Eos Energy Enterprises (EOSE) 15 Aug 232023 Q2 Earnings call transcript

Hi. Good morning, and welcome to Eos Energy Enterprises Second Quarter 2023 Conference Call.

As a reminder, today's call is being recorded and your participation implies consent to such recording. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

like Director the of would Liz over I Acting Higley, Investor that, to call turn to With Relations. Thank you.

You may begin.

morning, financial call Thank us XXXX. Good everyone, you thank you. for for Eos's the results for conference and second quarter and joining

we call CEO, Eos Kroeker. today, CFO, Joe On and Nathan have the Mastrangelo,

respect statements, assumptions. provide current Before Q&A statements. call the portion our to regarding or future filings. including not should actual statements. The that to forward-looking a to risks Should implied subject forward-looking limited our but our incorrect, differ risks we may with our risks, those begin, are be from allow and are SEC This for forward-looking expectations of to materially may disclaimer subject uncertainties to any our of me uncertainties are described company, call, in results expectation statements the results these include including and which forward-looking assumptions to these materialize or prove by certain

represent information as occurrence replay conference or reflect unanticipated events through of Eos's any Forward-looking or update date except We to webcast via obligation today our to will be or of after at during website required investors.eose.com. new This law. events for call undertake by circumstances no the to are the call only such this available reflect statements as statements made. statements made Investor forward-looking and assumptions beliefs Relations

Mastrangelo. that, before over now through call walk proceed Nathan turn and highlights, Joe results With Eos business you will company I'll CEO, to we Joe financial and to Q&A. the priorities the

call. time a to Eos, Eos I for for our our very employees important behalf On QX to want at in plus welcome XXX both industry. and moment of everyone It's earnings the

inflection its and said before, important in has to We're power been world at Eos for years for the I XX future. at XX industry as an what I've the point you needs years. existence As nearly look energy in been

now high in operating on right Texas, look experiencing ERCOT their you market States, record grid. which the the ability produce temperatures, the straining the When is United at are California is highs. to

which renewable pipeline, required going You order on and to about integrate the some But grid. our see numerous caused grid. safely our and how storage is a what go concern to into energy business our energy about backlog can details and what's our we has specific grow through later wanted deliver required Nathan's what's examples. truly customer ultimately energy help significant talk decarbonize our to -- around to on fires I projects,

solution is as those of to the here demand have United to faster energy the industry an two-hour as but and and we storage not is provides flexible a company important with not I intent believe the is on as and just What's the power from decarbonization. you world a acting. acting same At taking asking right the work it's legislation, a policies solution, that IRA the demand. place that. then in What in framework where time, to and place, grid. now safety States which policy our having policies we reliability And do the storage on for need It's deliver energy the deliver all that is in we moving

left-hand talk and The factory page. by American that the out say solution and lower every market day on of we can a about side that the have same a the We state-of-the-art we need it's technology into being to that -- the but have like still of that deliver At that American of we equipment. upon fact that our believe work marketplace that product we're also technology note that talk refine, ability improve, the discharged day. to able We the every we've future American energy important and on have gigawatt American hours security product. time deliver It's focused still and on designed deliver do. manufacturing need in with to built using lifetime to things as that growth our we to we minds, that no that time, we number the see country. have materials to of evidenced it's That's deliver predominantly was with it's our over X.X fix, we over of to the about hands energy more

flip If X, look, you to Page tells stories. X,XXX a picture a

Creek, with semi-automated manufacturing stations in their manning and our employees line building Pennsylvania, batteries. of picture our a Turtle Here's

of commercial are and but we basis. doing good are feel are really where production, Now what in delivering proud we the very day-by-day is a early we on of team about we days

So world. of the to to our our like we and why feel Page here industry needs the if want just a I core and we on that product three move deliver can X, to as future hit concepts have we

we've fast-growing been a basic First perform product can you that you do so around a can our you a cost product at the do market. cycle technologically and the that always you seal core a and years. a has used how been, do XX How life that where battery that battery that can one over you We've is, do for XX-year and challenge has that taken how chemistry a do span? same into at scale time deliver do that

which highest we from developed, And take team every results that lot a generations the performance. of and ZX battery. ZX over what like that with is that into titanium to do the taking being various to us you this design of it our and out battery learning team cycle promising, the it design. that are incorporated and to batteries we've but enables replacing New have challenges component way, on realize both in Edison, Jersey, cost reduce in new into improve conducted the of leaking technological initial time new that in had the able ceiling learned the was the ZX This very technology. incorporating the step has polymer, We've design our and

page, to move our center the is performance very promising. of you battery the If initial

here, think have means. an we is performance view take Now do I to what of what insider's

