U.S. Battery Storage Industry Faces Challenges Amid Rising Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: Newsfilter
- Surging Battery Demand: Power demand from data centers is projected to reach 9% to 17% of U.S. electricity supply by 2030, equating to up to 790 terawatt-hours (TWh), significantly boosting the demand for battery storage systems, particularly in renewable-rich regions like California.
- Supply Chain Bottlenecks: While the U.S. is scaling up lithium-ion phosphate battery manufacturing, the supply chain for key materials remains heavily reliant on China, creating near-term bottlenecks as tax credit rules increasingly mandate non-China sourcing.
- Grid Connection Delays: In the U.S., while data centers can be built in 18 to 24 months, connecting to the grid can take three to seven years, with lengthy interconnection queues severely impacting the rapid deployment of battery storage projects.
- Strategic Investment and Expansion: Battery storage companies like Fluence are ramping up investments in domestic manufacturing to meet data center demand while calibrating offerings specifically for hyperscalers, demonstrating strong market adaptability.
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Analyst Views on FLNC
Wall Street analysts forecast FLNC stock price to fall
18 Analyst Rating
3 Buy
12 Hold
3 Sell
Hold
Current: 21.360
Low
8.00
Averages
16.25
High
26.00
Current: 21.360
Low
8.00
Averages
16.25
High
26.00
About FLNC
Fluence Energy, Inc. is a global provider of energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, the Company provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and artificial intelligence (AI)-enabled optimization software for managing and optimizing renewables and storage from any provider. Its offerings include energy storage products and solutions, delivery services, recurring O&M services, and digital applications and solutions for energy storage and other power assets. Its energy storage solutions include Gridstack Pro, Gridstack, Sunstack, Edgestack, and Ultrastack. In addition, each of its energy storage solutions comes with its proprietary energy management system, Fluence OS. The Company’s cloud-based software products include Fluence Mosaic and Fluence Nispera.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Nuclear Opportunities for BWX Technologies: With the U.S. planning to quadruple nuclear capacity by 2050, BWX Technologies is poised to benefit from this trend due to its specialized equipment for nuclear reactors, and its role as the exclusive nuclear fuel supplier for the U.S. Navy ensures a steady revenue stream.
- Market Outlook for Fluence Energy: Fluence Energy, focusing on renewable energy and reliable power solutions, has a record total order backlog of $5.6 billion; as demand for power from data centers increases, the company is developing dedicated battery systems to meet market needs and enhance long-term revenue.
- Investment Trends in the Industry: The U.S. government's encouragement of domestic manufacturing investment and increased defense spending provides strong support for industrial companies, particularly against the backdrop of rapid AI and data center construction, which is expected to further drive growth for these firms.
See More
GE Vernova and Others Benefit from AI Surge
- Strong Demand for GE Vernova: GE Vernova's gas turbines are favored by hyperscalers, with a backlog exceeding $163 billion, highlighting the company's leadership in electric power infrastructure and expected to drive future growth.
- Opportunities in Nuclear Market: BWX Technologies, as the sole nuclear fuel provider for the U.S. Navy, ensures a steady revenue stream through its 70-year unique position, while expanding into the small modular reactor market provides new growth avenues.
- Fluence Energy's Innovations: Fluence Energy offers grid-scale energy storage solutions that help data centers tackle grid capacity bottlenecks, with a record backlog of $5.6 billion indicating strong demand in the renewable energy sector.
- Policy Support and Market Outlook: The U.S. government encourages investment in domestic manufacturing and increases defense spending, creating a favorable environment for industrial companies, particularly in the context of AI and nuclear expansion, which is expected to drive long-term growth for related firms.
See More
U.S. Battery Storage Industry Faces Challenges Amid Rising Demand
- Surging Battery Demand: Power demand from data centers is projected to reach 9% to 17% of U.S. electricity supply by 2030, equating to up to 790 terawatt-hours (TWh), significantly boosting the demand for battery storage systems, particularly in renewable-rich regions like California.
