Fluence Energy, Inc. (FLNC) Business

ITEM 1. BUSINESS

Inception and Organization

Fluence Energy, Inc., a Delaware corporation (the “Company”), was initially formed on June 21, 2021 and completed its initial public offering (the “IPO”) on November 1, 2021. We conduct our business operations through Fluence Energy, LLC and its direct and indirect subsidiaries. Fluence Energy, LLC was formed on June 30, 2017 as a joint venture between Siemens Industry, Inc. (“Siemens Industry”), an indirect subsidiary of Siemens AG (“Siemens”), and AES Grid Stability, LLC (“AES Grid Stability”), an indirect subsidiary of The AES Corporation (“AES”), and commenced operations on January 1, 2018. We refer to Siemens Industry and AES Grid Stability as the “Founders” in this Annual Report and together with Qatar Holding LLC (“QHL”), an affiliate of the Qatar Investment Authority (“QIA”), they are collectively referred to as the “Continuing Equity Owners.” As the sole managing member of Fluence Energy, LLC, Fluence Energy, Inc. operates and controls all the business and affairs of Fluence Energy, LLC and its direct and indirect subsidiaries. As a result, Fluence Energy, Inc. consolidates Fluence Energy, LLC and records a non-controlling interest in its consolidated financial statements for the economic interest in Fluence Energy, LLC held by the Founders. Except where the content clearly indicates otherwise, any reference in this Annual Report to “Fluence,” “we,” “us,” “our” or “the Company” refers to Fluence Energy, Inc. and all of its direct and indirect subsidiaries, including Fluence Energy, LLC.

Overview

Fluence is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. Our energy storage solutions and operational services are designed to help create a more resilient grid and unlock the full potential of renewable portfolios.

As of September 30, 2025, we had 6.8 gigawatts (“GW”) of energy storage assets deployed and 9.1 GW of contracted backlog across 33 markets in 25 countries with a gross global pipeline of 128.8 GW. As of September 30, 2025, our global operational and maintenance (“O&M”) services team was providing services for 5.6 GW of energy storage assets, with a further 7.0 GW of contracted backlog. As of September 30, 2025, we had an aggregate of 22.0 GW of renewable energy assets using Fluence digital offerings and 12.1 GW of contracted backlog related to renewable and energy storage assets using Fluence digital offerings.

Our Industry and Market Opportunity

Our Industry

The utility-scale battery storage industry continues to experience unprecedented growth fueled by (i) the global transition toward renewable energy, (ii) heightened focus on grid resilience, (iii) declining lithium-ion battery prices, (iv) increased electricity demand, and (v) supportive regulatory frameworks.

Energy Storage Market Opportunity

We believe the energy storage market is comprised of three main elements:

•Energy storage solutions — the components (including batteries), professional services, and labor required to manufacture, assemble, and install energy storage systems. The energy storage solutions market is driven by the deployment of new energy storage solutions globally and its addressable market is comprised of the annual spend associated with the manufacturing, delivery, and installation of new energy storage solutions. BloombergNEF estimated in its 2H 2025 Energy Storage Market Outlook published on October 20, 2025 that the global utility scale market, excluding China, will add approximately 3,201 GWh between 2024 and 2035.

•Services — recurring O&M services that energy storage solutions require and asset management services that are provided by third parties when asset owners outsource the operations of their systems. The services market element is driven by growth in installed energy storage solutions globally and its addressable market is comprised of the recurring annual service spend across the entire fleet of energy storage projects, which continues to grow through new installations.

•Digital applications and software — cloud-based software that help asset owners optimize the performance of their systems and portfolios, including asset performance management (“APM”) software and intelligent forecasting and bid optimization software for asset trading applications. Cloud-based software applications can be deployed on both energy storage assets and renewable assets. The digital applications sector is driven by the growth in installed energy storage solutions and renewable assets, and its addressable market is comprised of the total global installed fleet of energy storage solutions and renewable assets. We believe there is an opportunity to not only deploy digital offerings and software solutions on individual assets but also across entire energy storage fleets and portfolios of generation assets to improve both performance and economic output, as well as to reduce the total cost of ownership (“TCO”) of the asset with improvements in both service productivity and with

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enhanced predictive maintenance, and the opportunity to reduce the overall carbon footprint of the portfolio by optimizing various asset types.

As described above, we believe there are multiple key factors driving continued growth in the energy storage sector, including, but not limited to:

•Global Transition Toward Renewable Energy: The ongoing transition from fossil to renewable generation is expected to continue to require significant increases in energy storage capacity to both offset potential grid instability caused by intermittent renewable resources and enable the use of power from renewable generation assets at times when natural resources may be unavailable. Energy storage will be essential in managing variations in renewable electricity output.

•Grid Resilience: Growing capacity constraints on existing power grids that were not designed to support distributed and renewable generation infrastructure or technologies, such as electric vehicles, position energy storage assets as a key solution.

•Declining Lithium-Ion Battery Prices: Growth of the industry and the continued adoption of energy storage solutions by our customers is driven by the declining cost of the lithium-ion energy storage hardware, mainly the cost of lithium-ion batteries. The cost of lithium-ion energy storage hardware has declined significantly in the last decade and has resulted in a large addressable market today. In fiscal year 2022, we saw prices for lithium-ion batteries increase from prior years, though prices returned to their historical trend of declining year-over-year in fiscal years 2023 through 2025, due in part to manufacturing overcapacity and saturation in the market and lower cost of the underlying raw materials, including lithium as well as softening demand from the electric vehicle (“EV”) sector. The market for energy storage continues to rapidly evolve and while we believe lithium-ion battery costs will continue to decline over the long-term, they may not decline or decline at the rates we expect. If costs do not continue to decline long-term and instead remain steady or increase, as seen in fiscal year 2022, this could adversely affect demand for our products and services, our revenue, order intake, our market share, and ability to grow our business.

•Increased Electricity Demand: Driven by factors such as the rise of data centers and AI. The surge in demand for electricity increases the need for energy storage systems to ensure grid stability, manage peak loads and provide reliability to power grids, especially during periods of elevated use. There is significant need for technology solutions that can be deployed in the next 5 years to keep up with AI data center build out and energy storage is well suited to be deployed at scale in this timeline. According to a publication from the U.S. Department of Energy in April 2024, electricity demand is forecasted to grow substantially in the United States over the next decade. This is being driven to some extent by data centers and AI, in another report by the U.S. Department of Energy in December 2024, data centers are expected to consume approximately 6.7% to 12% of total U.S. electricity by 2028. We are seeing similar trends of increasing electricity demand in other countries, including those in which we operate.

•Supportive Regulatory Frameworks: Governments across the globe have announced legislation, policies, and initiatives that are supportive of the transition from fossil fuels to low-carbon forms of energy and support specifically energy storage deployment and development. Such government policies, regulations, legislation, and programs have become increasingly instrumental in stimulating adoption of energy storage solutions across different markets through a variety of methods, including by providing financial support and incentives, including tax incentives, facilitating grid integration, supporting research and development, and establishing favorable regulatory regimes.