requiring people lithium lower of talk technology what about, six, them EOS's measure I HVAC against our can solution. And lithium-ion. same trip in So efficiency need if discharge be also trip But lithium that's XX, true. we that of then ion at you take XX is hours the at the That round eight, that Eos ion. that and two you points an with to us do and delivery -- say able four, hours to Eos risk efficiency time, to with get else heard sacrifice than couple lithium fire performance same efficiency time. trip at ion, see round systems and the operate, you safety the well, and energy round measure an that We same around without for to reduce a battery

when these And the That's high systems operating temperature think that's summer. are here environments. higher in why power this about important you demand you have

has that nine at that's to That's require product complex be the perform. develop. been of look So team able them the cooling you allow safe, to sophisticated when going the to And to performance you modules. systems that need something doesn't

lab. is a exactly performing this designed in is the So that as subset it but small technology of was technology,

forward. done XX-year are new throughout introductions we going career. to as there be Now I've numerous product move challenges my

as what You look is our don't your to performance start on your what you initial and we've we don't know from you promising really roadmap. until building executing in know But future. deliver the on seen

side hand on don't you the far sell the then And on on right individual cell. of battery the an the page,

You don't individual an even battery. sell

how cost how you the You effective. inside and our team make sell a system, a has up job you you that make that of that operate. and system. simplifying to system. here look done And coming fantastic got at And

system that here same and in goal operate is expected have more deliver of out of complexity that industry to the simplify amount on the perform operating reduce the to what's cubes whole reduce in power difficult energy of field, wires reduce off to environment the this of allow allow field, electronics you it the the to a cost, have the product. and Our you and

fundamentals say of this part Page about Look, line and So launch. proud that X the team our to The on talk that off three that day with and to every I to work weeks happened the left we the this production be they page, work then proud flip those amazes of you team. at if I'm -- one take I'm me few ago. a commercial do. of start side that’s day hand And Eos.

been very the of commercial on we've purposeful because about speed manufacture. you that turning production Now

shareholders sure to inside an compounding very, the about we've at would very make dollar that problem the have to battery. improve be spending we learned and of have it of how way how inherent every product you step to battery, this the cost production cash we're your cautious wisely. the how we If been that every build launched process, And we've burn, inside we've

time this had I've a off, said build you before, remember, X.X minute XX started Gen to We a cycle battery.

on like with production we are And the down of a the the built And line that X% to this at comes that coming batteries, we to minutes move off we're initial two of page, the day, that forward. performing meeting batteries believe as are we semi-automated prior we take we minutes time than First path showed cycle specification. scrap. and have four less line the ones on

to to Now in is the of and test. nothing start in to the But Turtle doing these operating going put in get Creek the them. out batteries We're what field out my team viewpoint. is we're going them short amazing

before, cube. same sell sell We this just an that about you time, call I Eos system. overall the ZX talked don't At batteries, you

If strings you a inside out run of to middle field. our that that's look into picture, go would that us cube the at starting

management other in a battery about in Now And trying do to whole than with software the Edison, been the wide a for we decrease operate but battery lot do charge system we're time we to -- voltage that. in what the a but output developing our and battery reduce to we R&D doing not lot to range, performed. increase of do facility, The does, we allow is users. a individual very again here end wide of finding team to allows we've has number and of here Jersey over how your our a a and is facility, just it New operate trick system. your system spent simple differently increase system. system that flexibility hours, of the management It's we what throughput time technologies as across What simpler our out that temperature allow in discharge battery spent

of right, long field. that We’ve far that's controls to versus same on time, some design all to good how again new lead logic the that. of the going the get manufacturing items comes lot in software we're but our on of We Well, Turtle I spend line the At the manage we made that's around into progress investment developing timing a purchases the We're midst this, are getting around making we in back go and around where factory the state-of-the-art the the and product line feel that in out about about Creek. process. of this the robotics. really of timing the in questions

about out where before It's an field. I pipeline turn the yourself to to yourself in Nathan to laboratory. profitable industry in commercial prove this to has in everybody you prove is not the talk have remember this here the over is, What becoming

over everyone the listening forward, our to that for got going compressed in you the field we're and we second keep then details but who's some the through path where the it doing, then the very And want Thanks financials same more operating challenges really I trying on perfect we a ZX scale, We'll on are. good customer at cycle to we've around the our to automate, then in as to quarter. for and sites. we're walk time. profitability do updated feel I Nathan, turn around move what So out today. to pipeline, around get to time, also about

our I morning, to focused about take bottom to Good our are path top-line. everybody. want we moment Joe. profitability. how but improving improving to Not line, our also we're Thanks, on explain we only thinking a are

in begin getting gross be to operating know, nature expenses profitability we the profit. fixed which to step economies As can scale. From our tend we positive achieve point, you is of this to cover to as more first

a for shortage expected of long at see storage with over duration This are the sales demand graph, market. Looking what this combined of here you is prices is to currently market increase in increased a manufacturing time. result capacity

which following price of expected to at into in order the a a realized these backlog to the foothold prices of increases baked are sold in and earlier be of projects Some marketplace. dominated are delivery already secure some our were lower lithium

