The Qatar Investment Authority is making a $125 million investment in Fluence, a company specializing in energy storage systems integration and power management technology development, resulting in a company valuation exceeding $1 billion.

Prior to this transaction, the venture—a collaboration between AES Corp., an American independent power producer, and Siemens, a German industrial conglomerate—was already assessed at $900 million, as stated by Marek Wolek, Fluence’s vice president of strategy and partnerships.

Fluence intends to utilize these new funds to enhance and acquire software and services, broadening its range of solutions for its primary customer base, which includes utilities and independent power project developers, according to Wolek.

Wolek also indicated that the company may seek further funding through public markets in the near future, pointing to the QIA’s existing investment in QuantumScape, a battery company that became publicly traded through a special purpose acquisition company in late November and has since experienced substantial stock growth.

Following the QIA investment, both AES and Siemens will continue as majority shareholders, each holding a 44% stake in the company.

“Addressing the global challenge of climate change requires the combined strengths of technology innovators and investors worldwide,” stated Manuel Perez Dubuc, Fluence’s chief executive officer. “We view energy storage as essential for a decarbonized power grid, and the addition of QIA to our shareholder base will accelerate our innovation and enable us to serve the substantial global market for large-scale, battery-based energy storage.” 

As a founding member of the One Planet Sovereign Wealth Fund Initiative, QIA possesses significant capital resources to further support climate technology companies such as Fluence.

Fluence has already successfully deployed approximately five gigawatts of energy storage and management systems for a diverse range of clients, as noted by Wolek.

While Fluence recognizes its energy storage business as a vital element in the global effort to reduce carbon emissions and combat climate change, Wolek emphasized that electric storage is not the sole technological solution.

“It’s challenging to identify a single technology within the energy market that can comprehensively resolve all issues,” Wolek explained. 

Instead, the company focuses on ensuring its battery technology seamlessly integrates with other technologies necessary to meet the power demands of both industry and society, he said. “Our priority is to be the leading experts in battery-based storage,” Wolek stated. “Simultaneously, we invest considerably in digital solutions to expand our dispatch capabilities beyond storage alone.”

This may involve future collaborations with other energy providers, such as developers of hydrogen fuel projects, he added.

“Our ultimate objective is to achieve mastery of the energy aspect related to battery technology,” Wolek said.

This ambition positions the company in a competitive landscape alongside the energy business developed by Elon Musk’s Tesla.

Fluence’s current billion-dollar valuation and QuantumScape’s $36.6 billion market capitalization provide context for understanding Tesla’s market value, which exceeds $650 billion.