T1 Energy Inc. (T1) saw its stock climb 1.4% to close at $11.66 on Thursday, marking a new 52-week high. The shares traded between $10.90 and $12.49 during the session, with volume reaching approximately 41.7 million shares. The rally follows the company's announcement that it has agreed to acquire battery storage firm KORE Power for about $32 million in enterprise value.
The acquisition positions T1 Energy to expand beyond its core solar module business into the growing battery energy storage systems (BESS) market. These large-scale batteries store electricity and can discharge it to the grid or directly to customers, making them increasingly vital for powering AI-driven data centers amid rising electricity demand and grid constraints.
Under the terms of the deal, T1 will pay approximately $32 million, comprising equity, cash, and assumed debt. The transaction is expected to close in the second quarter of 2026. KORE Power's NRI unit, which specializes in utility-scale storage systems, will be rebranded as T1 NRI upon completion.
T1 management anticipates the acquisition will boost EBITDA in 2026 and contribute an additional $15 million to $20 million in EBITDA during 2027. EBITDA, or earnings before interest, taxes, depreciation, and amortization, provides a clearer view of operational profitability by excluding financing and accounting costs.
Dan Barcelo, chairman and CEO of T1 Energy, praised the KORE NRI team for their "extraordinary capability, knowledge, and customer relationships" in storage and power infrastructure. Jay Bellows, president and CEO of KORE Power, noted that the combination would offer customers "a one-stop solution for generation, storage, system design, and ongoing operations."
The move comes as battery storage companies increasingly target AI data center demand, though they face grid bottlenecks and supply chain challenges, according to a recent Reuters report. The same report highlighted that U.S. electricity demand from data centers could surge by 2030.
T1's first-quarter results, released before the KORE news, showed net sales of $177.6 million and net income from continuing operations of $3.9 million. However, the company reported a loss to common stockholders of $21.4 million. Cash, cash equivalents, and restricted cash totaled $123.7 million at the end of March.
While T1 shares advanced, other solar stocks declined. First Solar fell 1.0%, Enphase Energy dropped 0.9%, and SolarEdge slipped 1.2%. The Invesco Solar ETF (TAN) managed a slight gain of 0.3%. Broader markets were mixed, with the S&P 500 rising 0.4% and the Dow Jones Industrial Average hitting a fresh record, while the Nasdaq edged down 0.1% due to losses in chip stocks.
The deal is subject to customary approvals, including a vote by KORE shareholders. T1 has flagged risks including potential delays in factory construction, supplier dependence, uncertainty around tariffs and tax credits, and the need to raise capital or manage debt. Any delay in closing, margin compression in storage, or changes in clean-energy policy could quickly reverse the stock's recent gains.
