Frontier Power USA (“Frontier” or the “Company”), a newly established long-duration energy storage development and investment platform, today announced its formation to accelerate the deployment of critical, utility-scale storage infrastructure across the United States

Frontier has received a $100 million direct equity commitment from Cerberus Capital Management L.P. (“Cerberus”) and is expecting to receive an approximately $150 million equity investment from Eos Energy Enterprises (NASDAQ: EOSE), (“Eos”) funded via a pro rata rights offering, allowing participating Eos shareholders to maintain proportional ownership in Eos’ participation in Frontier Power USA

Frontier is expected to be a purpose-built independent development and investment company utilizing Eos’ vertically integrated technology stack to accelerate gigawatt-scale deployment of American-made energy storage technology

Frontier has secured a ~$1.5 billion, project-based, 15 year-non cancellable technology performance insurance (“TPI”) policy framework arranged with Ariel Green to accelerate multi-year project bankability

Frontier has entered into a 2 GWh take-or-pay Capacity Reservation Agreement with Eos, securing dedicated manufacturing capacity for the Company to meet significant demand expected from its current and future pipeline

NEW YORK, May 13, 2026 (GLOBE NEWSWIRE) -- Cerberus Capital Management, L.P. (“Cerberus”), one of the country's largest alternative investment firms, along with Eos Energy Enterprises, Inc., a leading U.S. manufacturer of American-made, zinc-based Z3 long-duration energy storage infrastructure, today announced the intention to form Frontier Power USA, an independent development and investment company established to develop, own, and operate a diversified portfolio of long-duration battery energy storage systems structured to deploy at scale with institutional capital and long-term ownership. Frontier Power USA was formed to solve the execution gap that has historically constrained long-duration storage — where proven technology, manufacturing capacity, and customer demand exist, but deployment is slowed by fragmented ownership, financing complexity, and misaligned incentives

Frontier Power USA is intended to address rapidly rising electricity demand and grid reliability challenges driven by the growth of AI-driven data centers and advanced computing infrastructure, while also supporting broader energy security objectives and the integration of renewable generation. The Company is expected to unify three core capabilities that have historically sat across multiple stakeholders: Eos’ vertically integrated technology stack, Cerberus’s institutional capital and operating experience, and a performance wrap to be provided by Ariel Green, which underwrites Z3 performance. The performance wrap underpins the structure and will allow project debt to achieve investment-grade characteristics at competitive terms. By aligning manufacturing access, development capital, insurance-backed performance, and project financing under a single platform, Frontier is designed to compress timeframes from commitment to commercial operation relative to traditional project-by-project development model

Manufacturers in capital-intensive industries, from aviation to power generation, have long invested into or partnered with development execution vehicles to accelerate customer deployment, and those platforms have generated significant value for stakeholders over time. Frontier USA is targeting to be the first application of that proven playbook to long-duration energy storage.

Accelerated Project Deployment

In connection with the expected launch, Eos and Frontier Power USA entered into a 2 GWh Capacity Reservation Agreement, with the American-Made, Eos Z3 batteries purchased through this agreement expected to be deployed across AI data centers, commercial and industrial applications, and utility-scale projects, drawing from Frontier Power USA’s project acquisition pipeline. Approximately 5 GWh of the acquisition pipeline is under active development with a further 20 GWh of identified pipeline providing significant potential future growth opportunities. Dedicated manufacturing access is intended to provide a higher degree of delivery certainty for Frontier Power USA and supply chain security compared to merchant or opportunistic procurement strategies.

Firm Technology Performance Insurance (TPI) with Ariel Green

Technology Performance Insurance serves as a core enabler of Frontier Power USA’s model, addressing one of the most persistent barriers to scaling non-lithium long-duration storage: lender confidence over multi-decade asset lives. Simplifying project bankability and accelerating asset deployment, Frontier Power USA has secured a firm Technology Performance Insurance (TPI) framework with Ariel Green, a division of Ariel Re and a leader in clean energy insurance. The framework contemplates a 15-year non-cancellable coverage, which will be sized at the project level with a multi-year total policy capacity of up to approximately $1.5 billion, written through a Lloyd’s of London consortium (A+/AA-).

Anchored by Institutional Capital, Extensive Operating Experience, and Investment Grade Cash Flow Profile

Cerberus is anchoring Frontier Power USA with a $100 million direct equity commitment, motivated by its strategic institutional prioritization of sectors which promote technology leadership, resource sufficiency, and supply chain resilience for the United States and its allied partners. Cerberus will receive Eos warrants, as well as controlling equity in Frontier Power USA in exchange for its commitment. Along with the expected equity contribution from Eos, Frontier Power USA can act immediately on a significant near term pipeline of critical long-duration energy storage developments.

