# Fluence Signs Battery Supply Deal Amid Pentagon Concerns

Fluence has entered a framework agreement with Chinese battery manufacturer EVE Energy for up to 206 GWh of battery deliveries spanning 2027 to 2031, representing one of the largest long-term contracts in the global energy storage sector. However, EVE Energy's recent designation by the Pentagon as a Chinese military-linked company raises potential challenges for U.S. government procurement, financing, and eligibility for tax credits under evolving supply chain regulations.

- **Why this matters:** Procurement professionals should assess the implications of sourcing from suppliers flagged for national security concerns, as this may affect contract approvals and financing options.
- The designation introduces risks related to compliance with U.S. supply chain security policies and potential restrictions on government funding or incentives.
- Contractors and agencies involved in energy storage projects should evaluate alternative suppliers or mitigation strategies to navigate regulatory uncertainties.
- This development signals increased scrutiny on foreign supply chains in critical energy infrastructure procurement, impacting long-term planning and vendor selection.

**Jurisdictions:** federal
**Industries:** Energy & Utilities
**Topics:** Regulatory Compliance
**Published:** September 28, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- U.S. Senate

### Vendors
- Fluence (prime contractor)
- EVE Energy (supplier)

### Sources
- [Fluence signs 206 GWh battery supply deal with Chinese maker flagged by Pentagon](https://gcn.com/fluence-206-gwh-battery-supply-deal/22008) - gcn.com