Eos Energy Enterprises Inc. (NASDAQ:EOSE) saw its stock rise 4.1% in premarket trading after the company announced it had received the second tranche of funding from the U.S. Department of Energy’s Loan Programs Office.
The additional funds are part of a broader loan agreement aimed at boosting domestic battery manufacturing. Eos stated the tranche will cover up to 80% of eligible costs tied to its expansion efforts. This follows the initial disbursement of $68.3 million received in December.
Eos, which specializes in zinc-based energy storage systems, said the financing will help scale its U.S.-based production and meet growing demand for long-duration battery solutions.
Stifel analyst Stephen Gengaro noted the company has made “solid progress” in fortifying its financial position and is well-positioned to fulfill its increasing order backlog. Gengaro reiterated a Buy rating on Eos shares, with a price target of $8.50.