As see our and secure technology domestic credibility our The in the to credit financing we over XX% we to the expect content establish is expect time. bonus our manufacturing helping IRA’s expand and pricing to market needed for our customers not an capacity, see benefit content potentially their credit. added assets, added With storage only levels, overall for this qualify XX% in to their tailwind. projects we domestic but increase this

COGS, are planned focusing fixed allowing our absorb one continue leverage. our cost line. throughput, us With first we initiatives and on taking to company gain is gross would increasing, expect higher top profit of place, to of our cost-out scale to as sales priorities we prices of on enable This costs of operating product. Moving while in the more out the the automated reach breakeven

discrete are getting program essential cost kilowatt lower to of supply tax to our includes cost profitability. XXXX out, another to benefit product. All costs, or density is Eos us manufacturability energy production that of $XX available these for taking our credit. either Our the anticipated top On hour goals per seven are the improve to of three increase projects

able storage for of produce have to we systems, half the to are year. an in first already begun this benefit we the as COGS, As we which realize offset accounting

our accelerate essential credit achieve not we we certainly makes orders. tax to acts deliver profitability. the our economic our backlog out sense costs, and Despite curve still and added believe improving progress While early us will down to backlog to benefit as breakeven, do We is over come the time. this $XX margins credit, are it we business to believe without we to even an this but tax help driving it path see on expect making on cost as negative

quarter, page going gigawatt lead Starting of now to buckets, through page billion of generation, Slide the classic quarter. are on This backlog. on the previous our of X. many broken into Moving of side left the out storage, is the pipeline was you I'm the key which, lead you page that I'm to three up end XX billion, with. walk current and sure from at generation, pipeline $X.X hours $XX.X is familiar representing

stage idea generation which for on. drop pipeline. they us here about an lot our in there for We yet do this a out not a as our You generally, to should a lead project count progress as think customers into use churn have do coming current pipeline. with technical of in And quote case us or things not is to

we our a use does then Moving provide to non-binding a case to giving technical in a One, to define do proposal have customer, the the pipeline segments. pipeline. technical get we Two, which a And to letter right, use we leads call three, we current have it provided quote? And we case? a them we us signed pipeline where have technical of something have three a quote. intent? do not We unless can non-binding

from there as get is which Our with to an to goal represents materializes, sign choose non-binding they project to agreement, technology. Eos then LOI and plan customers if their a the us,

quarter. from is is pipeline and current $X.X now prior $X.X billion billion up the Our at

representing converted orders We roughly billion From $X.X into over is our LOIs to into there, $XX to have orders, XX% over increase last We intention projects an time. X in to added which million the currently from booked signed hours. get materialize of be expect then versus LOIs, backlog. booked quarter, gigawatt

revenue, backlog. some total of long-term X% service the as backlog at million value than of The represents less of our June XX, $XXX which including stands

projects We in grow revenue expect service as to more become operational the field.

small we order longer a in two considered backlog. that qualifications met new and QX, booked industrial to California, During removed no be we projects our in

IRA pipeline to as believe our is While we to operation increase may factory feel we additional waiting tax continue see well we credits. in many in as our be on potential state-of-the-art clarity large didn't see orders quarter, during the the customers strong, and a

of that uncertain to exercise is Each has the sometimes or in our so change our us factors. resulted We a has This to backlog. in each backlog. assessment projects unlikely that Doing a assess booked case, in backlog which we was a quarters. removed order come being quarter, materialize adjust last we to executed, been the of may in from about project past the judgment reported two our requires view health

While previously of customers. shipped of the California in X.X IPPs our US which hours, industrial developers, markets, is and markets. Over utilities, the representing to other includes current XX% backlog we've XX customers, products with and international backlog and gigawatt XX across mix our a customers, remaining spread ERCOT XX% of consists

these an storage a intrinsic of then the deeper be for developer a of queue. amount pipeline customers environment, deliver have We of let's types today's and is approval well the to price a back MSA an Bridgelink the and can MSA important has first to are to to of essential a in a that management We the interconnection year. interconnect hours size in dive March have affiliate Bridgelink power This on solar the of us recently has the where of year. to backlog, take have in be into its and This Now we In interconnect X that were while secure, beginning of increased because alternative LLC and grid. able Difficulty] certain is its others gigawatt MSA seeking will is was multiyear Bridgelink meaning settlement these project of projects confidential ultimately larger few them for [Technical these confirmed auction. storage built. some with take with lender, they that Bridgelink are June that period XXX-megawatt projects and Bridgelink Bridgelink. financing reached our informed projects. informed assets last of sold by in projects over and in Commodities its value, a a related signed of the number an were of believe a not at we a locked last three-year actively overall interconnects, received years hour that with

the as added remaining Moving totaling XXX-megawatt two hour with ground the Texas to projects North year. hours Texas into Of we which later of was in entered of In gigawatt scheduled two included supply this a we of large agreement pipeline QX hours XXX-megawatt XXXX, IEP. infrastructure fund, this, to was we Control the on storage, project letter the on LOIs. to projects currently have an in anticipate American of the delivery to X transferred intent. a summer, with and first this for breaking backlog,

