Energy Vault Holdings Inc. has entered into a financing agreement with YA II PN, Ltd. for up to $50mn in corporate debenture funding. This financing strengthens the company’s ability to pursue projects in the energy storage sector while providing financial flexibility at the holding company level.
According to Chief Financial Officer Michael Beer, this facility will serve as working capital to allow the company to continue expanding its operations without operational constraints. He stated that this cash is in addition to funds already committed through a previously announced preferred equity investment aimed at supporting the direct ownership and operation of energy assets.
A model built on a dedicated subsidiary
The financing structure calls for the owned and operated assets of Energy Vault to be consolidated under an entity named Asset Vault, a fully integrated subsidiary. This entity will house the company’s storage infrastructure and will benefit from long-term offtake agreements, ensuring stable and recurring revenue generation.
The goal of this structure is to support Energy Vault’s Independent Power Producer (IPP) strategy. By focusing on long-term contracted revenues, the company aims to strengthen its margins while consolidating its presence in the grid-scale storage market.
International rollout and geographic diversification
Energy Vault’s portfolio already includes operational facilities in Texas and California, along with a recently acquired 1 GWh project in Australia: the Stoney Creek site. Additionally, the company maintains a project pipeline of approximately 3 GW of battery energy storage systems spread across the United States, Europe, and Australia.
These projects aim to address the rising demand for energy storage capacity, particularly in response to the expansion of artificial intelligence data centres. Energy Vault plans to leverage this momentum to broaden its operational footprint and secure long-term revenue streams.
