Fluence Energy, Inc. (NASDAQ:FLNC) Q4 2022 Earnings Call Transcript

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Julian Nebreda: Good. Maybe later or couple forward start I think is important. The regulations of will be considered on a U.S. basis battery model system has not been issued. So it is still unclear how down, how upstream they will go, whether they will go only for the assembly, I think that will be more that whether they will require still to it from the U.S., where the sales need to be from the U.S. or further down, whether the high needs to happen. What we’re doing is we’re building a strategy of not since that we believe that in any event will be included and try to go of much as we can to ensure that we can meet the qualification. But the reality is that today, we are in a way, flying is not the regulations are not there is some that you buy by American type of rules, the U.S. guidance what you introduced, but there’s no — they do not asset, just to let you know.

So we’re working on it, how we’re working on moving as much value add has been coming to the U.S. to ensure that we are we do qualify and make it efficient at the influence make that are not regret decision, no matter we believe that no matter what happens. We will have to build our modules in the U.S. in order to make that one. We’re also looking to — we’re talking to battery cell manufacturers to buy sales in the U.S. or look into still in the U.S. to try to create a spot value. So that’s where we are. I’ll let Rebecca answer the first part of the question.

Rebecca Boll: Sure. Thank you, Maheep. So to clarify your question back to, it’s just that you’re looking to understand the difference between the Fluence and cube and what we might call the Ultrastack or Gridstack. So you can think about the way we design products as we build a platform first. In the platform, we have this thing called queue, which is the enclosure with the batteries inside of it. But our platform also includes inverters, control systems, fire safety systems and we put all of those pieces together in well-defined units that create our stack. So Gridstack, for example, is a product on top of that platform that is inclusive of inverters, control systems, cubes, et cetera. And we send out Gridstack units as we sell.

We announced today Ultrastack, which is another version of that product that sits on that same platform. We didn’t recreate the platform. It’s a platform that’s been out of the world and well test, et cetera. But the product that we announced today, the Ultrastack, where its differentiation really lies control system. So it’s a highly redundant system because of the work that it needs to do with the transmission operators. It responds to the grid very quickly in 150 milliseconds now that we’ll be down to 100 milliseconds to the future. And it does all kinds of cool things like it has a really high reliability feature. It has a very high effort of power oscillation stamping, which helps just the grid become more stable. So it’s a different product and the real differentiation of that product for that Ultrastack pair to Gridstack is in the control system.

And I would mention just to connect back to something earlier, that’s where we can also start to look at higher margin deals because when we create such a set of differentiation with our technology, we — it makes us it easier for us to look for that double-digit or more margin.

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