Carson Hybrid customer for is another us. significant

gas We delivering peaker that access turbine Construction expected co-located California have power deliver in as fall our high with that a project construction California this as the to to active grid soon to we meet is begin plant products. an the site is the demand. can is to summer

a have has our hour included XXX-megawatt backlog. received in we project is approval addition, In its with and interconnection Carson that recently

We have payment or both received contracts. down on a deposit

are recent have as have set that and production safety been and the leading expect pursuing York. confidential signed storage anticipate that we potential. And are to multiyear news, the Northeast permitting our in in customer coming this with MSA. product have under actively cash schedules storage to systems. is the of the The market Next, in growth We POs that of other a projects and alternatives price customer issued MSA this relative lock-in a fires we given is New has to significant a us solar developer our currently of

is and of we the a that of utility which the is in with another PO X finally, signed This is commitment it pipeline team the one our the of for a which to of of And long-term This utilities of as the customer confidential and the gigawatt in XX-megawatt an very The has the smaller Eos' behind largest opportunity for category, operators along LOIs/firm energy utility our IPPs included important meter and deliver the to balance to US. in our has in to combination for agreement and with energy meter backlog project, we world. storage deals, their the up our of backlog capability project hour a developers, investment-grade volume, is this both first front framework storage in hours one of expect have largest utilities. later demonstrate large the year. represents technology

Now structure we capital going to forward. where as fund to to XX. our individual manufacture to terms a are early raw on receive approximately we final begin contracts standard to high so material cash received want it form are, deliver of to prior cash customer customer Slide speaking, course, to negotiated contract receive delivery. template expected as of in to cash of through Amounts order our each the the that the supply working we and walk agreement. This purchases. we to moving the In expect offset flows systems, page customer is structured relates of Generally business, strive to storage needs XX% subject

looking the to a commercial right-hand intent, side Now walk page, all way of the you operation page. generally we the see process of through on signed of from the to letter want I what the at

of earlier, before As our letter a deal backlog. stage represents in last a intent pipeline gets into mentioned the

order. the as customer side pursue wins. of customers You on Eos If the should agreement developer in aligns To LOIs wins, out of with has in this the marketplace. non-binding a criteria a never about they for a same and think us clarify, meet projects especially the that case the stage booked the our our table, interests as

is the more proposal directly the projects. definitive be see formalized agreement each provided active MSA. detailed agreement supply customers go agreement We master that and a orders discrete or into allocated and which PO, which customer a our have typically cash can and can MSA a with a are an our or smaller, milestones, qualifications, be to they LOI schedule. to contract. can are you each a certain for in supply of meet production MSAs skip different internal before happens or a can in pay any downpayment next What deposit considered require they Alternatively, POs sometimes booked slot

to an You specific should a capacity that storage MSA period over multiyear amount think a commitment purchased a being of as of agreement a of defines time. defined

it time then As Even individual are those We specific POs to MSA downpayment. case project progresses under capacity In a multiyear receive a us issued identified, and planning. up often individual a we POs projects with XX% an total of When X% would purchase MSAs, helps a expect deposit as we specific be materialize. and/or to a cancellation with executed XX% contract fee identified, the order, long-term the then get of of MSAs. small to have projects receive price MSAs. not when if usually our does multiyear are

purchase proposals, some increased We capital our MSAs and needs expect of cash portion of result significant offset in active such source of a to payments to working orders. LOIs eventually be

expect receive XX% price another manufacturing the we during Next, to contract of the stage. to XX%

is the again, pay agreement. customer, and specific ask our is the of our to of by rather portion when recognized the fulfillment determined applicable passes the based necessarily manufacturing the to this or recognition on we're During their sourcing of meaningful cash milestone additional manufacturing customer. when raw cash ready not cycle, to A the flows determined does revenue the that Revenue control obligations the systems terms to but is materials, stage, customers ship. and/or we prior a cash follow product

XX% placed received At Next, X% to in past like we receive that out XX% commissioning, item commissioning this opportunity is begins mentioned revenue. and service the to we expect when system point I'd would to last long-term the after fully in the to systems site point, briefly XX% delivered. complete have an are and another installation is be the operation. Eos is and for

as years. offer a agreement, a two-year standard as contracts go XX option provide to the service out warranty, can which customers While long long-term our we generally also with purchase

