Energy Vault Holdings Inc. (NYSE: NRGV) will deploy its novel gravity-based energy storage technology in South Africa through a new strategic partnership with state-owned utility Eskom, a landmark agreement that could scale to 4 GWh of storage by 2035 and help the nation transition away from its heavy reliance on coal.
"This partnership with Energy Vault and its innovative gravity storage technology will play a pivotal role in achieving our Just Energy Transition goals," Dan Marokane, Group Chief Executive of Eskom Holdings, said. The collaboration supports Eskom’s Just Energy Transition Partnership (JETP) initiative, which is focused on achieving a sustainable and equitable transition away from coal while ensuring grid reliability.
The first deployment will be a 25-megawatt system with 100 megawatt-hours of capacity at Eskom’s Hendrina Power Station in Mpumalanga. Energy Vault will provide its EVx 2.0™ GESS technology, which uses a crane to stack and lower 25- to 30-ton blocks made from repurposed coal ash, storing and releasing energy to the grid. The agreement includes licensing and co-development for up to 4 GWh of storage across the 16-member Southern African Development Community (SADC) region.
The deal provides a significant industrial-scale proof point for Energy Vault's technology and a crucial step in South Africa's efforts to decarbonize. The country generated over 80 percent of its electricity from coal in 2024. For Energy Vault, the partnership offers a potential long-term revenue stream and a high-profile case study as it competes with established battery technologies from firms like Eve Energy and Gotion High-Tech.
A Bet on Gravity Over Batteries
Energy Vault's gravity storage presents a different approach to the grid-scale storage market, which is currently dominated by lithium-ion battery systems. While battery costs have fallen, they face challenges related to supply chain constraints, limited duration, and degradation over time. Gravity storage, in contrast, promises a longer lifespan with minimal performance loss.
The EVx 2.0 system's ability to use waste materials like coal ash for its blocks is a key economic and environmental advantage, particularly for a utility like Eskom, which is decommissioning coal-fired power plants. This aligns with the JETP's goal of finding productive uses for former fossil fuel assets and their waste streams.
What This Means for Investors
The market reacted positively to the announcement, with Energy Vault's shares (NRGV) climbing over 11% to $5.04. The stock has delivered a remarkable 371% return over the past year, with revenue surging 362% to $217 million in the last twelve months.
However, the company is not yet profitable, reporting a full-year EPS of -$0.71. It also recently missed Q1 2026 expectations, with revenue of $21.9 million falling nearly 40% short of the $36.3 million forecast. Despite the miss, Energy Vault reaffirmed its full-year revenue guidance of $225 million to $300 million, signaling confidence in its project pipeline. This Eskom deal is critical to hitting that target and could pave the way for further large-scale deployments needed to justify its $877 million market capitalization.
This article is for informational purposes only and does not constitute investment advice.
