Energy Vault, a pioneering company in the field of gravity-based energy storage solutions, has made significant strides in the first quarter of 2023. The NYSE-listed firm reported securing project awards of 2.8GWh worth $1 billion during this period, signaling the company's continued growth and relevance in the energy storage industry. The awards included $725 million for EVx, demonstrating the strong demand for Energy Vault's solutions. Additionally, the company's “total near-term commercial funnel” increased by over 40% quarter-on-quarter to 11GWh, pointing to further growth opportunities in the coming months.
Despite a 74% drop in revenues from Q1 2022, where the company generated $42.8 million, Energy Vault still recorded $11.4 million in revenues in Q1 2023. Its gross margin for the quarter was 20%, indicating a healthy financial position. The company's commitment to innovation and expansion is evident in its recent investments in Kore Power, a US lithium-ion battery and BESS firm. Energy Vault participated in a $75 million fundraising round by Kore Power in December 2022 and made a second and final strategic investment in the firm during the recent quarter.
Energy Vault's investment in Kore Power is aimed at building supply continuity for domestic US content supply chains, enabling the company to deploy projects with US domestic content to take advantage of a 10% adder to the new standalone investment tax credit (ITC) for energy storage. The company has also announced a partnership with developer Jupiter Power to this end. Although the exact requirements for the domestic content adder are yet to be revealed, Kore Power's domestic production of lithium-ion battery cells and containerized solutions suggest that it is likely to qualify.
Energy Vault's expansion into BESS and green hydrogen has been marked by progress on its first commercial gravity-based project in China and approval for a large green hydrogen project in California. The company's diversified portfolio and commitment to innovation position it for continued growth and success in the energy storage industry. Energy Vault has reiterated its full-year guidance of $325-425 million, a 10-15% gross margin, and an adjusted EBITDA loss of $0-75 million, indicating confidence in its ability to meet its financial targets.