As begin this get we revenue of future. in increasing we systems expect the an more to to and operation, be cash in source

improvements Now very for on let's an move proud was on become the down heads to the expect better quarter I'm keep the and day, factory we to to time. $X.X of financials financial second systems Revenue quarter employees results. ZX of second these Overall, important to our continue we our transition and team, over Each focus our we quarter into million our revenue beginning production. was X.X we before into our as the as the Gen our market. than reflect and last the quarter for begin recognized getting the day ZX before systems

by of Cost of the in item, investment was goods non-cash quarter partially quarter related the compared by for a $X.X depreciation. million partially was decrease associated year, to increases non-cash project. primarily XXXX, $X development. a in $XX.X sold reduction $XX.X to slight quarter stock the compared and ZX Pine by commissioning second million a million, offset Gate a was ongoing which, driven second last offset R&D by the is with in services, driven million, compensation $X.X of of decrease million a decrease unit volume, costs third-party

$X.X we which financing for senior these with functions Trinity was was expense facility of by the quarter year, the term equipment the $XX.X than as of second $X.X Interest $X loan of for decreases was quarter driven million brought items, non-cash quarter, million, consulting secured and several driven SG&A the million including in expense of which outside lower primarily Capital. the is $XX.X million prior in-house. the by million

which loss to convertible $XXX.X a non-cash excluding $XX.X improvement $XX.X million net million of million non-cash the our of related is and was other or items, with loss interest was notes. amortization expense The from a $XX.X year-over-year million, operating XX%. The resulting

give on update an you company full objectives. year against Lastly, I progress our our will

us much in had million half very was work a we booked goals. We quarter, in pipeline for do order opportunity customers. our there's $XX.X our to a orders increased quarter. the reach of and And $X.X quarter by with first lot Second XXXX, in to transitional during second three still billion of the

lot, a initial like the Difficulty] largest project in sound larger [Technical up our and framework a accompanied was customer to a an another not repeat gigawatt may was with pipeline. customers by three While included for agreement is of which X one order

new a our intent there for of believe five a letters XXXX. XXXX X.X during $XX positive energy signed also in We confidence If our to pipeline. first our to the long-duration nearly our booked a on product application, orders objective storage ability our we line see sight billion for of receive achieving half gigawatt total is with to projects. of in We loan of and increased deliver expect we customer outcome hours

remain Next, to on million track towards $XX objective. revenue million we our $XX

recall, the the you QX, line of year. was lower range and the that pushed If contingent our if running automated up automated next in line upper getting on the was end said end into we while

now are of for the range. the We end lower tracking

the first million. of of half had revenue XXXX, In $X.X we

As expect currently we we to be QX. year, think remaining about the rest back-end of revenue weighted the in

binary recognition of for With as be two at the is when the the one can our exact our opposed delivery revenue revenue produced, majority somewhat time occurring or timing depending objective projects. product year on of of the delivery to large

revenue potentially the recognition able believe push the year, objective we we early some revenue specific this our into criteria XXXX. be for to of will revenue could achieve While

we we have have Lastly, in on have continues our projects cost and hit cost-out to while that key it year-end initiatives stay line objective, to far, sight two Thus we focused the metric. for into further should come on track key believe this the achieved projects seven we remain XXXX, of XXXX. And noted, will cost-out. of team be for we discussed

Operator, for I time operator turn over the want that, line please now thank today. and open to their With I everybody questions. to listening the like for to would questions. for it for

Guggenheim. from [Operator Our first Instructions] Osha Joseph with question comes

Your line open. is

on wanted Good key on earlier challenges Joe. for Hilary more morning. your any if could you've actually first the key kind And if some on been you just This to manufacturing is learnings touch share detail any of transition far, across? there's of ZX. come thus just I that of on to the comments kind

look, every phase this, I learnings. Hilary. Good there's Yeah, mean, morning. Hey, at of been

a lower cost at and manufacturing doing the the position of I accelerated the time, was think at discrete development what processes the first. ZX same

our where on filling we've if our building through. those of technologies started then we've and each the the into at bipolars you battery, as So integrating one and like line hub changed bipolars, the gone look we

other process process things, that So yield cycle or higher coming out learn as capability a gave better of the technologies faster overall found us we a time. either a we at

you start So the it A we this of was that done. it batteries. and of changes here work at scale, transport production inside product. learning And When do has out work lot made you're lot of things a Edison technology a trying of is the in we're lot where design team bring done that you then to prototyping there. when

bipolars we things tops designed the between go slashing, So potential when causing on sea there the the way by were could fixed. electrolyte truck where that the cells of it and a up that were in having certain or batteries we it in that causing you're imbalance wound transporting

as you is material positioned, want manufacturing the material is going one how to do of which in most your cycle want out you lay people reduce where where [backs] you of start flow want one, last processes factory, do (ph) the one into to time. much the the you each have we learn do important positioned, to then And the

as page, the battery line through the can the said is the to this, said minutes. line gone flow of half semi-automated team and is the finding. that with we've continuous as some as We done we four on things of So I -- think that we on the the

it did What process. What a you learning we end off need is this learn? to truly you need every what change? your So Because is to truly make do do and job better? start shift, where, we with

commercial when only at little we've a been for really production here week in about bit a over you mean, I think earnest.