Our Products and Services

Our business continues to evolve worldwide and is shaped by the varying ways in which our products can provide economically viable solutions to energy needs in certain markets. Our offerings include energy storage products and solutions, recurring O&M services, and digital applications for energy storage and other power assets. We may refer to our energy storage systems as “energy storage solutions” and use this term interchangeably as it is more reflective of the full offering available and provided to our customers. We may also refer to battery-based energy storage systems, systems, integrated systems, enclosures, and cubes interchangeably. We have repeatedly pioneered new use cases for grid-scale energy storage. Some of the uses we have supported include frequency regulation, generation enhancement, capacity peak power, energy cost control, microgrids/islands, renewable integration, virtual dams, transmission and distribution (“T&D”) enhancement, and critical power.

Energy Storage Solutions

We sell configurable energy storage solutions with integrated hardware, software, and digital intelligence. Fluence’s energy storage solutions are built on years of development of prior generations, and reflect, among other things, ongoing safety and design improvements. We believe that Fluence’s energy storage solutions make it simpler for customers to deploy storage faster and more cost effectively without sacrificing quality and configurability. Our storage technology lays the foundation for better energy storage solutions with industry-leading safety, integrated controls systems, and factory-built, modular building blocks. By pairing the benefits of mass production with the flexibility of a configurable system architecture, we believe we are able to serve the diverse needs of

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customers around the world from a single, underlying product platform. Our energy storage solutions are optimized for common customer applications but can be configured for specific use cases and requirements. Our current solutions include:

•Gridstack Pro®: Energy storage solution designed for large-scale front-of-the-meter applications. Gridstack Pro is sold to independent power producers (“IPPs”), developers, utilities, and other generators, and is designed to improve density and system performance with both 2- and 4-hour product configurations. Gridstack Pro is intelligent energy storage for MW to GW scale projects with balanced power to energy matching and increased site density. This solution combines state-of-the-art battery modules, management systems, and monitoring equipment into a fully unified architecture designed to improve operations and system safety. It includes a system of multiple interoperable enclosures that provide different energy capacities and densities for diverse global project needs. Gridstack Pro® 2000 series utilizes the Fluence-designed Battery Packs.

•Gridstack®: Energy storage solution designed for front-of-the-meter applications. This solution is sold to IPPs, developers, utilities, and other generators to deliver energy, capacity, and ancillary services in both regulated and deregulated electricity markets globally. Gridstack’s industrial-strength design is built for demanding front-of-the-meter energy storage applications including, but not limited to, flexible peaking capacity, frequency regulation, and renewable integration.

•Ultrastack®: Designed to meet the critical system requirements of distribution and transmission networks, including stringent requirements around availability, uptime, and information technology (“IT”) security, and advanced controls applications that deliver a suite of highly technical grid services, such as synthetic inertia and power oscillation damping.

•Smartstack™: Announced during fiscal year 2025, this platform reflects a revolutionary split architecture design, incorporating embedded intelligence and higher energy density compared to traditional AC systems. This architectural design separates critical control systems from battery packs, and it combines a comprehensive network of sensors paired with edge computing to deliver real-time insights about all aspects of operation, security, and performance.

In addition, each of our energy storage solutions comes with our proprietary energy management system, Fluence OS, which enables asset owners to operate the storage system directly with pre-set modes and market dispatch applications or integrate directly with external ISO and EMS signals. Fluence OS provides real-time information through multiple systems views, alarm notifications, and dashboards. It is an integral part of all our energy storage solutions. Fluence OS enables Fluence energy storage solutions to deliver critical grid services such as primary frequency regulation, secondary frequency response, fast frequency response, peak shaving, voltage regulation, power factor regulation, non-spinning reserves, capacity peak power, solar energy time-shifting, firm solar export, and more.

Advanced safety features in all Fluence storage solutions work together to prevent, detect, and contain thermal events, minimizing damage and downtime. Fluence completes fire testing at the cell, module, unit, and installation levels for all systems. Fire testing incorporates the UL9540A standard and goes beyond industry standards with the purposeful inception of a full-scale fire to measure propagation, safe distances, gas emissions, incident times, and safety practices.

Fluence-designed Battery Pack

Our Fluence-designed Battery Packs are used in our Gridstack Pro 2000 solutions for optimized system performance and supply chain agility. The Fluence-designed Battery Packs combine state-of-the-art battery modules, management systems, and monitoring equipment into a unified product architecture designed to improve operations through advanced thermal and state of charge (“SOC”) management, which is intended to promote consistent product performance and safety at the system level. We initiated domestic production of these battery modules at our contract manufacturer’s facility in Utah in September 2024 and are incorporating battery cells manufactured in Tennessee for our domestic content offering in the U.S. We believe this will allow Fluence and its customers to capture certain incentives under the IRA, as amended by the OBBBA.

Services

In addition to energy storage solutions, our offerings include recurring operational and maintenance services. Our recurring operational and maintenance services are designed around customer business needs, in-house capabilities, performance requirements, and risk profiles. Our service plans provide varying levels of training, maintenance, guarantees, warranties, and support to address our customers’ desired level of active system management. Service levels range from providing comprehensive training for customers to performing all preventative and reactive maintenance, which includes comprehensive performance guarantees, system testing, and equipment warranties. All service plans we provide include remote monitoring and diagnostic services, which includes 24/7 real-time monitoring, diagnostics, and customer support to optimize the availability, reliability, and performance of battery energy storage systems for asset owners and operators.

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Digital Application Offerings

Software-as-a-service (SaaS) products for renewables and storage are critical for helping asset owners and managers navigate the complex, volatile, and quickly scaling nature of the clean energy market. As portfolios of renewable and storage assets continue to scale across the globe, we believe that asset owners and managers will require SaaS products that optimize the performance of such assets to maximize their revenues and lower their overall cost of ownership. Our digital applications allow us to offer digital capabilities that can be combined with our energy storage solutions and services to optimize revenue and lower the total cost of ownership and thereby provide our customers with enhanced value. Our Fluence digital offerings encompass proprietary machine learning, AI, data science technologies, and applied engineering to enable the advanced capabilities of our two cloud-based software products: Fluence Mosaic and Fluence Nispera.

Fluence Mosaic is an intelligent energy forecasting, bid optimization software and service offering for utility-scale storage and renewable assets, enabling customers to optimize asset trading in wholesale electricity markets. Fluence Mosaic is currently available in the NEM (Australia), CAISO (California), ERCOT (Texas), and Japan.

Fluence Nispera is our asset performance management (APM) software and related support team. Fluence Nispera helps customers improve how they monitor, analyze, and optimize the performance of their assets by providing greater visibility to equipment performance, enhancing ability to detect and prevent failures using advanced machine learning methods and AI tools to improve productivity and lower their TCO over the life of the asset. Fluence Nispera is an AI-driven utility-scale asset performance management platform that supports portfolios of energy storage, solar, and wind assets.

Our Growth Strategy

Our growth strategy includes leveraging our global scale, product development, and market share position to help transform the way we power our world for a more sustainable future. We have a number of core geographic markets with strong experience, market share, and demonstrated success which will continue to be a focus for us. As the cost of energy storage systems continues to decrease, we believe additional markets will scale and offer us additional opportunities for expansion.

We target new customers as the number of IPPs, utilities, and other key energy customers buying battery energy storage solutions continues to grow substantially throughout the world, including as a result of the rising demand for electricity and energy storage resulting from the expansion of data centers and traditionally focused renewable and thermal developers add energy storage to their portfolios.

