In a significant development for the energy storage sector, Eos Energy Enterprises, Inc. (NASDAQ: EOSE) has announced the expansion of its strategic partnership with TETRA Technologies, Inc. (NYSE: TTI). The collaboration aims to enhance the production capacity of electrolytes for Eos’s cutting-edge Eos Z3™ long-duration energy storage cube, a key player in safe, scalable, and sustainable zinc-based energy storage systems.
Under the extended partnership, TETRA Technologies is designated as the preferred strategic supplier of electrolyte products for the American-made Eos Z3™ cube. The agreement positions TETRA to supply a minimum of 75% of the total electrolyte product demand for Eos going forward.
“TETRA is a proven global fluid solution provider, and the Eos strategy has centered around finding raw materials being used in other industries to provide both scale and cost efficiencies. As we scale, we need supply chain partners that can help us achieve growth, reduce cost, and improve the overall performance of our battery. This partnership achieves that while we continue to develop a U.S. supply chain,” said Joe Mastrangelo, CEO of Eos.
The growing demand for Long Duration Energy Storage necessitates increased production volumes, and TETRA’s investment in expanded bromine production is expected to bolster Eos’s scalability over the next several years. This strategic move aims to reduce the cost per battery while simultaneously improving overall quality and performance.
Central to the success of the Eos Z3™ cube is high-purity zinc-bromide, a vital component of Eos’s patented electrolyte system. TETRA’s U.S.-based patented manufacturing process, known as PureFlow®, ensures some of the highest purity levels of zinc-bromide globally. This agreement supports Eos in progressing towards profitability, given that the electrolyte solution is a significant cost component of the Eos Z3 cube.
“We have been working closely and collaboratively with Eos for years as they transition to their new Z3 technology, and in that time have evolved from only supplying zinc-bromide PureFlow® to now offering the full electrolyte solution. This relationship dovetails nicely with our bromine production plans, and we are excited to be part of Eos’s future plans and Inflation Reduction Act objectives,” stated Brady Murphy, President and CEO of TETRA Technologies Inc.
The four-year agreement builds upon the existing partnership initiated in 2021 and includes provisions for possible extensions beyond the initial term. Officials from both Eos and TETRA highlight that the agreement incorporates favorable pricing and cost-saving methodologies, creating mutual incentives for pursuing further cost reductions. This collaborative effort underscores the commitment of both companies to advancing sustainable energy solutions and fostering innovation in the energy storage sector.
