Fluence Energy (FLNC) Ships First US-Made Batteries but What Does This Mean for Supply Chain Resilience?

• Earlier this month, Fluence Energy announced it has shipped its first U.S.-made lithium-ion battery storage systems, marking a milestone in reshoring key supply chain components and supporting domestic energy security and policy incentives.
• This achievement not only advances Fluence's U.S. manufacturing strategy but also helps customers manage risk by improving supply resilience and enhancing eligibility for federal tax credits.
• We'll examine how Fluence's successful domestic production of advanced battery systems could influence its investment outlook and growth prospects.

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Fluence Energy Investment Narrative Recap

The investment case for Fluence Energy centers around a belief in accelerating grid-scale battery storage demand, driven by energy transition needs, falling storage costs, and policy support for renewables. The recent shipment of U.S.-made battery storage systems directly addresses the most critical short-term catalyst, restoring revenue confidence amid tariff disruptions, by strengthening domestic supply chain resilience and supporting access to tax incentives, though the full financial impact remains to be seen. The main risk remains uncertainty in U.S. trade policy and the company’s ability to rapidly scale domestic component production, both of which directly impact growth and margins.

Among recent announcements, the August 2025 launch of production at Fluence’s Houston facility, focused on building critical thermal management systems for its Gridstack Pro batteries, most closely aligns with the intent of the domestic shipment news by further solidifying the U.S. supply chain. This effort not only supports eligibility for federal incentives but also helps mitigate the supply and contract risks that have weighed on recent revenue forecasts, highlighting the importance of ongoing domestic expansion alongside new product rollouts and international contract wins.

However, while new projects and U.S. production may improve supply security, investors should pay close attention to shifting U.S. industrial policy and the threat of further...

Read the full narrative on Fluence Energy (it's free!)

Fluence Energy's narrative projects $4.2 billion in revenue and $97.9 million in earnings by 2028. This requires 19.5% yearly revenue growth and a $116.3 million earnings increase from current earnings of -$18.4 million.

Uncover how Fluence Energy's forecasts yield a $7.74 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community value Fluence between US$7.74 and US$19.50 per share. With ongoing swings in trade policy and production timelines shaping the near-term, it is important to examine these varied outlooks before forming your own view.

Explore 6 other fair value estimates on Fluence Energy - why the stock might be worth over 2x more than the current price!

Build Your Own Fluence Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fluence Energy research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Fluence Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fluence Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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