Additionally, we develop and innovate to provide energy storage solutions and digital software offerings that aim to solve our customers’ energy challenges and expand our services with additional value-add offerings. We intend to continue to grow our customer base through new product launches and are also focused on expanding our business with standardized offerings that are optimized for each of our sales channels, and on moving towards an organizational structure better designed to support specific customer types, improving logistics, and enhancing market focus.

Our Customers

We sell our energy storage solutions, services, and digital offerings to a wide range of customers around the world, including utilities and load-serving entities, IPPs, developers, conglomerates, and commercial and industrial (“C&I”) customers. In fiscal year 2025, our two largest customers represented approximately 41% of our revenues. In addition, as of September 30, 2025, approximately 24% of our revenue was with related parties, primarily AES and its affiliates. As of September 30, 2025, the Company had $5.3 billion of remaining performance obligations related to our contractual commitments, which we refer to as our backlog, of which 13% is with AES. As of September 30, 2025, we had a gross global pipeline of 128.8 GW, which includes 65.1 GW for energy storage solutions and services. Of the energy storage solutions and services global pipeline, United States customers composed the largest portion of our pipeline at 16.1 GW or approximately 25%, with Australia customers following at 13.8 GW or 21%, and Germany customers at 7.9 GW or 12%.

Sustainability

We are a purpose-built, purpose-driven company on a mission to transform the way we power our world for a more sustainable future. The Company’s offerings are intended to enable and promote more sustainable, reliable, and resilient electric grids and infrastructure in a repeatable, scalable way. Our sustainability vision is grounded in data-driven accountability and transparency, which is intended to help guide us to evaluate our business holistically and prioritize sustainable practices across our organization. Our internal sustainability program is built upon three key pillars: (i) reporting & stakeholder engagement; (ii) environmental stewardship & compliance; and (iii) responsible sourcing & social compliance. Our ESG Steering Committee is responsible for prioritization and promoting alignment regarding sustainability initiatives and priorities across all internal stakeholders. The ESG

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Steering Committee is comprised of five management leaders (our Chief Executive Officer, Chief Financial Officer, Chief Human Resources Officer, Chief Product and Supply Chain Officer, and Chief Legal and Compliance Officer).

During fiscal year 2024, we developed our responsible sourcing framework and implemented it for our key strategic suppliers and later in the fiscal year, we advanced the responsible sourcing program by extending further into our supply chain to regional suppliers and logistics providers. We believe our responsible sourcing strategy sets expectations for our supply chain and drives accountability among our suppliers. As part of this program, we have developed a rigorous system of supplier selection, engagement, education, assessments, and auditing. Our sustainability team and our supply chain team members work closely together to advance our responsible sourcing mission.

Human Capital

We believe our workforce is critical to our success and we strive to create a positive, equitable, and safe work environment. To create a culture of transparency, we maintain a regular cadence of communications from the executive leadership team to our employees, including emails, all hands meetings, Q&A sessions, and employee resource groups with executive sponsors.

As of September 30, 2025, we had approximately 1670 full-time employees across 15 different countries. None of our employees in the United States are represented by a labor union. As of September 30, 2025, approximately 140 of our employees in Germany were represented by a works council. We have not experienced any employment-related work stoppages, and we consider relations with our employees to be good. As of September 30, 2025, women represent 28% and men represent 72% of our total workforce.

Fluence is committed to cultivating an inclusive culture for our workforce. During fiscal year 2024, we adopted a more comprehensive culture, equity, and inclusion (CEI) approach, emphasizing a global perspective. This holistic approach reflects the different expectations and needs of our varying international operations, rooted in a foundation of applicable employment and civil rights laws, positioning us to continue to build a cohesive and respectful work environment that drives innovation and performance across all regions. We believe this holistic cultural approach positions the Company to attract, retain, and engage top talent from around the world while contributing to a more equitable and inclusive global energy sector.

Fluence is committed to supporting the well-being and professional growth of our employees through regionally tailored benefit offerings, with programs designed to reflect local market practices and regulatory standards.

Our incentive plans, including our executive compensation programs, are designed to deliver pay for performance and for employees at certain levels and within certain departments at Fluence, we offer annual incentives and long-term compensation to reinforce the alignment between our employees and the Company’s long-term financial and strategic growth.

Fluence is internationally certified to ISO 9001, a quality management standard focused on commitment to customer satisfaction, purpose-driven leadership, and equitable involvement for all employees. Fluence’s corporate headquarters is certified to SA8000, which is a standard focused on the fair and decent treatment of workers.

Safety

Fluence promotes progressive health, safety and environmental management in our operations. We are committed to reducing hazards and minimizing risks. Our safety management system, anchored in a plan-do-check-act methodology, is intended to encourage the active involvement of stakeholders. Incorporated into our framework are our Fluence Code of Conduct and Ethics and a stop work authorization. Fluence is also internationally certified to ISO 45001, an occupational health and safety standard which requires certain proactive measures to promote employee safety and reduce workplace risks. We seek to empower our employees to voice safety concerns and we emphasize transparent communication, purposeful education, continuous training, and harnessing lessons from past experience to promote safety in our operations. Fluence also engages proactively with permitting authorities and first responders through comprehensive training programs on battery storage safety and operations, covering system design, failure modes, and incident response to ensure effective hazard management.

Manufacturing

Mass manufacturing has been and continues to be a cornerstone of our product delivery approach and a key to driving down product cost and delivering at scale. Our manufacturing strategy has historically been designed to meet certain key objectives: (i) limit capital-intensive and low value-added activities that can be outsourced (ii) maintain a capital light business model, (iii) minimize labor and automate where possible, (iv) minimize the level of integration and assembly required at a project site, and (v) minimize materials and inventory movement. As part of these strategic objectives, we rely on third party contract manufacturers to support production across multiple product lines and geographies.

In September 2022, we established a relationship with a contract manufacturer on a new manufacturing facility in Salt Lake City, Utah. The Salt Lake facility supported regional domestic deliveries and helped us address previous supply chain constraints. In 2024 we added a second contract manufacturer for expanded manufacturing operations in Arizona. This second contract manufacturer in Arizona commissioned their new facility in 2025, and began scaling production.

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The onshoring of additional manufacturing capacity expands our assembly and production beyond Asia to meet increasing global demand. While the Company continues to evaluate and optimize its manufacturing footprint, these developments reflect a strategic commitment to operational scalability and risk mitigation.

In addition, we continue to use a contract manufacturer in South East Asia to support our global customer base.

As we move into fiscal year 2026, our contract manufacturing operations continue to evolve in response to changing customer requirements, technology advancements and global supply chain and geopolitical dynamics. We recognize the growing importance of flexible and resilient manufacturing networks. This shift toward a more flexible and distributed manufacturing model is intended to enable us to scale production more efficiently, access specialized capabilities, and respond more rapidly to market fluctuations. We are actively working with our contract manufacturers to implement advanced manufacturing technologies, including automation, digital quality control systems, and integrated planning platforms, in order to improve throughput, consistency, and traceability. As our reliance on contract manufacturing continues, we are also enhancing our oversight and governance frameworks to support compliance with our quality standards, regulatory obligations, and sustainability goals. This includes supplier audits, expanded data-sharing protocols, and collaborative risk management practices.

