Siemens and AES Corp. on Monday said they plan to form a new global energy storage technology and services company.
The new company, Fluence, would combine AES Advancion battery systems with Siemens’ Siestorage energy storage platform. Combined, the companies say they have 48 operational storage facilities in 13 countries, totaling 463 MW.
Siemens and AES will have joint control of the company with each holding a 50% stake. The transaction is expected to close in the fourth quarter, pending regulatory approvals.
Manufacturers such as Siemens have been taking a strong interest in energy storage. In January, Siemens formed a partnership with Eos Energy Storage to integrate, install and service energy storage solutions.
Siemens has now taken an even bigger step, teaming up with major utility-scale battery provider AES, which has 200 MW of storage installed worldwide.
The new company aims to leverage the reach of both AES and Siemens.
“Fluence will be an energy storage technology and services company, working with utilities, project developers and commercial and industrial customers across the globe,” said AES spokesman Steven Goldman.
Previously, Siemens focused on small-scale battery systems for commercial and industrial customers. AES has developed major utility-scale projects for California utilities, including the world's largest lithium-ion facility in operation and a recent deal to combine 100 MW of storage with a 1,284 MW combined-cycle gas plant.
The new joint venture will allow the company to “offer the complete gamut of products," said AES CEO Andres Gluski, "from C&I to very large utility-scale projects in 160 countries."
The partnership is poised to challenge Elon Musk's Tesla by offering large customers a wide array of storage options. Tesla on Monday announced plans for a 100 MW, 129 MWh storage facility in Australia, which would overtake the AES facility as the largest lithium battery when completed.
Fluence will offer both the AES’ Advancion and Siemens’ Siestorage energy storage platforms for sale to third party customers, as well as continue to develop new energy storage solutions and services, Goldman said.
After the new company is formed, AES Corp. subsidiary AES Energy Storage will no longer operate as an independent unit. AES also owns seven utilities — two in the U.S. — and has a generation portfolio of more than 30 GW.
At that point, Fluence will be an independent company that will “bring together the teams and technologies from the respective business units at AES and Siemens, and have strong support from both parent companies,” Goldman said.