Why Did ESS Tech Plunge 19.41% Despite Securing Capital?

On June 2, 2025, ESS Tech's stock experienced a significant drop of 19.41% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

ESS Tech, a leading manufacturer of iron flow long-duration energy storage systems, has recently announced that it has secured sufficient capital to continue its near-term operations and support its ongoing projects. This development is crucial for the company as it navigates the competitive landscape of the energy storage market, which includes major players such as Ultralife, CBAK Energy Technology, and Zeo Energy.

In Australia, the energy storage sector has seen a substantial boost with the addition of 5 GWh of big batteries in the first quarter of 2025. This investment, totaling AUD 2.4 billion, underscores the growing importance of energy storage solutions in the global energy mix. The Woreen BESS project in Victoria, with a capacity of 350 MW and 1.4 GWh, is one of the largest initiatives in this sector, highlighting the increasing demand for reliable energy storage systems.

The strong investment in energy storage projects in Australia reflects a broader trend towards renewable energy and storage solutions. This trend is further supported by initiatives such as Spain's €700m large-scale energy storage program, which offers significant co-financing for battery projects. Additionally, collaborations between companies like Rept Battero and Hyosung Heavy Industries to promote energy storage technologies globally indicate a growing market for such solutions.