Energy Vault Holdings, Inc., a global leader in grid-scale energy storage solutions, has announced that it has entered into an exclusivity agreement for a $300 million preferred equity investment. The funding will support the launch of Asset Vault, a fully consolidated subsidiary dedicated to developing, building, owning, and operating energy storage assets, both stand-alone and hybrid systems in high-value energy markets around the world.
The investment will accelerate the execution of Energy Vault’s Independent Power Producer (IPP) strategy, focused on deploying 1.5 gigawatts (GW) of energy storage in priority markets. Drawing on its deep operational expertise in designing, constructing, and managing energy storage systems, the Company expects to reduce both capital expenditures per kilowatt-hour and operating expenses. This efficiency is enabled by its advanced Energy Management System software, which optimizes system performance, safety, reliability, and economic dispatch to enhance project-level internal rates of return (IRRs).
Following the anticipated closing within 30 to 60 days, subject to standard regulatory and closing conditions, Asset Vault will become the primary platform for Energy Vault’s owned energy storage projects. These assets will be underpinned by long-term offtake agreements, ensuring predictable revenue streams and project monetization. The $300 million in capital will fund development costs, asset acquisitions, and both majority and minority equity investments to support scalable project financing and execution. The preferred equity structure is non-dilutive to common shareholders and includes milestone-based rights for equity participation in the public company, reinforcing alignment with shareholder interests.
“The $300 million investment and the creation of Asset Vault unlock the full potential of our “Own and Operate” storage IPP strategy with immediate investment flexibility,” said Robert Piconi, Chairman of the Board and CEO of Energy Vault. “By combining long-term contracted revenues with strategic capital and integrated, self-performed project execution, we are well positioned to scale resilient, mission-critical energy infrastructure to meet the current needs driven by the penetration of renewable energy and the massive increases in energy demand driven by data center AI infrastructure.”
Asset Vault will consolidate Energy Vault’s growing portfolio of contracted and operational storage projects, with 3GW and 12+ GWH of top tier projects identified, acquired and/or in operation, including:
Operational projects: Cross Trails BESS (57MW/114MWh) and Calistoga Resiliency Center (8.5MW/293MWh):
- $100m deployed across the first two projects, offset by project financing and monetization of investment tax credits
- Both Projects are supported by long-term offtake agreements and project-level debt financing, creating high-visibility, profitable and recurring cash flows.
- Contracted Project: Stoney Creek BESS, the recently acquired 125 MW / 1.0 GWh in New South Wales, Australia, backed by up to a 14-year Long-Term Energy Service Agreement (LTESA) with AEMO Services as the Consumer Trustee under the New South Wales Electricity Infrastructure Roadmap, ensuring stable capacity revenues.
- Robust pipeline of ~ 3 gigawatts (GW) of battery energy storage systems (BESS) across the U.S., Europe and Australia. These projects are underpinned by long-term revenue contracts, with the US projects benefiting from Investment Tax Credit (ITC) incentives, positioning the platform for 15% + targeted levered IRRs over a 20-year asset life.
Critically, Energy Vault will retain full voting and operational control of Asset Vault, capitalizing on its fully integrated development, engineering, procurement, construction (EPC), and asset management capabilities. By self-performing EPC activities across Asset Vault’s project portfolio, the Company expects to drive incremental consolidated revenue, achieve higher gross margins, and unlock strategic operating leverage throughout its value chain.
From the initial $300 million investment, Asset Vault is projected to generate over $100 million in recurring annual EBITDA within the next 3 to 4 years as a consolidated subsidiary, adding to Energy Vault’s core Energy Storage Solutions business, which currently accounts for the majority of the Company’s revenue. Consistent with its approach for the initial two operational energy assets in Texas and California, Energy Vault will continue to self-perform the design, construction, commissioning, and long-term service agreements (LTSAs) for projects under Asset Vault. These internal contracts will provide additional cash flow and liquidity to the parent company, Energy Vault Holdings.
Energy Vault’s technology agnostic approach and flexible business model spans energy-as-a-service, project development and sale, and long-term asset ownership, enabling value capture across the energy storage lifecycle.
Virtual Investor Day
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.