- Supply Chain Bottlenecks: While the U.S. is scaling up lithium-ion phosphate battery manufacturing, the supply chain for key materials remains heavily reliant on China, creating near-term bottlenecks as tax credit rules increasingly mandate non-China sourcing.
- Grid Connection Delays: In the U.S., while data centers can be built in 18 to 24 months, connecting to the grid can take three to seven years, with lengthy interconnection queues severely impacting the rapid deployment of battery storage projects.
- Strategic Investment and Expansion: Battery storage companies like Fluence are ramping up investments in domestic manufacturing to meet data center demand while calibrating offerings specifically for hyperscalers, demonstrating strong market adaptability.
See More
AI Investment Fuels Surge in Energy Spending
- Surge in Capital Expenditure: BNP Paribas reports that AI-related capital expenditures are projected to reach $725 billion by 2026, nearly doubling last year's estimate of $365 billion, indicating robust investment demand in the energy sector.
- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
Fluence Energy Announces Public Offering of 20 Million Shares
- Offering Size: Fluence Energy has announced a public offering of 20 million shares of Class A common stock at a price of $21.00 per share, indicating the company's active engagement in the capital markets, although it will not directly benefit from this 100% secondary offering.
- Underwriter Lineup: The offering is being managed by prominent financial institutions including Barclays, Morgan Stanley, and Goldman Sachs, which enhances market confidence in Fluence, with the offering expected to close on May 15, 2026.
- Additional Share Option: The selling stockholders have granted underwriters a 30-day option to purchase an additional 3 million shares, a flexible arrangement that may further enhance market liquidity and reflects expectations for Fluence's future growth.
- Registration Statement Validity: The automatic shelf registration statement filed by Fluence with the SEC on May 12, 2026, has become effective, ensuring compliance for this offering and demonstrating the company's diligence in adhering to regulatory requirements.
See More
Fluence Energy Launches 20 Million Share Public Offering
- Public Offering Announcement: Fluence Energy has announced an underwritten public offering of 20 million shares of its Class A common stock by certain controlling stockholders, which is expected to provide additional capital to support future growth.
- Additional Purchase Option: The selling stockholders are expected to grant underwriters a 30-day option to purchase an additional 3 million shares, a flexibility that may further enhance market demand for the stock.
- Market Reaction: Following the public offering announcement, FLNC shares fell 6.86% in premarket trading to $23.50, reflecting market concerns over the dilution effect of the offering, which could impact short-term stock performance.
- Strategic Implications: This offering not only provides Fluence Energy with necessary funding but also may help solidify its competitive position in the rapidly growing energy storage market by enhancing liquidity and market confidence.
See More
U.S. Industrial Companies Thrive Amid AI Surge
- Robust Demand for GE Vernova: GE Vernova focuses on energy solutions, with its electric power infrastructure technology supplying about 25% of global electricity; as demand for its gas turbines from data centers surges, the company boasts a backlog exceeding $163 billion, indicating strong growth potential in the coming years.
- Nuclear Opportunities for BWX Technologies: With the U.S. planning to quadruple nuclear capacity by 2050, BWX Technologies is poised to benefit from this trend due to its specialized equipment for nuclear reactors, and its role as the exclusive nuclear fuel supplier for the U.S. Navy ensures a steady revenue stream.
- Market Outlook for Fluence Energy: Fluence Energy, focusing on renewable energy and reliable power solutions, has a record total order backlog of $5.6 billion; as demand for power from data centers increases, the company is developing dedicated battery systems to meet market needs and enhance long-term revenue.
- Investment Trends in the Industry: The U.S. government's encouragement of domestic manufacturing investment and increased defense spending provides strong support for industrial companies, particularly against the backdrop of rapid AI and data center construction, which is expected to further drive growth for these firms.
