Fluence Energy signs multiyear battery supply deal with EVE Power
Fluence Energy has signed a multiyear master supply agreement with EVE Power Co., Ltd., a Chinese lithium battery manufacturer, under which EVE Power will supply battery cells for Fluence's energy storage systems. The deal is intended to give the Arlington, Virginia-based company greater certainty over supply volumes and input costs as it scales its grid-scale storage deployments across nearly 50 markets.
Roman Loosen, SVP and Chief Supply Chain Officer at Fluence, said the partnership "strengthens our access to advanced battery technology and supports our ability to meet customer commitments with greater agility and cost certainty while maintaining the high performance, reliability, and safety standards that guide every Fluence product." The company did not disclose contract volumes, financial terms, or the specific cell chemistries covered by the agreement.
Supply chain strategy
Fluence was explicit that the EVE Power agreement forms part of its global supply strategy, and that it is pursuing a separate, parallel approach for the US market. That distinction is commercially significant: Fluence has developed a domestic content offering for US customers seeking to qualify projects for tax credits under the Inflation Reduction Act's domestic content bonus, which mandates minimum proportions of US-manufactured components. Relying on a Chinese cell supplier for US projects could complicate or preclude eligibility for those incentives, which is likely why the company was careful to ring-fence its American sourcing posture from this announcement.
EVE Power is a mid-tier player in the global lithium iron phosphate (LFP) cell market. The company competes primarily with CATL and BYD, both of which have existing relationships with Western energy storage integrators. Securing a named tier-two supplier gives Fluence an additional sourcing lever and reduces concentration risk in a market where CATL alone accounts for a substantial share of grid-scale cell shipments.
Market context
The grid-scale battery storage market is expanding rapidly, driven by the build-out of renewable generation capacity and growing demand for grid balancing services. Fluence, a joint venture spun out from Siemens and AES, competes with a broad range of integrators including Tesla Energy, BYD, Wärtsilä, and a cluster of Asian manufacturers moving up the value chain into integrated storage systems. Securing long-term supply agreements has become a competitive necessity: spot-market cell pricing has been volatile, and contractors with committed supply can offer customers more predictable project economics.
The reference in Fluence's release to powering "AI-driven data centres" is notable. Hyperscalers and colocation operators are increasingly turning to on-site battery storage to smooth grid demand and provide backup capacity as power-hungry GPU clusters push data-centre load to record levels. This market segment could represent a meaningful incremental revenue opportunity for Fluence alongside its core utility and renewable-developer customer base.
Regulatory read-across
US-China trade policy remains a material risk for any supply chain dependent on Chinese cell manufacturing. The Biden-era tariff schedule imposed additional duties on Chinese lithium batteries, and the current administration has signalled continued scrutiny of Chinese clean-energy component imports. Should tariff or export-control conditions tighten further, Fluence's explicit carve-out of a separate US supply strategy may prove prescient. European buyers face a different but equally evolving landscape: the EU Battery Regulation, which came into force in 2023 and is phasing in carbon-footprint and supply-chain due-diligence obligations through 2027, will affect how Fluence structures procurement for its European project pipeline.
The immediate next milestones for investors and customers to watch are evidence of project deliveries supported by EVE Power cells, any update on the domestic content offering's progress, and whether Fluence adds further supplier agreements to broaden its tier-two cell base.