Siemens AG and AES Corporation have announced their agreement to form a new global energy storage technology and services company under the name Fluence. Siemens and AES will have joint control of the company with each holding a 50 per cent stake.

Fluence's global headquarters will be located in the Washington, DC area with additional offices located in Erlangen, Germany and select cities worldwide. The transaction is expected to close in the fourth quarter of calendar year 2017, subject to regulatory and other approvals. Fluence will operate independently of its parent companies, combining the capabilities and expertise from Siemens' battery-based energy storage solutions group under the Energy Management division with AES' subsidiary, AES Energy Storage.