ESS Tech, Inc. (NYSE: GWH), a leading manufacturer of long-duration iron flow energy storage solutions, announced the closing of its previously announced registered direct offering with institutional investors, raising approximately $15 million. The transaction involved the sale of 8,571,428 shares of common stock and pre-funded warrants at a price of $1.75 per share, a premium to the Jan. 28, 2026 closing price. The offering closed on Jan. 30, 2026, with aggregate gross proceeds of approximately $15 million.
Net proceeds from the offering, together with existing cash, are expected to be used for general corporate purposes and working capital. Aegis Capital Corp. served as the exclusive placement agent for the offering. This capital infusion comes at a critical time as the company continues to scale its iron flow battery technology, which uses iron, salt, and water to provide long-duration energy storage. The technology is designed to enhance energy security, reliability, and resilience, enabling customers to manage increasing energy demand without power disruptions and maximize the value of excess energy.
The importance of this offering lies in its potential to accelerate the commercialization of ESS's iron flow technology. Long-duration energy storage is increasingly recognized as essential for integrating renewable energy sources like solar and wind into the grid, as it can store energy for periods longer than traditional lithium-ion batteries. ESS's technology offers a sustainable and safe alternative, as it relies on abundant and non-toxic materials. The funds raised will support the company's operations and growth initiatives, including expanding manufacturing capacity and advancing product development.
For more details, the full press release can be accessed at https://ibn.fm/BUYEF. ESS Tech, established in 2011, is dedicated to accelerating decarbonization through longer-lasting energy storage solutions. The company's iron flow batteries are designed to meet the growing demand for reliable and sustainable energy storage.
This financing round highlights investor confidence in ESS's technology and business model, particularly as the energy storage market expands. The proceeds will help the company navigate the capital-intensive nature of manufacturing and deployment, potentially strengthening its competitive position against other storage technologies. The involvement of institutional investors also signals a belief in the long-term viability of iron flow batteries.
In summary, the $15 million registered direct offering provides ESS Tech with essential capital to support its working capital needs and general corporate purposes, enabling the company to continue developing and deploying its innovative iron flow energy storage solutions. This development is significant for the clean energy sector as it underscores the growing financial support for long-duration storage technologies that are crucial for grid stability and renewable energy integration.