See More
GE Vernova and Others Benefit from AI Surge
- Strong Demand for GE Vernova: GE Vernova's gas turbines are favored by hyperscalers, with a backlog exceeding $163 billion, highlighting the company's leadership in electric power infrastructure and expected to drive future growth.
- Opportunities in Nuclear Market: BWX Technologies, as the sole nuclear fuel provider for the U.S. Navy, ensures a steady revenue stream through its 70-year unique position, while expanding into the small modular reactor market provides new growth avenues.
- Fluence Energy's Innovations: Fluence Energy offers grid-scale energy storage solutions that help data centers tackle grid capacity bottlenecks, with a record backlog of $5.6 billion indicating strong demand in the renewable energy sector.
- Policy Support and Market Outlook: The U.S. government encourages investment in domestic manufacturing and increases defense spending, creating a favorable environment for industrial companies, particularly in the context of AI and nuclear expansion, which is expected to drive long-term growth for related firms.
See More
U.S. Battery Storage Industry Faces Challenges Amid Rising Demand
- Surging Battery Demand: Power demand from data centers is projected to reach 9% to 17% of U.S. electricity supply by 2030, equating to up to 790 terawatt-hours (TWh), significantly boosting the demand for battery storage systems, particularly in renewable-rich regions like California.
- Supply Chain Bottlenecks: While the U.S. is scaling up lithium-ion phosphate battery manufacturing, the supply chain for key materials remains heavily reliant on China, creating near-term bottlenecks as tax credit rules increasingly mandate non-China sourcing.
- Grid Connection Delays: In the U.S., while data centers can be built in 18 to 24 months, connecting to the grid can take three to seven years, with lengthy interconnection queues severely impacting the rapid deployment of battery storage projects.
- Strategic Investment and Expansion: Battery storage companies like Fluence are ramping up investments in domestic manufacturing to meet data center demand while calibrating offerings specifically for hyperscalers, demonstrating strong market adaptability.
See More
AI Investment Fuels Surge in Energy Spending
- Surge in Capital Expenditure: BNP Paribas reports that AI-related capital expenditures are projected to reach $725 billion by 2026, nearly doubling last year's estimate of $365 billion, indicating robust investment demand in the energy sector.
- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
Fluence Energy Announces Public Offering of 20 Million Shares
- Offering Size: Fluence Energy has announced a public offering of 20 million shares of Class A common stock at a price of $21.00 per share, indicating the company's active engagement in the capital markets, although it will not directly benefit from this 100% secondary offering.
- Underwriter Lineup: The offering is being managed by prominent financial institutions including Barclays, Morgan Stanley, and Goldman Sachs, which enhances market confidence in Fluence, with the offering expected to close on May 15, 2026.
- Additional Share Option: The selling stockholders have granted underwriters a 30-day option to purchase an additional 3 million shares, a flexible arrangement that may further enhance market liquidity and reflects expectations for Fluence's future growth.
- Registration Statement Validity: The automatic shelf registration statement filed by Fluence with the SEC on May 12, 2026, has become effective, ensuring compliance for this offering and demonstrating the company's diligence in adhering to regulatory requirements.
See More
Fluence Energy Launches 20 Million Share Public Offering
- Public Offering Announcement: Fluence Energy has announced an underwritten public offering of 20 million shares of its Class A common stock by certain controlling stockholders, which is expected to provide additional capital to support future growth.
- Additional Purchase Option: The selling stockholders are expected to grant underwriters a 30-day option to purchase an additional 3 million shares, a flexibility that may further enhance market demand for the stock.
- Market Reaction: Following the public offering announcement, FLNC shares fell 6.86% in premarket trading to $23.50, reflecting market concerns over the dilution effect of the offering, which could impact short-term stock performance.
- Strategic Implications: This offering not only provides Fluence Energy with necessary funding but also may help solidify its competitive position in the rapidly growing energy storage market by enhancing liquidity and market confidence.
See More
