What Fluence Energy, Inc. told the SEC could break it.

Fluence's revenue is concentrated in a few large customers: its two largest customers accounted for approximately 41% of FY2025 revenue (50% and 49% in FY2024 and FY2023), and approximately 24% of FY2025 revenue was with related parties, primarily AES and its affiliates (AES is also ~13% of the $5.3B backlog). AES is both a founder of Fluence and a major customer, so a slowdown in AES's project pipeline — or loss of either top-two customer — would materially affect revenue, and the related-party nature adds governance/conflict considerations. The AES relationship is captured as an inverted 'supplies' edge; this records the aggregate customer concentration. Severity high.

“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.”

Fluence's China-weighted battery supply chain is directly exposed to escalating U.S. trade actions. The Section 301 tariff on lithium-ion non-EV batteries imported from China is set to rise from 7.5% to 25% effective January 1, 2026 (covering integrated battery energy storage systems and modules), and there is an active AD/CV proceeding on Chinese graphite active anode material used in its systems (a preliminary countervailing determination assigned an 11.58% rate, with antidumping duties also preliminarily determined). Broad April-2025 tariffs on nearly all imports — including high Chinese rates, later partly negotiated down — add further cost and planning uncertainty. These duties raise landed costs on cells/modules/anode material that Fluence may not fully pass through. A specific, quantified, current trade-policy exposure. Severity high.

“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.”

Fluence is exposed to fluctuating market prices of commodity raw materials — explicitly steel, aluminum and lithium — that are used in the components its suppliers provide as inputs into its energy storage systems. Lithium in particular drives battery-cell cost (and falling lithium/battery prices have recently cut Fluence's average price per GWh), while steel and aluminum feed enclosures, racking and structural components. Price spikes or supply restrictions on these materials would raise input costs and pressure margins on fixed-price storage contracts. A genuine raw-material commodity dependence (supplier components, no single named supplier, so a commodity risk rather than an edge). Severity medium.

“We are subject to risk from fluctuating market prices of certain commodity raw materials, including steel, aluminum and lithium, that are used in the components from suppliers that are inputs into our products.”

Fluence integrates grid-scale battery systems, and the lithium-ion battery cell supply chain on which it depends has historically been heavily concentrated in China — spanning raw-material processing, anode/cathode production and cell manufacturing. This single-region concentration exposes Fluence to China-specific disruption (export controls, geopolitics, the Taiwan/China backdrop, logistics) and to Chinese competitors who benefit from vertically integrated supply chains and state support to undercut on price. Fluence is actively diversifying its battery supplier base (new suppliers in Asia, North American sourcing, a U.S. battery-cell supply agreement) to reduce single-source/single-region reliance, but the upstream cell and material base remains China-weighted. A distinctive country supply-chain concentration. Severity high.

“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.”