Eos Energy and Cerberus Partner to Launch Frontier Power USA

Edison, N.J. and New York, USA - Eos Energy Enterprises, Inc. (NASDAQ: EOSE), a leader in zinc-based long-duration energy storage systems, has announced a strategic partnership with Cerberus Capital Management, L.P. to launch Frontier Power USA. This new independent development and investment company is designed to build, own, and operate a diversified portfolio of battery energy storage projects, functioning as an Independent Power Producer (IPP).

Transaction Details and Strategic Highlights

• Strategic Joint Venture: Frontier Power USA integrates Eos proprietary Z3 technology with Cerberus institutional capital and operational expertise, aiming to accelerate gigawatt-scale deployments of U.S.-manufactured energy storage.
• Capacity Reservation: Eos has secured a 2 GWh firm capacity reservation agreement, guaranteeing dedicated manufacturing output for Frontier Power USA projects.
• Technology Performance Insurance: The venture has secured a 15-year, non-cancellable performance insurance framework with Ariel Green, with coverage up to approximately $1.5 billion, enhancing project bankability and enabling investment-grade financing terms.
• Capital Commitment: Cerberus is anchoring the initiative with a $100 million equity commitment. Concurrently, Eos plans to launch a rights offering targeting approximately $150 million to fund its own equity contribution, allowing existing shareholders to maintain proportional economic interest.
• Operational Independence: As a standalone entity, Frontier Power USA separates project-level capital from Eos corporate balance sheet, allowing Eos to focus on core technology, manufacturing, and execution.

The platform is expected to create a self-reinforcing growth engine where cash flows from operating projects are systematically reinvested into new project origination. This collaboration aims to compress project lifecycles from initial commitment to first energy cycle, effectively bridging the gap between innovative technology and utility-scale deployment.