contratada: 215 MWh
• Distribuição geográfica: 65% da América do Norte, 25% Europa, 10% da Ásia-Pacífico

Acordos de licenciamento de tecnologia

O licenciamento de tecnologia gerou US $ 12,5 milhões em receita para 2023, com taxas de licenciamento que variam de US $ 500.000 a US $ 2,3 milhões por contrato.

Parceiro de licenciamento	Tipo de contrato	Taxa de licença
Corporação de Energia Renovável	Licença de tecnologia exclusiva	US $ 2,1 milhões
Sistemas de energia global	Licença não exclusiva	US $ 1,6 milhão

Compartilhamento de receita baseado em desempenho

Os acordos de compartilhamento de receita baseados em desempenho geraram US $ 6,8 milhões em 2023, representando 4,2% da receita total da empresa.

Contratos de manutenção e serviço

Os contratos de manutenção e serviço produziram US $ 22,4 milhões em 2023, com um valor médio de contrato anual de US $ 375.000.

Tipo de serviço	Número de contratos	Receita total
Manutenção preventiva	58 contratos	US $ 14,2 milhões
Serviços de reparo de emergência	42 contratos	US $ 8,2 milhões

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.