The big news from $EOSE earnings report today was the formation of Frontier Power USA with Cerberus Capital Management.
Frontier Power USA is a platform for long-duration energy storage development.
Cerberus Capital Management has commited $100 million, $EOSE is expected to provide $150 million later.
This joint venture will help $EOSE focus strictly on manufacturing and technology development.
Frontier Power will act as an independent power producer. It will find and secure sites for energy storage and raise capital for building and managing them.
The first agreement between $EOSE and Frontier Power has already been signed: $EOSE will have to provide 2 GWh in storage capacity.
This boosted $EOSE’s backlog to $644,6 million and helped the company reaffirm the 2026 revenue guidance of $300 million - $400 million.
To be on the safe side, Frontier Power has secured a $1,5 billion 15 year non-cancellable technology performance insurance.
Creditors could be wary of $EOSE’s zinc-aqueous batteries. It's new technology that may or may not work. If it doesn't, the insurance will cover the losses.
I like it that $EOSE has separated manufacturing and energy storage development.
It’s already faced operational challenges. Let it do what it does best: Develop and produce durable, non-flammable batteries from components sourced domestically.
Frontier Power will take care of where those batteries will be deployed.
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