ab 28 November 2025 First Read Global Research China BESS system price has stayed largely flat WoW at Rmb0.50/0.46/Wh for 2h system (AC) and 4h system (AC). Grid-Forming BESS system maintained Rmb0.10-0.15/Wh price premium vs Grid-Following BESS system. Besides the front-loaded demand from the US, we believe the strong demand from Europe, Australia, Middle East, etc could sustain. Strong installation data in 10M25 According to CNESA, China BESS installation reached 35.3GW/89.3GWh in 10M25, up 56%/60% YoY. O ...

Core Viewpoint - Eos Energy Enterprises, Inc. has announced a registered direct offering of common stock and a concurrent private offering of convertible senior notes, aiming to raise approximately $458.2 million for repurchasing existing convertible notes and for general corporate purposes [1][2][3]. Group 1: Offering Details - The registered direct offering consists of 35,855,647 shares priced at $12.78 per share, expected to close on November 24, 2025 [1]. - The concurrent private offering includes $525 million of 1.75% convertible senior notes due 2031, with an option for an additional $75 million [3]. - The completion of the registered offering is contingent upon the successful closing of the concurrent notes offering [5]. Group 2: Use of Proceeds - Proceeds from the offerings will be used to repurchase a portion of the existing 6.75% convertible senior notes due 2030, with a total repurchase price of approximately $564.6 million [2][4]. - The repurchase will include accrued and unpaid interest and is subject to various market conditions [4]. Group 3: Company Overview - Eos Energy is focused on advancing American energy independence through innovative energy storage solutions, specifically its BESS featuring Znyth™ technology, which is a safe and scalable alternative to lithium-ion technology [8]. - The company's energy storage systems are designed for utility-scale, microgrid, commercial, and industrial applications, providing long-duration energy storage capabilities [8].

Summary of the Conference Call on China Energy Storage Industry Industry Overview - **Industry**: China Energy Storage Industry, specifically focusing on Battery Energy Storage Systems (BESS) [2][5] Key Points and Arguments 1. **Policy Support for BESS**: - On November 10, 2025, China’s NDRC and NEA issued guidelines to enhance the consumption and dispatch of renewable energy, targeting a significant increase in renewable power generation by 2030 and 2035 [2][3] - By 2030, the annual power demand addition will be primarily met by renewable energy, with a goal of ensuring consumption capability for 200GW of renewable capacity addition per year [2] 2. **Capacity Compensation Mechanism**: - The policy aims to improve the capacity compensation mechanism for BESS, which is expected to diversify revenue streams and enhance returns for BESS projects [3] - Inner Mongolia updated its provincial capacity compensation to Rmb0.28/kWh for BESS commissioned in 2026, a 20% decrease from Rmb0.35/kWh in 2025, valid for 10 years [3] 3. **BESS Price Trends**: - The price of BESS systems in China increased by 4% and 2% week-over-week to Rmb0.50/Wh for 2-hour systems and Rmb0.46/Wh for 4-hour systems as of November 3, 2025 [4] - Despite a 12% month-over-month decline in bidding volume in October, strong domestic demand for BESS is anticipated in Q4 2025, typically a peak season for renewable project interconnections [4] 4. **Valuation and Market Outlook**: - The report maintains a positive outlook on both China and global BESS demand, expecting manufacturers' margins to recover due to improved project IRR for downstream customers [5] - Companies like Sungrow and CSI Solar are expected to benefit from robust global BESS demand and an increasing order pipeline [5] Risks and Considerations 1. **Downside Risks**: - Major risks to the energy storage industry include slower-than-expected growth in domestic renewable energy capacity, smaller-than-expected peak-trough electricity price spreads, and potential import restrictions on China-made products [7] Additional Insights - The report emphasizes the potential for increased market participation in renewable+BESS projects, which could lead to higher utilization rates and improved pricing dynamics for BESS [2][3] - The anticipated strong demand from international markets, including the US and Europe, is expected to sustain the growth of the BESS sector in China [4]