Eskom and Energy Vault Partner on Gravity Energy Storage Project in South Africa as Share Price Soars
Eskom and Energy Vault have announced a strategic partnership to deploy gravity-based energy storage projects aimed at strengthening grid reliability and supporting Southern Africa’s energy transition.
Quick overview
- Eskom and Energy Vault have formed a strategic partnership to implement a 25MW/100MWh gravity energy storage system at the Hindrina Power Station in South Africa.
- The project aims to enhance grid reliability and support the region's energy transition, with potential expansion up to 4GW in the future.
- Energy Vault's gravity storage technology utilizes composite blocks made from industrial waste, offering environmental benefits and the possibility of reusing coal ash.
- Despite skepticism regarding the economics of gravity storage, Energy Vault reported significant revenue growth and is focused on expanding its project pipeline.
Eskom and Energy Vault have announced a strategic partnership to deploy gravity-based energy storage projects aimed at strengthening grid reliability and supporting Southern Africa’s energy transition.
Eskom and Energy Vault Launch Storage Partnership
Eskom and Energy Vault have signed a strategic development agreement to deploy a 25MW/100MWh gravity energy storage system at the Hindrina Power Station in Mpumalanga province.
The companies said the project could eventually scale up to 4GW, although no timeline was provided for the expansion. The initiative forms part of Eskom’s broader Just Energy Transition Partnership strategy, which focuses on reducing coal dependence while improving grid reliability and supporting local economic development.
Energy Vault will supply its EVx 2.0 gravity energy storage technology alongside engineering, project management, and operational training support.
Gravity Technology Offers Alternative to Traditional Storage
Energy Vault’s gravity-based system works similarly to pumped hydro storage, but instead of moving water, the technology lifts and lowers massive composite blocks to store and release energy.
The blocks can be manufactured using industrial waste materials, including coal ash, creating potential environmental and economic benefits. The companies also plan to explore the reuse of waste coal ash as part of future storage deployments across the region.
Beyond South Africa, the partnership includes plans to co-develop and license up to 4GWh of long-duration energy storage projects across the 16 member states of the Southern African Development Community.
Energy Vault Chart Daily – Rebounding Off the 200 SMA
South Africa Continues Grid Modernization Efforts
South Africa’s electricity system has faced years of reliability problems and widespread blackouts, pushing Eskom to accelerate renewable energy and battery storage procurement.
The utility has recently shown signs of improvement, surpassing 300 days without load shedding as renewable capacity and storage infrastructure continue expanding. However, Eskom still faces operational and financial challenges, including longstanding corruption allegations and pressure to modernize aging infrastructure.
The latest storage initiative aligns with growing efforts to stabilize the grid as the country increases its use of intermittent solar and wind generation.
Questions Remain Around Gravity Storage Economics
Despite growing interest, gravity-based storage technology continues to face skepticism from some industry observers regarding efficiency, scalability, and long-term economics.
Energy Vault has continued developing the technology while also diversifying into battery energy storage systems and green hydrogen projects. The company’s first operational gravity systems were deployed in China in partnership with a waste management firm.
Earlier this week, Energy Vault reported first-quarter 2026 revenue growth of 156% year over year to $21.9 million, although earnings missed expectations with a loss of $0.12 per share. The company nevertheless reaffirmed its full-year revenue guidance of $225 million to $300 million, supported by expected project deliveries later in the year.
-
- Revenue: $21.9 million, a 156% increase year-over-year.
- Earnings Per Share (EPS): -$0.12, missing the forecasted -$0.07.
- Cash Position: Strengthened to $117.1 million, a 148% increase year-over-year.
- Adjusted EBITDA: -$13.6 million, reflecting ongoing investment in growth, compared to -$11.3 million in Q1 2025.
- Key Driver: The company is undergoing a strategic transformation to a vertically integrated Independent Power Producer (IPP).
-
- Energy Vault saw strong performance in 2025 with $203.7 million in revenue, a 340%+ increase over the prior year.
- The company finished 2025 with a record $1.3 billion in contract revenue backlog, signaling 42% sequential growth from Q3 2025.
- Management remains confident in meeting the 2026 guidance, highlighting a strong project pipeline.
- The company is focusing on expanding its “Asset Vault” portfolio and AI power infrastructure opportunities
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save