Investing.com -- Eos Energy Enterprises Inc (NASDAQ: EOSE ). shares climbed 4.1% in premarket trading after the energy storage company received the second tranche of a loan from the Department of Energy’s Loan Programs Office.

The funding will support the expansion of U.S. battery manufacturing capacity and covers 80% of incurred eligible costs, Eos said in a statement Tuesday.

The zinc-based battery manufacturer previously received the first tranche of $68.3 million in December.

According to Stifel analyst Stephen Gengaro, Eos Energy has made solid progress on efforts to strengthen its balance sheet and is well-positioned to execute on its growing order backlog. Gengaro maintains a buy rating and $8.50 price target on the stock.

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