So on the factory going where to learn every make and are day, that's people the you're batteries, most the floor going that us building from better. to the

drive just to on then the some provide some for And wondering you transition Great. we'll I cost-out to if was of just you to could margin? start positive quickly context initiatives, as look and how see gross that buying the execute

on happy sure, little elaborate bit. -- a to So that

improving the also cost-out some If our chain. really supply improving got areas. different battery, at in then It's density supply the you look and efficiencies energy initiatives three touch that chain on the we've and of It's the identified, manufacturability. different

already of And cube. And we these volume said, two have effect of these, around like we some our are on accomplished. now, it's putting been with discounts specifically, into

So that's a supply chain-related item.

density battery. the is the overall improving one of power Second

fully that So that on falls dependent now automated in other the There are These are a things efficiency. second category semi-automated line. to even are of improving the energy on line. getting we cost-out do that our initiatives can

You us into fully the won't achieve next [Technical year. cost-out Difficulty] see really

to hundreds Electric, here day on thing managing looking and going out the prior and, we product. our very that X% time at Hilary, a old. I'd and I And cycle product every mature team through add a Eos, But lines always finding are – productivity productivity cost go to I were ways General to learning that at This working updating this, getting Eos, other cost--out every of ideas. here, X% as at we're pipeline, reductions years you year the and right? So tell right? was be

finding So this of iterative actually more And say, an out. we're of to funnel, ideas just improve competitiveness cost bring the and field. product, you in see, how as take a the end ideas to, and right? the the back want and to the process out on it's and this. to in, we you nose be ideas operating where start got you think just I our You out to starting start to find is We ways put to keep building grindstone more what realize to keep going

Joe, address question. to I As was your didn't I listening realized fully I

get margin the gross about we I asking until line. the efficiencies breakeven. were breakeven won't say, gross You we automated fully would margin of achieve

of of I of that Difficulty]. So timing that's And how in the think it [Technical dependent would timing. terms capital on somewhat is

questions. Great. Thank taking you for my

Thanks, Hilary.

you. Thank

question Christopher B. Securities. with Riley from Souther comes next Our

Your is open. line

compare the manufacturing? cycle Hey, compare out times up you called rates of for the here scrap frame this guys. initial the saw that semi-automated please can what you just ramp, with less following prior stage with some X.X? metrics what XXXX? to post ZX today we and to cost three automation you on Gen the called reduction Gen can how update that is initiatives the cost X.X you you And about. BOM the on This talked than four-minute be X% out the Maybe us How and to do those for all of would kind full with

Right, right.

The where, and was X.X range well, stack our day, in in we'll at welding were it's say, you were doing done were Look, XX I the month is I end continuous that Gen we're of perfect the with Chris. important XX% "Do days just night sitting difference. of nine-day day. which doing We was the process. talking of that look wells. were it's a also yields about surface the has our we it Gen a those office were talked that been about same wells, at we're commercial think there's infrared -- infrared the the good doing infrared hey, this. you on up, remember time sitting went first the and in the to thing an most an mean So, you X.X, we for XX team people were and as as end well. week trying you It production, where was, When our first area at largest through the we Gen day of think and at the And like the X.X?" when mean this I we

size is doing doing technological one the we're But you don't XX wells, of doing paid battery that. get marvels. no else by for the So doing

cycle go four probably we're do per and this talking minutes, less a about hours with time -- doing So -- doing what with you're you're one, handling. X.X through at more than lot you material XX being now the saving battery as

and look, think I get the then we are I -- and think -- and where the we as performance. can look better through actually the at go we from rates On scrap

here think he's hour that I is have visual thing the management they our got that the manufacturing on, start-up. operations hour what the to entire team leader, is paying in to last reports prepare do new focused dividends here of to in the we've the each done time and by it's stations. months We've one ourselves used their grow in company, the three

it different totally on So we is what X.X. had than Gen

learned Now is, would what I we a Gen X.X. on lot say

a and not cell-to-cell a battery going good to the about think leakage manufacturing to that -- sealing X.X, from thing sealing on other. product standpoint cell standpoint, remember one lot we learned a need electrolytes Gen design I having having from technology the a of biggest all we of the cell-to-cell and

