Honeywell to invest in ESS Tech as part of energy storage collaboration
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ESS Tech (NYSE:GWH) +5.7% pre-market Monday after Honeywell (NASDAQ:HON) said it is taking a stake in the company as part of a strategic collaboration to advance the technology development and market adoption of iron flow battery energy storage systems.
Honeywell (HON) has invested $27.5M in ESS Tech (GWH) in exchange for nearly 16.5M common shares and a warrant to buy up to another ~10.6M shares at $1.89/share, according to an 8-K filing.
ESS (GWH) said it also issued a warrant to buy nearly 6.27M shares at $2.90 each to Honeywell's (HON) UOP affiliate under an intellectual property license agreement.
The two companies said they will work together to meet growing global demand for long-duration energy storage, driven by the rapid increase in renewable power generation.
Iron flow battery technology enables the transition to clean energy using materials such as iron, salt and water to provide energy storage without reliance upon limited minerals such as lithium, cobalt or vanadium.

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