Fluence, a leading global energy storage technology, software and services provider, and Northvolt, a leading European battery developer and manufacturer, this week announced an agreement to co-develop next-generation battery technology for grid-scale storage applications. As part of the agreement, Fluence also plans to purchase battery systems from Northvolt.

The companies will draw on Fluence's systems-level knowledge, including 13 years of energy storage system operating data, and Northvolt's battery manufacturing expertise and digital competences to develop stationary energy storage products with embedded intelligence and total system optimization.

Fluence and Northvolt will work together to develop Northvolt battery hardware and battery management systems optimized for Fluence energy storage solutions. Digital intelligence, tightly integrated through the full product lifecycle from battery manufacturing to end-of-life, will lower total cost of ownership and create unique opportunities to generate value for Fluence customers. The agreement provides Northvolt with an unmatched channel to deliver systems to the global market and expands Fluence's supply chain to include the leading European-based battery manufacturer.

"Grid-scale energy storage will play a crucial role in transforming the way we power our world, and we are excited to join forces with a true innovator like Northvolt to deliver technology with significant societal and environmental benefits," said Manuel Perez Dubuc, CEO of Fluence. "This integrated approach to optimize battery technology for Fluence product offerings is intended to make our systems greener, more cost-effective and more impactful, and to help us meet growing demand for sustainable energy storage solutions around the world."

Battery energy storage is a key element of reliable, resilient, decarbonized electric grids. In response to surging demand for grid-scale battery solutions, Northvolt recently announced a $200M investment to ramp up its stationary energy storage manufacturing capacity.

Both Fluence and Northvolt are committed to decarbonizing the battery supply chain. Northvolt, which has a focus on delivering the lowest carbon footprint possible for its products and developing the world's greenest battery, will use clean power at its production facilities and is developing advanced recycling capabilities for batteries.

The two companies will continue to collaborate with OEMs globally to evolve batteries and systems for energy storage applications and will be able to integrate the learnings from the co-development to speed up the transition to a sustainable society.

Source: Fluence