Is ESS Tech, Inc. GWH stock Halal to invest in?

No, as of September 2026, ESS Tech, Inc. stock (GWH) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening Halal stocks. To qualify as Halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. ESS Tech, Inc. currently does not meet the threshold for the interest-bearing investments screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of ESS Tech, Inc. and discover Shariah compliant alternatives among the Halal stocks in the Tabadulat app.

How often is ESS Tech, Inc. GWH reviewed for Shariah compliance?

Tabadulat reviews ESS Tech, Inc. GWH for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for ESS Tech, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does ESS Tech, Inc. GWH pass the AAOIFI Non Permissible Income criteria?

Yes, as of September 2026, ESS Tech, Inc. stock (GWH) passes the AAOIFI non-permissible income screen. Each month Tabadulat measures ESS Tech, Inc.'s income from impermissible sources, covering Riba, conventional financial services, alcohol, gambling and tobacco, against AAOIFI's 5% revenue ceiling. The latest screening puts the company inside the limit. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does ESS Tech, Inc. GWH pass the AAOIFI Interest Bearing Investments criteria?

No, as of September 2026, ESS Tech, Inc. stock (GWH) does not pass the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. ESS Tech, Inc.'s interest-bearing investments currently exceed this 30% limit, meaning too large a share of the company's value derives from Riba-based instruments for the stock to qualify as Halal on this criterion. The ratio moves with both the balance sheet and the share price, and is reassessed monthly.

Does ESS Tech, Inc. GWH pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of September 2026, ESS Tech, Inc. stock (GWH) passes the AAOIFI interest-bearing debt screen. The debt screen caps Riba-based borrowing, meaning conventional bank loans, bonds and similar financing, at 30% of market capitalisation, limiting a shareholder's exposure to interest-based leverage. ESS Tech, Inc. is inside that limit in the latest screening. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for ESS Tech, Inc. GWH stock?

ESS Tech, Inc. (GWH) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (Tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a Halal investment. If ESS Tech, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does ESS Tech, Inc. GWH pass the AAOIFI Preference Share screen?

Yes, as of September 2026, ESS Tech, Inc. stock (GWH) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. ESS Tech, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Is ESS Tech (GWH) stock Halal?

NYSE

Shariah-Compliant

Not Shariah

Under AAOIFI Shariah Standard No. 21, a Halal stock keeps non-permissible income below 5% of revenue and interest-bearing debt and investments each below 30% of market capitalisation. ESS Tech, Inc. (GWH) does not meet the threshold for the interest-bearing investments screen as of September 2026, so it is not Shariah compliant.

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Employees:

240

Website:

https://essinc.com

Market cap:

$13M

P/E ratio:

Dividend yield:

52-week range:

$0.31 - $13.87

Data as of:

3 September 2026

Screening history:

September 2026: FAIL

ESS Tech is a company specializing in the development and production of energy storage solutions, primarily focusing on iron flow batteries. These batteries offer a sustainable and durable energy storage option, which is particularly valuable as renewable energy sources become more prevalent. The company’s technology is aimed at large-scale energy storage applications, impacting sectors such as utilities, commercial and industrial energy systems, and grid storage solutions. For Muslim investors, though, the most pressing question is simpler: is ESS Tech a Halal investment?

Is ESS Tech Shariah compliant?

For industrial companies like ESS Tech, the product is rarely the problem; aircraft, vehicles and machinery are permissible. The exposure is leverage: fleets and factories are financed, and the 30% cap that AAOIFI Shariah Standard No. 21 places on interest bearing debt is the screen that decides most verdicts in this sector.

Does ESS Tech pass the business activity test?

The activity screen is only part of the picture this month: ESS Tech currently fails the interest-bearing investments screen, so the overall verdict is not compliant regardless of the business itself. The activity itself raises no Shariah objection; the scrutiny belongs to the financing.

Is ESS Tech's income Halal?

Yes, within AAOIFI's tolerance. ESS Tech's income from non-permissible sources stays below 5% of revenue in the September 2026 screening.

Does ESS Tech meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing investments currently exceed the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?

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