Supply Chain

Our energy storage business is supported by a strategically diversified and increasingly resilient global supply chain. As demand for grid-scale and commercial energy storage solutions continues to accelerate, we continue to expand our procurement and supplier engagement activities to support continuity, scalability, and innovation across key components, including battery systems, inverters, and thermal management technologies. Many components and parts of our integrated energy storage solutions are sourced from suppliers and stakeholders from all over the world and are reliant on various raw materials including steel, aluminum, copper, nickel, iron phosphate, graphite, manganese, lithium carbonate, lithium hydroxide, and cobalt.

We source lithium-ion battery cells and modules from a mix of Tier 1 global manufacturers, with a focus on suppliers that demonstrate strong ESG compliance, and long-term capacity commitments. We have continued to expand our battery supplier base, which includes existing suppliers in North America and new suppliers in Asia, reducing reliance on single source and single-region sourcing. Inverters are also critical to the performance and grid compatibility of our energy storage systems. We maintain relationships with leading inverter manufacturers across Europe, North America, and Asia. In fiscal year 2025, we broadened our sourcing outlook to include modular and hybrid inverter platforms. Effective thermal regulation is furthermore essential for battery performance, safety, and longevity. We procure thermal management components—including liquid cooling systems, heat exchangers, and control units—from specialized vendors with expertise in high-density energy applications. In fiscal year 2025, we onboarded new suppliers with advanced thermal modeling capabilities and expanded our U.S. domestic sourcing footprint to support U.S. based manufacturing initiatives for thermal management systems. These efforts align with our broader strategy to localize critical supply chains and reduce carbon intensity.

We believe that regionalization allows Fluence to assemble products in proximity to major markets to minimize material movement, working capital investment, and cost of goods sold. We continue to work to align our procurement strategy with federal initiatives under the OBBBA, the IRA and Section 45X advanced manufacturing production tax credits (“the AMPC”). Our current U.S. domestic manufacturing operations include suppliers, contract manufacturers and their facilities in Arizona, Texas, Tennessee, South Carolina and Utah. We continue to explore additional U.S. based supply arrangements for our future U.S. operations. We believe that continued expansion and emphasis on domestic content under the IRA, as modified by the OBBBA, will provide Fluence with a competitive advantage. Our procurement operations, however, remain subject to a complex and evolving supply chain and regulatory landscape.

As of the date of this Annual Report, we believe that we have adequate access to our key components to meet the needs of our operations and demand of our customers.

Intellectual Property

The success of our business depends, in part, on our ability to maintain and protect our proprietary technology and intellectual property, some of which include patents, patentable ideas, methods, and technologies, proprietary information, trade secrets, trademarks, copyrights, processes and know-how. We rely primarily on a combination of patent, trademark, copyright, unfair competition, and trade secret laws, as well as confidentiality agreements and procedures and other contractual arrangements with our employees, contractors, and third parties, to establish, maintain, and protect our methods, technology, and proprietary rights.

As of September 2025, we held over 165 granted patents worldwide and had over 161 patent applications pending with domestic and foreign patent offices. As of September 30, 2025, we also had over 114 registered trademarks with domestic and foreign trademark offices. Such trademarks include Fluence, Gridstack, and many other marks. We rely on both registration of our marks as well as common law protection where available.

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Additionally, we rely on trade secret protection and confidentiality agreements to safeguard our interests with respect to proprietary know-how and software that are not patented and processes for which patents are difficult to enforce. We believe that many elements of our manufacturing processes involve proprietary know-how, technology, or data that are not covered by patents or patent applications, including technical processes, test equipment designs, algorithms, and procedures. We pursue intellectual property protections that are aligned and advantageous to our business objectives and we require our customers and business partners to enter into confidentiality agreements before we disclose sensitive aspects of our technology or business plans. We may take legal action to prevent third parties from infringing or misappropriating our intellectual property or from otherwise gaining access to our technology. Furthermore, during onboarding, Fluence employees agree to assign all the inventions, designs, and technologies they develop during the course of employment with us, to Fluence.

Fluence also has a series of intellectual property related assignments and licenses with Siemens and AES that were entered into in 2021. From time to time, we may enter into research and development agreements with our related parties, pursuant to which we may collaborate on evaluating and developing energy storage solutions.

On April 6, 2021, we entered into a patent assignment agreement with Siemens pursuant to which Siemens assigned, sold, and transferred to us the entire right, title, and interest in the United States and all foreign countries, in and to any and all inventions and improvements disclosed in certain identified patent applications, pending patent applications, and granted letter patents. On June 9, 2021, we entered into amended and restated intellectual property license agreements with each of Siemens and Siemens Industry pursuant to which Siemens entities granted the Company worldwide, non-exclusive, non-transferable, perpetual, royalty-free licenses to conduct certain non-exclusive activities for certain permitted business purposes and to engage in permitted sublicensing thereunder, subject to various exceptions. Similarly, we granted Siemens and Siemens Industry perpetual, non-exclusive, worldwide, non-transferable (subject to certain exceptions under the respective agreements), and sublicensable rights to do any acts within the current and future fields of the respective businesses of the Siemens group, which are not activities which are exclusive to us and which would otherwise infringe any of the contributed intellectual property, respectively, under fair, reasonable and non-discriminatory royalty terms.

On September 9, 2021, we entered into an intellectual property assignment agreement with AES (the “Patent Transfer Agreement”), whereby AES assigned certain intellectual property to Fluence that we had previously utilized through a license from AES. In connection with the Patent Transfer Agreement, we entered into a license-back agreement with AES, whereby we granted AES with a worldwide, exclusive (except with respect to the Company), perpetual, irrevocable, sublicensable, non-transferable (except in certain situations), royalty-free, fully paid up license under the 'licensed patents' to develop, improve, make, have made, sell, offer for sale, distribute, import and use 'licensed products' and 'licensed processes', and otherwise commercially exploit the 'licensed patents' in a non-exclusive field of business.

On October 27, 2021, we amended our existing Company Name Affix and Trademark License Agreements with each of AES and Siemens. Pursuant to these amended agreements, we are granted the right to use the AES and Siemens marks in the Fluence “name affix”. Pursuant to the Siemens agreement, we are licensed the mark “Siestorage” and pursuant to the AES agreement, we are licensed the use of “AES Energy Storage.”

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Competition

The energy storage sector is highly competitive and continuously evolving. Our energy storage products, solutions, services, and digital applications are designed to meet the unique demands of the energy industry. The intricacy involved in the design and integration of our offerings underscores their technical complexity. Nevertheless, new companies enter the market continuously and offer products and services that may compete with ours. We remain committed to innovation in the design of our battery energy storage systems and exploring underserved market segments and use cases, many of which present lower levels of competition. We believe that competitive factors in the energy storage market include, but are not limited to:

•safety, reliability, and quality;

•price of energy storage solutions, services, and digital application offerings;

•total cost of ownership;

•ability to obtain and maximize financing based on system and Company performance;

•integration approach (including if competitor has vertical integration);

•performance guarantees, credit support, and product warranties;

•site density capability; alternative duration success

•shortened delivery, installation, and commissioning time;

•stability in supply chain; approach to responsible sourcing and supply chain due diligence;

•historical customer track record (as the market and industry continues to grow);

•experience in the battery energy storage system market (of the respective competitor and the leadership team);

•technological expertise and innovation;

•comprehensive solutions and offerings from a single provider to scale with; ease of integration;

•brand recognition;

•ability to take advantage of certain government initiatives and tax credits, including those under the IRA and OBBBA;

•size of projects companies are competing on;

•cybersecurity components of energy storage solutions and components; and

•seamless hardware and software-enabled service offerings.

