What Happened?
Shares of electricity storage and software provider Fluence (NASDAQ: FLNC) jumped 4.7% in the afternoon session after the company, in partnership with Axpo and energieUri, announced the development of two new battery energy storage system (BESS) projects in Switzerland.
The projects, located in the Platti district of Gurtnelle, will have a combined power rating of 58.6 megawatts (MW), with one system rated at 50MW and the other at 8.6MW. This development highlights the company's expansion and its role in the growing energy storage market. The move comes as the broader renewable energy sector anticipates increased demand. A surge in power consumption from new data centers being built for artificial intelligence is creating an urgent need for more electricity, benefiting companies that provide energy solutions like solar and battery storage.
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What Is The Market Telling Us
Fluence Energy’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 4.7% on the news that the company announced two significant operational milestones: energizing Ukraine's largest battery storage project and shipping its first U.S.-made battery systems.
Fluence, in partnership with Ukraine's largest private energy company, DTEK Group, has activated a 200 MW battery-based energy storage project. This massive undertaking consists of six systems with the capacity to store 400 MWh of electricity, enough to power 600,000 Ukrainian homes for two hours, thereby enhancing the nation's energy security. In a separate key development, the company also announced it has shipped its first domestic content lithium-ion battery storage systems built with U.S.-made components. This achievement is a major step in reshoring critical technology manufacturing and strengthens the American energy supply chain, potentially unlocking valuable incentives for customers.
Fluence Energy is down 56.4% since the beginning of the year, and at $7.37 per share, it is trading 68.6% below its 52-week high of $23.50 from November 2024. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $210.54.
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