Supported by the equity investments, experienced management team, the TPI insurance policy, and investment grade offtakers such as utilities, energy traders, and hyperscalers, Frontier is pursuing investment grade financing provided by institutional-backed captive insurance platforms, commercial banks, and dedicated infrastructure funds, optimized by the offtake profile of the long-duration storage infrastructure assets and regional power market dynamics.

Eos Rights Offering

To fund its equity contribution in Frontier Power USA, Eos intends to launch a rights offering targeting approximately $150 million. In this rights offering, existing Eos common shareholders, including retail investors, would receive a distribution of subscription rights to purchase Eos securities and corresponding warrants. The rights offering is expected to be structured to limit dilution to participating Eos shareholders and allow them to participate pro rata in the Eos investment into Frontier Power USA.

Strategic Rationale

Frontier Power USA is expected to represent a first-of-its-kind long-duration storage platform: a vertically integrated BESS developer and planned IPP with direct OEM access from cell through software. The newly-formed company will have direct access to an OEM at the cell IP level, through module and system architecture to the proprietary software layer, creating end to end integration that reduces the risks in third party assembled supply chains. It’s a purpose-built independent developer and IPP working in direct partnership with Eos funded by institutional equity and market-leading debt financing providers. Frontier is expected to be a growth engine, with cash flow generated by operating projects systematically reinvested into the platform, funding new project origination, accelerating Eos equipment deployment, and compounding the value of the integrated technology stack.

Management Commentary

“We expect that Frontier Power USA will bring the speed and ability to scale that the grid urgently needs, at a time when the opportunity set is being driven by energy security requirements and sustained growth in power demand from electrification and AI. By pairing the company’s execution and deployment platform with Eos’ differentiated long-duration storage technology and expanding U.S. manufacturing base, we believe this model creates a credible path to delivering storage capacity at scale. The platform is designed to translate proven technology into reliable, deployable assets that can keep pace with the system’s evolving needs.”

— Aaron Maczonis, Managing Director at Cerberus Capital Management.

“As energy storage projects scale, bridging the gap between technology innovation and associated liabilities becomes essential. This transaction through Frontier Power USA shows how TPI can play that role, supporting both bankability and repeatable platform growth across the U.S.”

— Jamie Daggett, Energy Storage Practice Lead, Ariel Green

“Frontier Power USA is designed to change the speed of long-duration storage financing and deployment, allowing customers to have faster access to capital and deep expertise in project development. We feel confident that this will give Eos a new growth trajectory as we continue to expand manufacturing capacity. The platform pairs our integrated technology stack with institutional capital and a lender-ready performance framework that is designed to deliver what matters most: electrons to the grid. We believe the planned structure maintains shareholder alignment by allowing Eos investors to participate pro rata in Frontier’s Power USA’s growth via Eos’ ownership while ensuring project capital is governed independently and on arm’s-length commercial terms.”

— Joe Mastrangelo, Chief Executive Officer Eos Energy

About Cerberus

Founded in 1992, Cerberus is a global alternative investment firm with approximately $70 billion in assets across complementary credit, real estate, and private equity strategies. The firm invests across the capital structure where it believes its integrated investment platforms and proprietary operating capabilities can help improve performance and drive long-term value. Cerberus’ tenured teams have experience working collaboratively across asset classes, sectors, and geographies as they seek to achieve strong risk-adjusted returns for investors. For more information, visit www.cerberus.com.

About Eos Energy Enterprises

Eos is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. Eos’ BESS features the innovative Znyth™ technology, a proven chemistry with readily available non-precious earth components, that is the pre-eminent safe, non-flammable, secure, stable, and scalable alternative to conventional technology. Eos’ BESS is ideal for utility-scale, microgrid, commercial, and industrial long-duration energy storage applications (i.e., 4 to 16+ hours), and provides customers with significant operational flexibility to effectively address current and future increased grid demand and complexity. For more information about Eos (NASDAQ: EOSE), visit www.eose.com.

About Ariel Green

Ariel Green provides Technology Performance Insurance (TPI) for the clean energy industry, deploying capital through customized long-term and non-cancellable risk management solutions. As a division of Ariel Re, a premier (re)insurance business and underwriters at Lloyd’s, Ariel Green is supported by the world’s leading insurance and reinsurance marketplace. Ariel Green brings deep expertise and a collaborative approach to developing insurance products that enable clean energy projects to secure financing, get built and begin operations. Learn more at www.arielgreen.com.

