ESS Tech Stock Skyrockets 146% on Arizona Battery Deal
Agreement with Salt River Project for a 50 MWh iron-flow system signals major commercial validation for the energy storage firm.
Shares of ESS Tech Inc. (GWH) skyrocketed in a massive rally, closing up 145.9% after the company announced a significant energy storage agreement with Arizona's Salt River Project (SRP). The surge was fueled by exceptionally high trading volume, with over 277 million shares changing hands, as investors cheered a deal that provides major commercial validation for the company's long-duration battery technology.
The strategic 10-year agreement involves ESS supplying a 50 megawatt-hour (MWh) iron-flow battery system to SRP, one of Arizona's largest utilities. The project is a critical step for SRP, which is actively seeking non-lithium-ion, long-duration energy storage solutions to support its grid as it plans to double its power generation resources over the next decade to meet escalating demand. for ESS and the broader Long-Duration Energy Storage (LDES) industry.
ESS's system will be installed at SRP's Copper Crossing Energy and Research Center and is designed to deliver 10 hours of continuous power. This capability is crucial for grid stability, allowing utilities to store excess renewable energy generated during the day and deploy it during peak evening hours. The company's iron-flow technology, which uses iron, salt, and water, is positioned as a safer, more environmentally sustainable, and longer-lasting alternative to traditional lithium-ion batteries, with a projected 25-year lifespan without capacity degradation.
The agreement is a landmark achievement for ESS, providing a crucial proof-of-concept for its technology with a major U.S. utility. reflects growing recognition of the need for diverse energy storage technologies. , the project will break ground in 2026 and is expected to be operational by the end of 2027, marking a pivotal step in scaling innovative energy storage solutions.