ESS Tech Skyrockets 145% on SRP Battery Deal with Google
Long-duration energy storage agreement validates ESS's iron-flow battery technology, attracting a key industry partnership and a Wall Street upgrade.
Shares of ESS Tech Inc. (NYSE: GWH) surged over 145% after the company announced a landmark deal with Arizona utility Salt River Project (SRP) to deploy a 50-megawatt-hour (MWh) iron-flow battery system, a project that also involves a collaboration with Google.
The deal represents a major commercial validation for ESS Tech's long-duration energy storage technology. to deploy its iron-flow 'Energy Center' system. The project is designed to store power for up to 10 hours, providing a critical solution for grid stability as renewable energy adoption grows.
Adding significant weight to the announcement is the involvement of Google. The tech giant is collaborating with SRP on the initiative as part of its broader commitment to run its global operations on 24/7 carbon-free energy by 2030. in non-lithium-ion energy storage solutions to help decarbonize the grid.
"This is a significant validation for the long-duration energy storage industry and for ESS as a technology provider," said Kelly Goodman, interim CEO of ESS Tech, in a statement. The project will provide crucial data on the performance of iron-flow technology in Arizona's demanding climate.
The market reaction was immediate and dramatic. GWH shares skyrocketed following the news, reflecting investor optimism about the company's growth prospects. The powerful rally prompted a key analyst re-rating, with and more than doubling its price target to $3.50. The firm cited the SRP agreement and Google's involvement as key catalysts that significantly de-risk the company's commercial path forward. While this single deal is a transformative step, investors will now be watching for further agreements to prove the technology can be deployed at scale and drive a sustainable path to profitability.