Like, ZX. But is field us to system amount to more and So lot is up allowed optimizing the At tremendous out getting time battery. we much on what mechanical field, the that's we that efficient. a and said, and managing and a ZX time, the really we software, we on design And important. of with about performance. spend very talking controls what provide the learned operating, that the containers with learned same sealing X.X around the in come a system, I as Gen

he to how software done it system battery introduce Our management nothing out what have short his amazing. is on work, this leader, off prototype [Pranesh the of we've development have and been of and (ph) team of and and coming Rao] able technology

of a have work do. lot we So to

move still know and did exciting We're to about development us we You still around how we really there's to we -- how very don't but unknowns challenged started -- be of it's for this with going and where going. forward, product we the it. it's as think

proud with And way for work be in people, months Chris, And me, than with this, had when amazes less you that's say will, I'm XXX first and why we're this also think I team prototype production doing say it months ago. about XX like company. we that's to XX was to our the the later you I production why if it, battery,

think [indiscernible] meaningful BOM more the kind you initiatives three cost, post reduction can for today what is Got it stand where And get? this it. just cost does the the versus maybe today? versus you And that out like, year, called on you of

we're was cost-out hour cost said the on designed actually I with got this hasn't kilowatt I containers, started savings And of coming historically, then we've in changed where P&L what like battery the Difficulty]. are this contract basis at this which entire don't initiatives our is we've mean, of a the system Difficulty] we completed. through say the Gen two completed we focused that negotiated year, half think the of picture And seven on Really, [Technical X.X. for -- realize until which from the or fully we've case when [Technical

are much get after is to roll that Joe even have time. chain when there's we as mean, full specifics get continuous mentioned, going continue a But this types cetera, So I into of et in improvement as that's either we mean, And efficiencies the But those point. I supply forward. BOM, to things automation. We'll then over as process. can at going design granularity improvements, that, on improvements, we significant this

build of we I the battery. starting about, Yeah. battery the of that just fact that on your what core do than at launch mean, lower of we seven point form get to that talking is titanium. say is no it's and X.X, significantly think were fair Gen they where the the I factor at projects The the we Nathan have the to

the Chris, look third this these you else. American XXX-person something at chain. building online, is company an building a of factory piece -- like, is going Like, this so as pipeline bringing supply out, with of building battery, a opportunities, seven, So right, this a

can." of a and and to what companies the are the we the on like then at components us, like, and ways reduce both coming up it. are you where of mixing we tremendous TETRA innovate chain other working entity, material opportunity environment Because cost-out doing America a people in say, really formula But there's an to XXX cost, cost. to electrolyte So with I'd optimize delivering "Yeah, total with from going And "Here manufacturing that, know the XXX-person and can doing can saying out we look here with to I'd people American are, -- optimize logistics supply manufacture?" say, cost, say, what

the commitments -- the give activity American as order get as do -- backlog, you towards and what maybe you fact the moving kind like. except process? grown, are people for kind waiting out for make forward? far kind made of your called everything and and DOE the Like, of But all it. on people the in factory us sense -- that of that, in commercial current pipeline just guys shifting saying before in can the sense side, to a are order of current see And Got loan focus you’ve the customers kind loan a the you DOE

make to end. the agreements deliver to going that long-term guys capitalized had we've we number are that, of right? bunch service a we just Absolutely, We've research sure on anecdotally like want the the on to -- you're technology. I and be mean, the it. seen Chris. and they're but you here deliver well of want conversations where We've be exactly We back saying to done to a product also here

think important. is I so And capital

the I look think go is just it field and and and can ZX still and piece There's data at it the test product in [Technical out the folks And a and important and we're out customers successes, we important. cycling very then IRA that's I clarity see around get as customers to. content, the credits. of discussion domestic is additional around think lot Difficulty] talking mentioning third just are that that as

through in increase -- clarity our three those see we as as think customers we things, I So significant three pipeline. should commercial have on a those moving

their kind their at faster is three And how of a the and going decides fact up decision grid speeding when get we're talking bet making purchase company, of that the Like way Chris, technical, in about these I'm we this they're where when of lucky, always years. to is projects, thought they're add connection demand order very the making And they're think XX-year two response. that this a place projects the you're gave to today. and in someone start like get looking someone got to to Nathan's to we've passionate I with about on a things career you -- and I've my the purchasing about if types But market. I I'd doing meet And -- you. mean,

and scale happen making this do So financing and how to Nathan secure So them to to going that deliver as we're of this from them "I'm and to there for there bringing the bet making going show the the need that two project. these company said, my people saying, that's product we they're to the factory showing something manufacturing yes, now." and and what be them the And to and is, sitting years decision on the also as show commitments forward. we that deliver as to going going we the being anything works of both product by to be on the It's able things. make, and delivers, that stand we're as those we've both. got important being and able And financials. reliable -- from a partner to commitments there there be underlying move having a from that we're them It's helps. financing that's we're to doing standpoint But to three

the really Thanks, helpful. Yeah. That’s in guys. queue. I’ll hop

Thanks, Chris.

Thank you.

