<ul><li>ESS Inc, a NYSE-listed long-duration iron flow battery developer, reported its Q2 2022 results. The company recorded revenues for the first time since its listing in October 2021 with a revenue of USD 686,000 for the quarter. This comes from the recognition of three Energy Warehouses developed for Energy Storage Industries Asia Pacific (ESI), an Australian renewables company.</ul>

• Operating loss for the quarter amounted to USD 24.2 million, an increase of 138.1% YoY. This was due to increases in R&D costs (+159.8% YoY), general, and administrative costs (+110.4% YoY), and sales and marketing costs (+171% YoY).

• ESS’s CEO, Eric Dresselhuys noted that the company has encountered supply chain challenges with several vendors which might impact their ability to deliver the 40–50 Energy Warehouses in 2022 as planned. However, it was also highlighted that ESS’s operational initiatives to lower costs and increase capacity remain on track, and that their second semi-automated manufacturing line is now fully operational, which doubles the annual production capacity to 500 MWh. 

Other operational highlights

• On 11th August 2022, ESS and ESI announced a strategic partnership to distribute and manufacture iron flow batteries utilizing ESS technology in Australia, New Zealand, and Oceania. Under this agreement,  ESS is to supply 70 Energy Warehouses (75kW / 500kWh) from 2022-2023, while ESI will construct a manufacturing facility with 400 MW of annual production capacity in Queensland, Australia. This facility will be equipped to carry out the final assembly of ESS systems from 2024 onward.

• ESS delivered all six of the Energy Warehouse units ordered by SDG&E and delivered one Energy Warehouse to TerraSol Energies with whom the company has partnered with to deliver a second warehouse.

• ESS signed a contract to deliver an Energy Center to Tampa Electric Company (TECO) which is expected to be shipped in 2023.