The competitive landscape for battery energy storage is broad and varies significantly across geographies, countries, grid services, and customer segments. As global demand for energy storage accelerates, the industry is experiencing heightened competition from both established players and new entrants. Certain competitors are larger in scale, particularly in certain regions. Additionally, some have greater manufacturing experience and capabilities in developing or acquiring new technologies and generating market awareness for their solutions.

Several competitors, especially those with ties to China, benefit from vertically integrated supply chains and state support. Historically, the lithium-ion battery cell supply chain has been heavily concentrated in China, encompassing everything from raw material processing to anode/cathode production and cell manufacturing. This integration has enabled many Chinese competitors to offer energy storage solutions at prices lower than other market participants. If Chinese competitors offer lower prices, bid below cost, or operate at sustained losses, it could negatively affect our pricing flexibility, market share, and overall financial performance.

Our key competitors currently include, but are not limited to, Tesla, Inc., Wärtsilä, Sungrow, and Contemporary Amperex Technology Co., Limited (“CATL”). We believe we differentiate ourselves from our competitors through our ability to identify and meet customer needs with customized products, services, and use-case solutions. Our competitive advantage is rooted in delivering strong performance and value, supported by features such as a low total cost of ownership, long-term reliability, a broad range of service offerings, efficient sales and delivery processes, and cybersecurity capabilities within our energy storage solutions. Additionally, we expect that U.S. policies favoring domestic companies, such as the OBBBA and IRA, will continue to further enhance our competitive position in the U.S. market. Finally, the launch of our new innovative and market leading product Smartstack has successfully differentiated Fluence’s product offering versus standard market solutions.

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Regulation and Compliance

Our business operates within a constantly evolving landscape of laws and regulations at the federal, state, regional, local, and international levels. For instance, government policies, regulations, legislation, and programs are instrumental in stimulating adoption of energy storage solutions across different markets through a variety of methods, including by providing financial support and incentives, facilitating grid integration, supporting research and development, and establishing favorable regulatory regimes. In recent years, legislation and regulation addressing climate change have made lower GHG-emitting energy sources, such as solar and wind, increasingly desirable to consumers compared to higher GHG-emitting energy sources, such as coal and natural gas. The new U.S. presidential administration has announced plans to roll back various of these regulations; however, we cannot guarantee the ultimate timeline or impact of any such developments. Moreover, such efforts may spur stronger actions from other actors, including some state and local policymakers Legislation and regulations with more stringent limitations on GHG emissions may potentially increase the demand for energy storage solutions and related services. However, to the extent that any existing government incentives are modified, reduced, eliminated, or are permitted to expire or there is the potential of such modifications, reductions, eliminations or expirations, or there is determination of inapplicability of such government incentives or regulations relating to or mandating or encouraging use of renewable energy and/or energy storage, there have been and there may in future be adverse effects on customer demand and our business.

Additionally, as a global company, our business is impacted by any sanctions, tariffs, and other government-imposed trade measures—whether through international agreements or unilateral decisions. Changes in tax laws, trade policies, and government regulation relating to or encouraging use of energy storage have in the past and could negatively impact our business operations and financial performance.

In addition, the U.S. and many non-U.S. countries have laws designed to protect national security or to restrict foreign direct investment. For example, under the U.S. Foreign Investment Risk Review Modernization Act ("FIRRMA"), the Committee on Foreign Investment in the United States ("CFIUS") has the authority to review, block or impose conditions on investments by non-U.S. persons in U.S. companies or real assets deemed critical or sensitive to the United States. Many non-U.S. jurisdictions have similar laws.

We are also subject to a range of complex U.S. and international laws and regulations, including those related to anti-bribery and corruption, antitrust and competition, and data privacy and security—such as the EU General Data Protection Regulation (“GDPR”). We are also subject to various federal, state, local, and international laws and regulations relating to the protection of the environment and occupational health and safety and are subject to government policies or laws intended to protect human rights. For example, we are subject to the requirements of the federal Occupational Safety and Health Act, as amended, and comparable U.S. state laws that protect and regulate employee health and safety as well as comparable international laws that aim to protect and regulate employee health and safety. Changes in or adoption of domestic policies and policy initiatives, legislation and regulations on a federal, state, and local level as well as changes in or adoption of policies and policy initiatives, regulations and legislation in foreign jurisdictions in which we operate may pose risks or provide opportunities for the Company’s business that may impact our future operations and financial condition.

For more information about the potential risks of adoption or changes to such policies, government incentives, legislation and regulations, see Part I, Item 1A. “Risk Factors.”

Some of the key energy storage-related legislation, policies, regulations, and guidelines that have impacted and may in the future impact our business and demand for our offerings are set forth below.

Key U.S. Related Policies, Regulation, and Legislation

IRA and OBBBA

The U.S. Congress is continuously reviewing and passing various proposals, incentives, regulations, and legislation that may support the energy storage industry, including in the form of tax credits and incentives. For example, in August 2022, the United States passed the IRA, which included incentives that supported the adoption of energy storage solutions, including a new “technology neutral” Section 48E investment tax credit (the “ITC”) and Section 45Y production tax credit (the “PTC”), changes to the previous Section 48 non-“technology neutral” investment tax credit and Section 45 production tax credit, and the AMPC. On July 4, 2025, the OBBBA was signed into law, which significantly modified certain provisions of the IRA, including those related to energy storage. The OBBBA supports energy storage in the United States, as the bill includes long-term continued availability of the ITC for energy storage projects and the AMPC for domestically manufactured cells, modules, and inverters in energy storage systems. Certain tax credits, notably including the ITC for energy storage, will begin to phase down for projects that start construction (in accordance with Internal Revenue Services (“IRS”) guidance) in 2033. The prevailing wage and apprenticeship requirements enacted under the IRA continue to apply under the OBBBA for the project owner to receive the full ITC value, and the credit value can be further increased if the project owner also qualifies for a domestic content bonus credit and energy communities bonus credit. The OBBBA amended the provisions of the domestic content bonus credit for the ITC such that the project owner now must achieve higher minimum domestic

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content percentage thresholds. In addition, the OBBBA amended the ITC and AMPC establishing Prohibited Foreign Entity (“PFE”) restrictions.

