Siemens-AES and Northvolt tie-up to develop grid-scale energy storage technology

Swedish battery start-up Northvolt and Siemens’ and AES’s energy storage joint venture Fluence have reached an agreement to co-develop next generation battery technology for grid-scale applications.

As part of the pact, Fluence also plans to purchase battery systems from Northvolt, but the company didn’t provide details on the volume of the supply deal.

The two companies will work together to develop Northvolt battery hardware and battery management systems for Fluence energy storage solutions. The agreement provides Nortvolt with an ‘unmatched channel’ to supply systems to the global market, the company said.

“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 Fluence chief executive Manuel Perez Dubuc.

“This integrated approach to optimise 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.”

“In order to reach the [targets of the] Paris Agreement, the world needs to make significant investments in building truly sustainable energy grids. And battery systems will play a crucial part in that process,” said Northvolt CEO Peter Carlsson.

“With their technology and reach, Fluence is the perfect partner to help put these solutions in the hands of a large number of customers, and thereby drive the change on the scale that we need.”

Both companies will continue to cooperate with OEMs globally to evolve batteries and energy storage systems, and will be able to integrate the learnings from the co-development to speed up the transition to a sustainable society, Northvolt added.