Energy Vault Secures $300M Preferred Equity Investment for Energy Storage Expansion

Energy Vault has entered into an exclusive agreement for a $300 million preferred equity investment to launch its "Asset Vault" and accelerate the execution of 1.5GW of global energy storage projects under its IPP build, own, and operate strategy. The investment from a leading infrastructure fund is expected to enable over $1.0 billion in CapEx spending for projects under development in the US, Australia, and Europe. Preferred equity is non-dilutive to common shareholders and includes milestones for equity participation in Energy Vault Holdings NYSE List Co. The investment accelerates the timeline to generate annual, recurring EBITDA of $100 million+ in the next 3-4 years with the current projects in operation and under active development.

Energy Vault Holdings, Inc. (NYSE: NRGV), a global leader in grid-scale energy storage solutions, has entered into an exclusive agreement for a $300 million preferred equity investment to launch its "Asset Vault" subsidiary. This investment will accelerate the execution of 1.5GW of global energy storage projects under Energy Vault's IPP (Independent Power Producer) build, own, and operate strategy. The capital from a leading, multi-billion-dollar infrastructure fund is expected to enable over $1.0 billion in CapEx spending for projects under development across the US, Australia, and Europe [1].

The preferred equity investment is non-dilutive to common shareholders and includes milestones for equity participation in Energy Vault Holdings, aligning shareholder interests. This investment will support Energy Vault's IPP strategy to build, own, and operate energy storage assets, thereby accelerating the deployment of 1.5GW in attractive priority markets. By leveraging its operational expertise, Energy Vault can achieve lower $/kWh CapEx and lower asset OpEx through its leading Energy Management System software platform [1].

Upon final closing, expected within the next 30-60 days, "Asset Vault" will be formed as a fully consolidated subsidiary for Energy Vault's owned energy storage assets. The $300 million investment will be utilized for project development expenses, project acquisition, and both majority and minority equity investments to support attractive project financing. This will enable the construction, commissioning, and operation of energy storage assets, providing additional cash flow streams and liquidity to the parent company [1].

Energy Vault's technology-agnostic approach and flexible business model span energy-as-a-service, project development and sale, and long-term asset ownership, enabling value capture across the energy storage lifecycle. The company's proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies, supported by its hardware technology-agnostic energy management system software, facilitate the shift to a circular economy and accelerate the global clean energy transition [1].

The investment is expected to generate $100 million+ in recurring annual EBITDA in the coming 3-4 years as a consolidated subsidiary, adding to Energy Vault's existing Energy Storage Solutions business. Energy Vault's operational control of Asset Vault, leveraging its integrated development, EPC, and asset management capabilities, will generate incremental consolidated revenue and high gross margins [1].

In conjunction with the close of the transaction, Energy Vault intends to host a Virtual Investor Day to provide a comprehensive overview of the Asset Vault platform, its project pipeline, financial projections, and long-term strategic vision. Additional details will be shared upon closing.

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