The new PFE restrictions apply to virtually all key tax credits under the IRA and come in two forms: (i) for tax years beginning after July 4, 2025, the taxpayer taking the ITC and AMPC tax credit cannot be a PFE and (ii) for ITC projects that start construction in 2026 and after, and AMPC eligible components that are made and sold in the manufacturing facility’s tax year that begins after July 4, 2025, the ITC eligible project or AMPC eligible component must source a certain percentage of material from non-PFEs (known as the “material assistance”), and the percentage of material from non-PFEs increase annually over time. The OBBBA includes substantive details regarding PFE restriction compliance requirements and requires U.S. Department of Treasury to issue implementation regulations by December 31, 2026. In preparation for the potential application of PFE restrictions being applied to the energy storage tax credits arising out of the IRA, we developed a compliance strategy intended to address and mitigate risks relating thereto. We believe that under the current language of the OBBBA, which is subject to final rules and forthcoming guidance, certain of our U.S. domestic suppliers may be impacted by these new PFE restrictions. We are actively implementing our risk mitigation strategy with our U.S. suppliers utilizing the AMPC and working with such suppliers to achieve compliance with the OBBBA conditions for the AMPC, including the PFE restrictions, by the applicable compliance deadlines set forth in the OBBBA.

We believe we are well positioned to benefit from both the ITC provisions (including the revised domestic content bonus credit thresholds) and the AMPC, via our battery module manufacturing at our U.S. contract manufacturing facility, our supply agreement for U.S. manufactured battery cells, our supply agreement for U.S. manufactured inverters, and our complete U.S. supply chain of modules, cells, inverters, battery pack, enclosures, and thermal management systems.

Recent U.S. Tariffs and Trade Policies

In May 2024, the Biden administration announced a significant shift in the tariff framework for the energy storage industry. Under this structure, the Section 301 tariff rate on lithium-ion non-EV batteries imported from China would increase from the current 7.5% to 25%, effective January 1, 2026. This change specifically targeted "batteries" as defined by U.S. Customs and Border Protection, encompassing integrated battery energy storage systems, modules, and certain types of cells. Under the May 2024 structure announced by the Biden administration, the Section 301 tariff rate on battery "parts"–including separators, electrolytes, cans, and electrodes remains at its current 25% level. In April 2025, the Trump administration enacted additional tariffs on nearly all types of imports (including those used in our energy storage solutions) from countries around the world, including high tariffs on Chinese imports. Some of these additional tariffs have been modified further since they were imposed in April 2025. For example, in May 14, 2025, the United States and China agreed to reduce the reciprocal tariff rates between the countries, with the U.S. dropping the reciprocal tariff rate for Chinese imports to 10%, while maintaining the existing 20% fentanyl tariff on Chinese goods. As of the filing date of this Annual Report, covered imports from China relevant to our energy storage systems are subject to the current 10% China-specific “reciprocal tariff,” plus the current China-specific 10% “fentanyl-related tariff”, plus the 3.4% base tariff on all countries, plus the applicable Section 301 tariff. In addition, tariffs that have been imposed by the United States government against other countries have and may in the future increase, decrease, or change with little to no advance notice. The recent tariff policy changes and continued uncertainty relating to U.S. trade policy and the corresponding response from other foreign countries have impacted and may in the future impact the energy storage market, demand for our energy storage solutions by customers, our business, and results of operations as well as those of our customers, our contract manufacturers, and suppliers. The Company has exposure from the imposition of these new tariffs and from the tariff uncertainty in the global markets, as the Company imports components from overseas, including battery cells from China, into the United States for customers and projects in the United States. We may see impacts to customer contracting activity if there continues to be uncertainty relating to tariffs. This impact to customer contracting behavior from the uncertain trade environment has impacted and may in the future impact our revenue, business, operating metrics, and results of operations.

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In addition, currently there are ongoing investigations into certain additional tariffs on specific imports and trade practices that may result in tariffs and/or more restrictive trade duties and restrictions on components for our energy storage solutions that we import into the U.S. from overseas. For example, there is an active anti-dumping/countervailing (“AD/CV”) proceeding before the U.S. International Trade Commission and U.S. Department of Commerce (the “DOC”) regarding Chinese graphite active anode material (“AAM”) imports and downstream imports that utilize graphite AAM, which includes imports utilized in our energy storage systems. On May 20, 2025, there was a preliminary countervailing (“CV”) determination by the DOC that assigned a CV tariff at a rate of 11.58%. On July 18, 2025, there was a preliminary antidumping (“AD”) determination by the DOC that assigned a “separate” AD tariff at a rate of 93.5% to certain entities and an adverse AD tariff of 102.72% to all other entities. The AD/CV tariff rate and scope of imports subject to the tariffs may change at the final determination by DOC, which was previously expected by December 5, 2025, but is now likely to be delayed by approximately 30 to 60 days because of the U.S. government shutdown in 2025. We are taking actions to address risks associated with these preliminary increased graphite AAM AD/CV tariffs, including by building in such additional costs into our contracting process and exploring alternative sourcing strategies. Additionally, in response to President Trump’s Executive Order directing the DOC to do so, the DOC initiated a Section 232 tariff investigation related to critical minerals and derivatives. This investigation includes all critical minerals in batteries as well as derivatives that includes all batteries and related subcomponents. It is unclear when DOC will issue its investigation report and recommendations. We are currently assessing the ultimate impact these AD/CV tariffs and a potential Section 232 tariff on battery-related critical minerals and derivatives could have on our suppliers, our business, and our suppliers’ pricing decisions, while we wait for the DOC’s, final graphite AAM AD/CV tariff determination and, Section 232 critical minerals and derivatives investigation recommendations. Due to the uncertainty relating to the final outcome of the various ongoing tariff-related investigations, including the AD/CV proceeding described above, we cannot predict the ultimate impact the outcome of ongoing tariff investigations and any resulting tariffs or other trade actions could have on our business, financial condition, and results of operations.

U.S. Federal Energy Regulatory Commission (“FERC”)

The U.S. Federal Energy Regulatory Commission has taken several steps to help to enable the participation of energy storage in wholesale energy markets over the last decade. For example, in February 2018, FERC issued Order 841 directing regional transmission operators and independent system operators to remove barriers to the participation of storage in wholesale electricity markets and to establish rules to help ensure storage resources are compensated for the services they provide. In September 2020, FERC issued Order 2222 opening U.S. wholesale energy markets to aggregations of distributed energy resources like rooftop solar, “behind the meter” batteries, and electric vehicles. In July 2023, FERC issued Order 2023, which was intended to speed up the process of connecting new energy projects to the grid due to the backlog of more than 10,000 energy projects awaiting interconnection in the United States at the time. Order 2023 includes more stringent deadlines and has adjusted processes that had previously created barriers to battery projects obtaining interconnection and improves interconnection procedures with elements such as more accurate operational modeling of energy storage in interconnection studies. In May 2024, FERC issued Order 1920, which required transmission operators to conduct and periodically update long-term transmission planning over a 20-year time horizon to anticipate future needs. It also provided for cost-effective expansion of transmission that is being replaced, when needed, known as “right-sizing” transmission facilities. Order 1920 was adopted to promote the more efficient and cost-effective integration of new renewable generation and battery energy storage resources and help meet the needs of a rapidly evolving grid. More recently, FERC, at the direction of the U.S. Department of Energy (“DOE”) via a Section 403 Directive, opened a preliminary rulemaking proceeding to assert jurisdiction over the interconnection of large electrical loads to the US bulk electrical transmission system and establish standardized interconnection procedures for those loads. A final rulemaking action is scheduled for April 30, 2026, with initial comments due November 21 and reply comments due December 5.

