ESS Tech, Inc., a manufacturer of iron flow long-duration energy storage systems for commercial and utility-scale applications, has announced a $31 million insider-led funding package to support its strategic transition and working capital needs. The package comprises approximately $0.9 million in short-term loans and warrants from a group led by ESS board members and management, alongside participation from an investment fund managed by Yorkville Advisors Global, L.P.
An affiliate of SB Energy will contribute roughly $0.8 million through a production tax credit transaction, while a U.S. strategic partner will provide $4 million in cash through an equipment sale-and-leaseback arrangement.
ESS also entered into a three-year Standby Equity Purchase Agreement with YA II PN, LTD, securing the right—but not the obligation—to issue up to $25 million in common equity, subject to customary limitations and shareholder approval for issuances exceeding 19.99% of outstanding shares.
In conjunction with these financing measures, ESS secured its first order for an 8 MWh Energy Base project, reflecting the company’s February announcement to focus on 10+hour duration products.
Operational improvements completed in the second quarter reduced the company’s monthly cash burn by roughly 80% in June versus the average for the first five months of 2025.
Preliminary unaudited results for Q2 2025 indicate a near 300% increase in revenue over Q1, a 22% decline in cost of revenue, a 37% drop in operating expenses, a 43% improvement in net loss, and a 49% enhancement in adjusted EBITDA.
Directors have also agreed to forgo cash compensation for 2025 under the outside director compensation policy.
“I am pleased to announce these transactions with our key partners coupled with a broader capital markets transaction that supports ongoing execution of our strategic pivot. This funding helps to strengthen our cash position to allow us to focus on the completion of key Energy Base contracting opportunities and to secure our broader capital raise,” said Kelly Goodman, Interim Chief Executive Officer.
Interim CEO Kelly Goodman stated that these transactions will reinforce ESS’s cash position, enabling the company to concentrate on key Energy Base contract execution and broader capital-raising efforts. ESS’s proprietary battery technology has demonstrated extended duration performance of 12.2 hours at rated power and 17.8 hours at reduced power, with all Energy Base products manufactured entirely in the United States.
Source: Business Wire
