Energy Vault Secures $300M, Analysts Warn of Potential Downside

Energy Vault Holdings has secured a $300 million investment to expand its "Asset Vault" storage projects internationally. Analysts project a 30.31% potential downside from the current stock price of $1.44, and the GF Value indicates a significant potential downside of 51.92% from the current stock price of $1.435. Despite the new investment, the company's average one-year price target is $1.00, and the consensus rating from two brokerage firms is a "Hold" status.

Energy Vault Holdings, Inc. (NYSE: NRGV), a global leader in grid-scale energy storage solutions, has announced a significant investment that will accelerate its international expansion. The company has secured a $300 million preferred equity investment to fund the launch of its new subsidiary, Asset Vault. This investment will enable Energy Vault to deploy 1.5 GW of energy storage projects across the U.S., Australia, and Europe [1].

The investment, which is non-dilutive to common shareholders and includes equity participation milestones, will support Energy Vault’s IPP (Independent Power Producer) strategy. This strategy involves building, owning, and operating energy storage assets, with a focus on long-term revenue contracts and strategic capital [1].

The $300 million investment will be utilized for project development expenses, project acquisition, and equity investments to support attractive project financing. The investment is expected to generate $100 million+ in recurring annual EBITDA in the next 3-4 years as a consolidated subsidiary, adding to Energy Vault’s existing revenue streams [1].

Analysts have projected a potential downside of 30.31% from the current stock price of $1.44, and a significant downside of 51.92% indicated by the GF Value from the current stock price of $1.435. Despite the new investment, the average one-year price target is $1.00, with a consensus rating of "Hold" from two brokerage firms [2].

Energy Vault’s technology-agnostic approach and flexible business model span energy-as-a-service, project development and sale, and long-term asset ownership. This allows the company to capture value across the energy storage lifecycle and maintain power reliability [1].

Upon final closing, Asset Vault will be formed as a fully consolidated subsidiary, leveraging Energy Vault’s operational expertise and integrated development, EPC, and asset management capabilities. The company expects to generate incremental consolidated revenue and high gross margins through self-performing engineering, procurement, and construction (EPC) for projects within the Asset Vault platform [1].

Energy Vault’s gravity-based energy storage technology facilitates the shift to a circular economy while accelerating the global clean energy transition. The company’s innovative technology portfolio delivers customized short- and long-duration energy storage solutions to utilities, independent power producers, and large industrial energy users [1].

References:
[1] https://www.businesswire.com/news/home/20250807651517/en/Energy-Vault-Enters-into-Exclusive-Agreement-for-%24300-million-Preferred-Equity-Investment-to-launch-Asset-Vault-Accelerating-the-execution-of-1.5GW-of-Global-Energy-Storage-Projects-under-the-Companys-IPP-Build-Own-and-Operate-Strategy
[2] [Brokerage Firm Data]