Energy storage products and solutions require interconnection agreements from the applicable authorities having jurisdiction to operate. In almost all cases, interconnection agreements are standard form agreements that have been pre-approved by the local public utility commission or other regulatory body with jurisdiction over interconnection agreements. As such, no additional regulatory approvals regarding grid interconnection are typically required once interconnection agreements are signed.

U.S. State and Regional Policies

U.S. states and regional transmission service operators (“TSOs”) have various policies designed to support and accelerate adoption of clean and/or reliable renewable energy and battery storage technologies. One or more of the following policies exist within nearly every U.S. state as well as many regional TSOs: utility and/or TSO related capacity, ancillary services, or power purchase agreement procurement requirements or associated tariffs and wholesale market structures that spur project deployment, incentives for project deployment (e.g. tax credits, grants), and policies to streamline project permitting. These policies are driving and accelerating the growth of the utility-scale battery energy storage market across the U.S., although we cannot guarantee when and if we will realize the anticipated benefits of these policies. A recent example of a state policy accelerating such growth is newly passed legislation in Illinois, which is expected to be signed by Governor Pritzker, entitled the Clean and Reliable Grid Affordability Act. The legislation requires the Illinois Power Agency to conduct energy storage procurements in 2026, 2027 and 2028 that result in electric utilities contracting for 3 gigawatts (GW) of energy storage projects, such that those projects reach commercial operation by 2030. The legislation also authorizes the potential for additional procurements via new state integrated resource planning processes.

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Although we generally are not regulated as a utility, federal, state, and local government statutes and regulations concerning electricity heavily influence the market for our energy storage solutions and services. These statutes and regulations, which are continuously modified, often relate to electricity pricing, net metering, incentives, taxation, competition with utilities, and the interconnection of customer-owned electricity generation. Governments, often acting through state utility or public service commissions, also change and adopt different rates and rate tariff structures for industrial, commercial and residential customers on a regular basis. These changes can have a positive or negative impact on our ability to deliver cost savings to customers for the purchase of electricity.

Non-U.S. Energy Storage Related Policies, Regulation, and Legislation

European Union (“EU”) Specific Policies

The European Union energy storage regulation environment is complicated by fragmented rules, slow national implementation of EU directives and mismatch between existing grid infrastructure and modern energy technologies. The EU continues to implement certain regulations aimed at incentivizing clean energy, including energy storage. For example, certain key European policies and initiatives include, but are not limited to:

•The European Green Deal, adopted in 2019, sets a roadmap for Europe to become the first climate-neutral continent by 2050. Energy storage plays a crucial role in this transition by helping balance intermittent renewable energy sources like wind and solar. The EU has recognized that flexible, reliable, and scalable energy storage solutions are essential to meet these ambitious climate goals.

•With the term of the second von der Leyen cabinet, the Green Deal has been reshaped by the Clean Industrial Deal, which aims to sustain Europe’s climate targets, while boosting competitiveness, focusing on clean energy, circularity and scaling up clean tech manufacturing. It includes a number of actions that could support an acceleration of energy storage deployments in Europe.

•The EU Battery Regulation (2020) seeks to make batteries more sustainable, focusing on production, use, and disposal. Energy storage systems, especially those based on lithium-ion batteries, are directly impacted by this regulation. The EU’s focus on sustainability helps incentivize more reliable, efficient, and long-lasting energy storage solutions. The regulation establishes higher recycling rates for batteries, ensures that raw materials are sourced responsibly, and encourages innovation in the reuse and repurposing of used batteries. This regulation directly impacts the cost structure of energy storage systems, especially battery-based systems. As part of the EU’s omnibus procedures, in mid-2025, some due diligence obligations of the battery regulations were postponed by 2 years. Under other omnibus packages, other requirements, including under Corporate Sustainability Due Diligence Directive (CSDDD), were also delayed, and additional revisions are being negotiated that may further affect diligence and reporting requirements of Fluence in Europe.

•The European Commission proposed the REPowerEU Plan in May 2022, which is centered around the goal of making Europe independent from Russian fossil fuels well before 2030. It is meant to incentivize and accelerate the transition to clean energy alternatives and aims to increase the security of energy supply by building and connecting more renewable generation to the grid. In May 2025, the European Commission presented the REPowerEU roadmap, setting out a coordinated, secure and gradual phase out of Russian gas, oil and nuclear energy imports and in June 2025, the Commission proposed a regulation to gradually phase out the import of Russian gas and oil by the end of 2027.

•In June 2024, the Net Zero Industrial Act (NZIA) was entered into by the European Commission, which aimed to improve the competitiveness of the European clean technology industry, attract investments, improve market access for clean technology in the EU and enhance manufacturing capacity for net-zero technologies and their key components. Within the NZIA, batteries and energy storage technologies are defined as net-zero technologies. The NZIA set a goal for net-zero manufacturing capacity to meet at least 40% of the EU’s annual deployment needs by 2030. The NZIA further defines non-price and prequalification requirements for public procurement procedures and renewable energy auctions. While those don’t apply to energy storage, they could be seen as a precedence for increasing product requirements, for example in the area of cybersecurity.

•In July 2024, a reform of the European Electricity Market Design went into effect, pursuant to which EU member states were asked to conduct a biennial assessment of estimated needs for flexibility for a period of at least the next five to ten years. Based on those assessments, EU member states are then asked to establish indicative national objectives for non-fossil flexibility, including the respective contribution of energy storage. The indicative storage objectives will be part of their respective national energy and climate plans. While the implementation of the market design reform, and notably the development of the methodology for the flexibility assessment, is still underway, the new provisions around flexibility are likely to strengthen the role of energy storage in national power market design and allow EU member states to provide state support for the construction of energy storage projects.

•In June 2025, the EU adopted new state aid guidelines, formally known as Clean Industrial Deal State Aid (“CIDSA”) Guidelines. The CIDSA are meant to replace the Temporary Crisis and Transition Framework (“TCTF”). The TCTF as well as energy storage auctions under the Recovery and Resiliency Facility (RRF) have been fundamental over the last years to

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support the roll out of energy storage in a number of EU member states, including but not limited to, Spain, Greece, Romania, Bulgaria, Hungary and Poland. The new CIDSA also provides guidance for accelerated approval of resource adequacy mechanisms, including Capacity markets and strategic reserves under state aid rules and the future alignment between capacity and non-fossil flexibility mechanisms.

The EU also continues to strengthen its cybersecurity framework, specifically as it relates to the energy sector. The NIS II Directive, which EU Member States were required to transpose into national law by October 2024, broadens cybersecurity and incident reporting obligations for operators of essential and important entities, including those in the energy sector. Revisions to the EU Cybersecurity Act, some of which took effect in early 2025, with further legislative updates expected in January 2026, are expected to expand EU-wide cybersecurity certification schemes and requirements for providers of managed security and digital services. The European Commission is developing updates to the EU Energy Security and Resilience Framework, with a legislative proposal anticipated in 2026,which may introduce stricter standards for critical energy infrastructure. Additionally, the Cyber Resilience Act (“CRA”), which entered into force in December 2024 and will apply fully from December 2027, establishes mandatory cybersecurity requirements for products with digital elements. While implementing acts and standards are still under development, it is expected that the CRA will also introduce new requirements and potential 3rd party certification for battery energy storage systems or specific digital components.

