Battery Manufacturer Powin Files for Bankruptcy

Powin Energy Files for Chapter 11 Bankruptcy

Powin, a manufacturer of battery systems, initiated bankruptcy proceedings on Wednesday. The Oregon-based firm reported liabilities exceeding $300 million.

This Chapter 11 filing enables the company to maintain operations while undergoing financial restructuring. It provides a legal framework for addressing its debt obligations.

Focus on Grid-Scale Battery Production

Powin specialized in the production of large-scale batteries for grid applications. These systems utilized lithium-iron-phosphate (LFP) cells sourced from manufacturers in China.

Earlier this year, in April, former CEO Jeff Waters communicated to Bloomberg that the company was actively seeking alternative suppliers within the United States. However, a sufficiently robust domestic supply chain was not yet available.

Downsizing and Leadership Changes

Prior to the bankruptcy filing, Powin underwent significant workforce reductions. Approximately 250 employees were laid off earlier this month, leaving a workforce of only 85.

This represents a substantial decrease, with the current staff size being less than 20% of the number employed at the beginning of the year. Concurrent with the filing, Brian Krane, previously the chief projects officer, assumed the role of CEO, replacing Jeff Waters.

Company History and Investment

Powin has a history dating back to the initial wave of clean technology growth. The company transitioned to private ownership in 2018.

In 2022, it secured $135 million in growth equity funding from investors such as Energy Impact Partners, GIC, and Trilantic Energy Partners. More recently, a $200 million revolving credit facility was established with KKR.

Market Position and Potential Contributing Factors

Powin experienced considerable growth alongside the expansion of the grid-scale battery storage market. It held a position as the third-largest installer in the U.S. and fourth globally in terms of installed capacity.

The company has not publicly disclosed the specific reasons for the sudden increase in debt. However, potential factors may include the impact of tariffs, given its dependence on Chinese-sourced LFP cells.