Trump administration to take stake in battery maker Eos Energy

Industrial battery maker Eos Energy Enterprises announced Tuesday the federal government will buy 570,000 cut-rate shares in the company, which is relocating its headquarters to Pittsburgh.

The Department of Energy has the right to buy the shares at a penny apiece within the next five years, according to financial disclosures from Eos. The agreement is automatically executed if the stock price exceeds $30 after a year, with some stipulations.

Eos shares were trading at $12.75 on the Nasdaq stock exchange as of market close Wednesday, down 5% on the day, but still up 131% since the start of the year.

If the government bought the stock at that price, its holdings in the company would be worth more than $7 million. With about 288 million outstanding shares, Eos is offering the Department of Energy far less than 1% of the company.

As part of the deal, Eos is allowed to issue $500 million in notes that investors can convert into stock. The proceeds will go toward buying back past versions of these notes and “general corporate purposes,” according to Securities and Exchange Commission filings.

The agreement is the result of the Department of Energy modifying a $305 million loan to Eos, according to a spokesperson for the agency.

That loan agreement, entered into in November, is going toward expanding the firm’s main plant in Turtle Creek.

“As part of the Trump administration’s review of the loan portfolio, both parties worked together to enhance the deal,” according to the Energy Department.

”Eos was given the ability to pursue advantageous private market capital as its business grows rapidly, while DOE will gain the ability to share in some of this potential upside through equity value in warrants that eventually can be converted into additional return for the U.S. government.”

Eos did not respond Wednesday to requests for comment.

The firm produces industrial-scale, rechargeable batteries that rely on reactions between zinc and bromine, which the Energy Department touted in a release during the waning days of the Biden administration as valuable for storing excess clean energy.

They’re also used to fuel data centers, perhaps shedding light on why the artificial intelligence-friendly Trump administration remains supportive of Eos, despite its ties to renewables.

President Donald Trump has shown a fondness for these types of deals, with the federal government under his watch taking stakes of 15% in rare earth minerals producer MP Materials and 10% in computer chip maker Intel.

Westinghouse has also entered a profit-sharing deal with the government from the sale of nuclear reactors.

Pennsylvania and Allegheny County economic development agencies got in on the action with Eos last month by pledging a combined $24 million toward growing its operations in Turtle Creek as well as Marshall.

The Turtle Creek facility employs 280 people, a number that will roughly quadruple over the next year or so, according to Eos CEO Joe Mastrangelo. Corporate operations shifting from Edison, New Jersey, to Nova Place in Pittsburgh’s North Shore in the back half of 2026 will bring additional jobs.

Flush with public dollars, the 17-year-old company has finally found itself able to generate substantial revenue. In the third quarter of this year, Eos’ revenues neared $31 million, up from less than $1 million during the same quarter in 2024.

It took a net loss, however, of about $641 million.