European Country Specific Policies

Countries in the EU promote energy storage through both direct funding programs as well as market-based incentives, such as enabling participation in capacity markets. In a number of European countries, reforms on grid fees structures for energy storage, interconnection, and planning processes for energy storage projects and renewable projects are ongoing. Further opening of market opportunities across Europe may be expected in the future as EU member states continue to implement provisions from the European Electricity Market Design and the European Commission’s recommendation on energy storage. Many of these processes are not based on legislative action, but implementation of existing provisions by regulators and TSOs. Policy developments are also shaping the outlook in some of our core European Markets:

•UK: The announcement of a floor-and-cap mechanism for Long-Duration Energy Storage projects has been a key development in the UK market. Whereas Li-Ion based storage technologies were originally excluded from the participation in the Ofgem-run procurement, Li-Ion based solutions have been granted participation in the tender scheme and represent approximately 70% of the projects that have been determined to be eligible to progress to the final assessment stage of the scheme, to be conducted in 2026.

•Germany: Key developments for energy storage in Germany are the ongoing discussion on the introduction of a capacity market as well as a reform of grid fee structures for energy storage that was started by the Germany regulator in the beginning of 2025. A new grid fee structure will apply latest after the current grid fee exemption for energy storage is set to expire in August 2029. The recent ruling of the Federal Court of Justice, which states that BESS can be obligated to pay construction cost contributions, has clarified the previously uncertain legal situation regarding these contributions. Recent legislation also seeks to strengthen co-location of BESS and renewables and to provide battery installations clearer dispatch signals to reduce grid congestion and grid extension costs in Germany. Furthermore, the German government has recently proposed a draft law aimed at resolving planning law uncertainties relating to the construction of BESS.

•Italy: In October 2025, Teena S.p.A., the Italian transmission service operator, awarded 10 GWh of battery storage assets to be delivered in 2028 under the first round of the tenders pursuant to the Electricity Storage Procurement Mechanism (“MACSE”) launched by Italy in 2024. MACSE is set to award 50 GWh of storage technologies by 2030 and, although future tender rounds will be subject to adjustments of the tender rules, all capacity to date has been awarded to Li-Ion based projects.

We believe current regulations in Europe are creating a favorable environment for the growth of energy storage technologies by providing financial incentives, policy frameworks, and market access to drive the transition to a clean, renewable energy future. These regulations not only support technological innovation in energy storage but also work to foster the grid’s becoming more flexible, resilient, and capable of handling large shares of renewable energy.

Asia Pacific Specific Policies

Countries in the APAC region, including Australia, are increasingly seen as key players in the global energy storage market, driven by a combination of economic growth, rising energy demand, renewable energy adoption, and government policies aimed at achieving sustainability goals. Several countries in the region have rapidly embraced energy storage technologies, both for grid stability and to facilitate the transition to renewable energy. For instance, Australia has been a pioneer in integrating energy storage into its grid, with policies supporting both residential storage (like home batteries) and large-scale storage systems. In September 2022, Australia passed climate change legislation containing a targeted 43% reduction in the emissions intensity of its economy of 2005 GHG levels by 2030 and a reduction to net-zero emissions by 2050 and some of its specific states have their own targets, including Victoria’s 95% renewable generation by 2035 target and 2.6 GW energy storage by 2030. Additionally, in December 2022,

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Australia established the Capacity Investment Scheme which is a government initiative that aims to encourage new investment in dispatchable renewable energy generation and storage to support reliability in Australia’s energy market. It is intended to help support Australia’s energy system to reach 82% of renewables by 2030. In addition to the Capacity Investment Scheme, some states are progressing their own government funding schemes, such as the NSW Energy Roadmap and South Australia Firm Energy Reliability Mechanism

Permits and Approvals

Each of our installations or customer installations must be designed, constructed, and operated in compliance with applicable international, federal, state, and local laws, regulations, codes, standards, and guidelines. To install, commission, and operate energy storage products and solutions on our platform, we, our customers, or our partners, as may be applicable, are required to obtain and maintain applicable permits and approvals from the relevant governmental or regulatory authorities having jurisdiction for the delivery and installation of energy storage products and solutions and to commission and interconnect the products with the local electrical utility and grid. We often cannot predict whether or when all permits and approvals required for a given customer’s project will be granted or whether the conditions associated with the permits and approvals will be achievable. Furthermore, unforeseen delays in the permitting applications and the permitting process have and may in the future delay the timing of fulfilling our energy storage contracts thereby adversely affecting our revenue and operating results.

Continuing Equity Owners

Our Continuing Equity Owners are AES Grid Stability, Siemens, SPT Investment Management, Sarl (“SPT Invest”) and QHL. Siemens is an affiliate of SPT Invest and may be deemed to share beneficial ownership of the shares held of record by SPT Invest. SPT Invest is a wholly owned subsidiary of Siemens Pension-Trust e.V. (“Siemens e.V.”) and Siemens e.V. may be deemed to share beneficial ownership of the shares of Class A Common Stock held of record by SPT Invest. As of September 30, 2025:

•AES Grid Stability owns (1) 51,499,195 limited liability company interests of Fluence Energy, LLC (“LLC Interests”), representing approximately 28.5% of the economic interest in Fluence Energy, LLC and (2) 51,499,195 shares of Class B-1 common stock, par value $0.00001 per share, of Fluence Energy, Inc. (“Class B-1 common stock”), representing approximately 66.6% of the combined voting power of all of Fluence Energy, Inc.’s common stock;

•Siemens owns 39,738,064 shares of Class A common stock, par value $0.00001 per share, of Fluence Energy, Inc. (“Class A common stock”) and SPT Invest Management, Sarl (“SPT Invest”) owns 11,761,131 shares of Class A common stock. Siemens and SPT Invest collectively represent approximately 13.3% of the combined voting power of all of Fluence Energy, Inc.’s common stock and approximately 28.5% of the economic interest in Fluence Energy, Inc.; and

•QHL owns 14,668,275 shares of Class A common stock, representing approximately 3.8% of the combined voting power of all of Fluence Energy, Inc.’s common stock and approximately 8.1% of the economic interest in Fluence Energy, Inc.

Since our Continuing Equity Owners, AES Grid Stability, Siemens, SPT Investment Management, Sarl (“SPT Invest”), and QHL have more than 50% of the voting power for the election of directors, we are considered a “controlled company” for the purposes of the Nasdaq rules. As such, we qualify for, and intend to rely on, exemptions from certain corporate governance requirements, including the requirements to have a majority of independent directors on our board of directors, an entirely independent compensation committee or to have director nominations be made, or recommended to the full board of directors, by its independent directors or by a nominations committee that is composed entirely of independent directors.

Corporate Information

We file or furnish periodic reports and amendments thereto, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and other information with the Securities and Exchange Commission (“SEC”). In addition, the SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically. Our website is located at https://fluenceenergy.com and our reports, amendments thereto, proxy statements and other information are also made available, free of charge, on our investor relations website at https://ir.fluenceenergy.com as soon as reasonably practicable after we electronically file or furnish such information with the SEC. The information posted on our website is not incorporated by reference into this Annual Report or any of our other securities filings unless specifically incorporated herein by reference.