Eos Energy Enterprises Inc. (NASDAQ: EOSE) and Cerberus Capital Management announced plans to establish Frontier Power USA, a joint venture focused on developing long-duration battery energy storage projects using Eos' zinc-based technology.

The partnership includes a 2 GWh capacity reservation agreement between Eos and Frontier Power USA, expanding Eos' existing project backlog. Cerberus committed $100 million in equity to the venture and extended its existing Eos lockup through year-end 2026.

Frontier Power USA secured a technology performance insurance framework with Ariel Green covering up to $1.5 billion over 15 years. The insurance policy aims to help projects achieve investment-grade financing terms by providing performance protection for institutional lenders.

Eos plans to fund its equity contribution through a rights offering targeting approximately $150 million, allowing existing shareholders to maintain proportional ownership. The rights offering requires shareholder approval for an increase in authorized shares and other debt agreement consents.

The joint venture will deploy Eos' Z3 zinc bromide battery technology across commercial, industrial, and utility-scale applications. Frontier Power USA is designed to function as an independent power producer, building and operating energy storage projects.

Cerberus will receive warrants and controlling equity in Frontier Power USA in exchange for its commitment. The funding remains subject to certain closing conditions, according to the companies' joint announcement.

The venture represents an effort to accelerate deployment of long-duration energy storage systems, with Frontier Power USA targeting projects requiring 4 to 16+ hours of storage capacity. The structure separates project-level capital from Eos' corporate balance sheet.

Completion of the proposed transactions requires various approvals, including Department of Energy consent and execution of definitive agreements between the parties.