Contacts

Cerberus Media: media@cerberus.com

Eos Investor Relations: ir@eose.com

Eos Media: media@eose.com

Ariel Green: www.arielgreen.com/contact/

Forward-Looking Statements and Important Information

This press release does not constitute an offer to sell or the solicitation of an offer to buy any subscription rights, common stock or any other securities, nor will there be any sale of subscription rights, common stock or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of Frontier Power USA, Cerberus Capital Management, L.P. or any of its affiliates or funds, Eos Energy Enterprises, Inc., or any other person. No securities are being offered or sold pursuant to this press release. Without limiting the foregoing, this press release does not constitute an offer to participate in, or a solicitation of an offer to subscribe for securities in, any rights offering by Eos or any other offering of securities by any person. Nothing in this press release shall constitute a solicitation of investment in any fund, vehicle, or account managed or advised by Cerberus or its affiliates. Any rights offering by Eos, if commenced, will be conducted by Eos in accordance with applicable securities laws, and investors should refer to Eos’ own public filings and offering documents for complete information regarding any such offering. Any rights offering of Eos will be made pursuant to the Eos’ effective shelf registration statement, including a base prospectus, under the Securities Act of 1933, as amended, and a prospectus supplement (and the accompanying base prospectus) to be filed with the Securities and Exchange Commission (“SEC”). Copies of the prospectus supplement and accompanying prospectus relating to any right offering may be obtained by contacting ir@eose.com, when available. Any rights offering by Eos, if commenced, will be conducted by Eos in accordance with applicable securities laws, and investors should refer to Eos' own public filings and offering documents for complete information regarding any such offering. Before you invest in any offering, you should read the applicable prospectus supplement relating to the offering and accompanying prospectus, the registration statement and the other documents that Eos has filed with the SEC as incorporated by reference therein, for more complete information about Eos and the offering. Investors may obtain these documents for free by visiting the SEC’s website at www.sec.gov.

Factors which may cause actual results to differ materially from current expectations include, but are not limited to: the risk that the joint venture will not be completed on the anticipated terms or timeline, or at all; the risk that the Eos rights offering will not be completed or will not raise the anticipated amount of capital; the risk that definitive agreements for the proposed transactions will not be executed; the need to obtain stockholder approval of an increase to Eos’ authorized common stock and the receipt of required third-party approvals, including the approval of the Department of Energy; Frontier Power USA’s lack of operating history and the inherent uncertainty of projections for a newly formed entity; risks related to the development, construction, and operation of long-duration energy storage projects, including permitting, interconnection, and regulatory approvals; dependence on Eos’ manufacturing capacity, technology performance, and continued commercial viability of the Z3 technology; risks that the Technology Performance Insurance framework will not be executed at the project level on the contemplated terms; risks associated with project-level debt financing, including the ability to achieve investment-grade terms; pipeline conversion risk, including the risk that identified pipeline opportunities will not convert to funded projects; market and economic conditions affecting project economics, including interest rate fluctuations, supply chain disruptions, and changes in energy policy; competition from existing or new energy storage technologies and competitors; risks associated with the nascent state of the long-duration energy storage market; risks related to changes in federal, state, or local energy policies, including potential repeal or modification of Inflation Reduction Act tax credits; and other risks and uncertainties that are difficult to predict. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.

Forward-looking statements speak only as of the date they are made. Should one or more of these risks or uncertainties materialize or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

This press release includes information about a proposed series of transactions, including the formation of the Company, an investment by Cerberus and Eos in the Company, a rights offering by Eos to fund its investment in the Company, and certain commercial arrangements to be entered into between Eos and the Company (collectively, the “Proposed Transactions”). We and Eos have entered into a binding term sheet with respect to the Proposed Transactions. However, the completion of the Proposed Transactions remains subject to a number of conditions and uncertainties, including the receipt of Eos’ shareholder approval to increase the authorized shares of Eos’ common stock, and the receipt of required third party-approvals, including the approval of the Department of Energy, the negotiations and entry into definitive agreements for the Proposed Transactions and other conditions. While we currently intend to take the actions within our control to complete the Proposed Transactions on the contemplated terms and timeline, there can be no assurances that the Proposed Transactions will be completed on the contemplated terms or timeline or that the Proposed Transactions will be completed at all.

No offer or sale of securities is being made pursuant to this press release. This press release does not constitute an offer to participate in a rights offering or to subscribe for any securities in a rights offering. There shall be no offer to sell or the solicitation of an offer to buy or any sale of subscription rights, warrants, common stock, equity interests, limited partnership interests or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any rights offering by Eos, if commenced, will be conducted by Eos in accordance with applicable securities laws; investors should refer to Eos’ own public filings and offering documents for information regarding any such offering. Nothing in this press release shall be construed as an offer or solicitation of any investment opportunity in any Cerberus-managed fund or co-investment vehicle.

This item of content is a press release from a third party provider who make no warranties or representations in connection with this content and therefore PA can make no warranties in respect of its use.

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