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Is FLNC's Long-Term Agreement on Battery Supply a Game Changer?
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Key Takeaways
Fluence Energy signed a multi-year EVE Power battery deal to strengthen its storage supply network.
The agreement should improve supply and cost visibility while supporting greater operational flexibility.
FLNC could scale projects more efficiently, reduce supply uncertainty and better serve global customers.
Fluence Energy (FLNC - Free Report) has entered into a multi-year master supply agreement with EVE Power, a global lithium battery manufacturer, to strengthen its access to advanced battery technology for energy storage systems. Under the agreement, EVE Power will provide battery cells for Fluence’s energy storage solutions, supporting its efforts to enhance supply chain resilience and meet growing customer demand.
The partnership forms part of Fluence’s broader global supply strategy, enabling it to secure reliable access to high-quality battery components while improving operational flexibility. The agreement is also expected to provide greater visibility into supply availability and costs, helping Fluence maintain its focus on delivering energy storage systems that meet stringent performance, reliability and safety standards.
Fluence continues to adapt its supply-chain strategy across different markets, including initiatives focused on domestic content offerings in the United States and potential localization opportunities in other regions. These efforts are aimed at improving supply chain efficiency while aligning with evolving market requirements and customer preferences.
The agreement with EVE Power is expected to benefit Fluence by strengthening its battery supply network and supporting the scalability of the energy storage business. Reliable access to advanced lithium battery technology could help Fluence execute large-scale storage projects more efficiently, reduce supply-related uncertainties and improve its ability to serve customers globally. Additionally, the partnership may enhance Fluence’s competitive position by providing greater flexibility in managing costs while maintaining product quality and reliability across its energy storage portfolio.
Taking a Look at Another Battery Supply Agreement
In a bid to further boost the thriving energy storage business, Tesla (TSLA - Free Report) announced in March that it is collaborating with South Korea’s LG Energy Solution to buy $4.3 billion worth of lithium iron phosphate battery cells. These cells will be manufactured in the Lansing, MI, factory, starting in 2027.
The facility was originally part of a joint venture between GeneralMotors (GM - Free Report) and LG Energy. However, as General Motors scaled back EV investments amid slower-than-expected adoption, it exited the project, allowing LG Energy to repurpose the plant for new customers like Tesla.
The rationale behind Tesla’s deal with LG Energy is to secure a domestic battery supply and reduce reliance on China. Tesla’s energy storage business is increasingly exposed to tariffs on imported batteries. Without a local supply of LFP cells, the company would either have to absorb higher costs or pass them on to customers, both of which could hurt growth.
The partnership ensures American-made LFP cells will power Tesla’s Megapack 3 systems. By locking in domestic supply, Tesla is directly addressing a key bottleneck — battery availability — while improving cost visibility. If executed well, this could make its energy segment an even more compelling part of the company's long-term growth story.
FLNC’s Share Price Performance, Valuation and Estimates
Shares of FLNC have declined in double digits (% -wise) over the past six months. Consequently, FLNC’s shares underperformed its industry over the same time frame.
6-Month Price Comparison
Image Source: Zacks Investment Research
From a valuation standpoint, FLNC trades at a 12-month forward price-to-sales of 0.4X, trading at a discount compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for FLNC’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
FLNC’s Zacks Rank
FLNC currently carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
Is FLNC's Long-Term Agreement on Battery Supply a Game Changer?
Key Takeaways
Fluence Energy (FLNC - Free Report) has entered into a multi-year master supply agreement with EVE Power, a global lithium battery manufacturer, to strengthen its access to advanced battery technology for energy storage systems. Under the agreement, EVE Power will provide battery cells for Fluence’s energy storage solutions, supporting its efforts to enhance supply chain resilience and meet growing customer demand.
The partnership forms part of Fluence’s broader global supply strategy, enabling it to secure reliable access to high-quality battery components while improving operational flexibility. The agreement is also expected to provide greater visibility into supply availability and costs, helping Fluence maintain its focus on delivering energy storage systems that meet stringent performance, reliability and safety standards.
Fluence continues to adapt its supply-chain strategy across different markets, including initiatives focused on domestic content offerings in the United States and potential localization opportunities in other regions. These efforts are aimed at improving supply chain efficiency while aligning with evolving market requirements and customer preferences.
The agreement with EVE Power is expected to benefit Fluence by strengthening its battery supply network and supporting the scalability of the energy storage business. Reliable access to advanced lithium battery technology could help Fluence execute large-scale storage projects more efficiently, reduce supply-related uncertainties and improve its ability to serve customers globally. Additionally, the partnership may enhance Fluence’s competitive position by providing greater flexibility in managing costs while maintaining product quality and reliability across its energy storage portfolio.
Taking a Look at Another Battery Supply Agreement
In a bid to further boost the thriving energy storage business, Tesla (TSLA - Free Report) announced in March that it is collaborating with South Korea’s LG Energy Solution to buy $4.3 billion worth of lithium iron phosphate battery cells. These cells will be manufactured in the Lansing, MI, factory, starting in 2027.
The facility was originally part of a joint venture between General Motors (GM - Free Report) and LG Energy. However, as General Motors scaled back EV investments amid slower-than-expected adoption, it exited the project, allowing LG Energy to repurpose the plant for new customers like Tesla.
The rationale behind Tesla’s deal with LG Energy is to secure a domestic battery supply and reduce reliance on China. Tesla’s energy storage business is increasingly exposed to tariffs on imported batteries. Without a local supply of LFP cells, the company would either have to absorb higher costs or pass them on to customers, both of which could hurt growth.
The partnership ensures American-made LFP cells will power Tesla’s Megapack 3 systems. By locking in domestic supply, Tesla is directly addressing a key bottleneck — battery availability — while improving cost visibility. If executed well, this could make its energy segment an even more compelling part of the company's long-term growth story.
FLNC’s Share Price Performance, Valuation and Estimates
Shares of FLNC have declined in double digits (% -wise) over the past six months. Consequently, FLNC’s shares underperformed its industry over the same time frame.
6-Month Price Comparison
From a valuation standpoint, FLNC trades at a 12-month forward price-to-sales of 0.4X, trading at a discount compared with its industry.
See how the Zacks Consensus Estimate for FLNC’s earnings has been revised over the past 90 days.
FLNC’s Zacks Rank
FLNC currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.