Our with comes Stifel. next from Vincent Anderson question

is line Your open.

thanks. everyone. Yeah, morning, Good

still did sheet. commitment process? end way, out does on wait So sounds you've which until clock goes OMB just If review? case, that's of start include XX-day on the maybe that pre-conditional I call the Or term new, everything you to the the through would loan the the treasury this approval it, of it to get believe completed your the like process, loan it needed

a in window. say, definitely Yeah. Good XX-day morning, Vincent. we're I yes, would

easier over answer. the getting have couple We further to been weeks. to and in between of some questions last responding They're and fewer

this final that. working very are outside to we're that in approvals not makes have So very that There looking we we're the necessarily and And through, stages been clear believe occur do in is, multiple but questions. it's informed process the the stages been which what me process. of answering at feel final we've of we've from like exactly in

that great of control the But we talk Day, timing Labor like So said, some hopeful got we've we're it. exact about. I by news can't to

the Nathan, Okay. XX,XXX-foot hoping I the really like industry quick. No, dive could that's was helpful, the back though. a deep actually for And thanks then go actually, on to pipeline. view of we

have like the companies as to projects, but in going and have different a the that self-funding are a the both companies structure very structure utility lot market your you be So renewables terms customers you go, financing. of blue-chip far in these of as

I utility customer. not something compare hoping of the they impact the was just me. but projects talk a like of of that maybe delays leads And to those hinted on any might feel that having interconnect, they would call delays, moving that, pace kind pipeline you kind to you want of to then like how those funding So a the couple to the just times them projects? could Is large-scale through ancillary of or about

Yeah.

So Nathan and in. can some fill take these Vincent, of I'll

So Like, their record a they Texas, reserve going very the grid. out the part through the new last into straining on it's for And output that processes their week, is and set to to the on we've the every at day, right? for like earlier, the period look, look of the industry, got came news question, California like of and looks projects going hot the a about in it time get said I here FERC grid on pipeline into last projects you highs, projects almost news great performing. other margins. like

you're through, here it you're these of, in the need happen, future right? we we the move approval. a to energy sense the this not discharging while on project installing not for assets grid And of ground So to new charging make you're slows not on and projects, quickly and down need getting reality, to process you're that breaking waiting the and the project, make

And through. is find state to got and as to entire a that. government to need we approvals projects and be policy we the So get the way faster approvals industry, happen including that the to

customers, to so there look in coming and projects. coming of saying, magazines way this are, talked some with like both, the in you're our want we any like of and Google done, these backlog project do do of up get get of my general, pipeline confidential LOI go on customers spend going Nathan the in out also and -- debt our read permitting, to that equity. spend about once going just look, number those I'm all more and here's question blue-chip pipeline. to I'm working But your the or the doing the you to and On do developers development, and more part see you're and in your of could through money through things time us see paces putting online. market, that the being trade finance storage in some where out get project development projects going And and I I with project. work and my to either Then and out or other

partnership do making out a process through through that have and go So projects. their then with that get the you're people and to then permitting and work

a an had and have were American to types who way. together. that and people of And have let's the entrepreneurs do through I come see opportunity, and getting assets. now developed wanted the guys those [indiscernible], saw are we worked an back, -- this When we've those idea, by install ready story, are we opportunity to an great this

road Board, in side the Look, process industry. our the was in we players, I the Jeff these. through of people a of and deal that or Financial the bumpy when help Eos, like, at it when you from industry, a to Services the and you're that put we're that them these at got work and Siemens and we where LOIs GE, the GE was, work to look these more that on Services backgrounds, the all the got at backlog. know So Capital, to was why it's through these technology their get contacts, turn got our know who got opportunities, to trying was and them a there's GE GE would CFO be It's financing background to Like on a there to do people to a bumpy into take projects, these CFO some because try time, that's then get and Energy We've big my We side. side accelerate whether road you've by Financial that Nathan's that have through who -- online. bring you've background them Bornstein at in to road. you of bumpy together

all backlog real you've But [of firm got where that revenue. that's that's have we're work believe on in you've enough order, And they're started not where the And got betting deliver, put to that do to the Eos. way guarantee Backlog got at Chris’ an to on starts. through. their it. deliver translate to capacity and hard we to such] It be is just project that Then going means goes where project, that taking back planning before to going your we're and to is -- you they're we I a somebody a career (ph). start you partner into ability XXX% a to giving doing around question

That’s very appreciate I helpful. it.

that’s all I think from me. Thank you.

Thanks, Chris.

remarks. for like back I'd the turn you. questions. Mastrangelo Joe Thank further to There are to over no closing call

or to or Energizing, a on the on, a in future as lot that company, everyone, but A of of the every the new in what by we're be today. I listening happens here. shareholders Thanks, the to continue your time -- at that I'll meaning that. people the our call out extremely exciting great product day be and work and making of Edison for come same Turtle power we're as also today. Thank the make what Exciting we energizing. able started. focused thank say as time. for Eos possible that every to creation the going future, with market work demands, going to to to to think for but field, value the day, you. to an into dual about XXX-plus this competitive Creek have long-term that and market to build company, whether it of helping On be excited the energy you end And I way do again, behalf a And bringing

does conclude This for program. you participation. the your Thank

Everyone, have great You a may day. now disconnect.