Battery Storage Firm ESS Tech Seeks Chapter 7 Liquidation, Halts Business

what happened

Energy storage maker ESS Tech has stopped operating and filed for Chapter 7 bankruptcy protection after reviewing all of its strategic options, according to a filing with the US Securities and Exchange Commission. Dow Jones Newswires reports that the company has let go of all its employees and officers without cause.

The stock was removed from the New York Stock Exchange in early October and now trades over the counter. On Friday the shares fell 21% to close at 7 cents.

The company, whose backers included SoftBank Group, was valued at roughly $1.1 billion in May 2021, when its merger with ACON S2 Acquisition Corp. was announced. Its product line included sodium-ion batteries, which the company said reduce dependence on scarce critical minerals.

why it matters

For markets, this is another sign of how hard it has become for energy storage makers to survive without steady revenue and funding. The direct impact falls on ESS Tech shareholders, but the case highlights the risks facing alternative battery developers that need large amounts of capital to scale.

market impact

ESS Tech shares: the company is shutting down, pressuring the stock

• ▼ESS Tech shares pressure down — the company is ceasing operations and has terminated all staff

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